Brands
Honasa’s Varun Alagh targets next Rs 500 crore brands as profit doubles
Profit doubles as Mamaearth rebounds and new labels race to scale
MUMBAI: Honasa Consumer’s co-founder and chief executive officer Varun Alagh has set his sights on building the company’s next crop of Rs 500 crore brands, as the beauty and personal care firm delivered record revenue and nearly doubled its profit.
The Mamaearth parent reported revenue of Rs 602 crore, up 21.7 per cent year on year, with volume growth of 30 per cent. Ebitda rose to Rs 66 crore at a margin of 10.9 per cent, while profit after tax reached its highest-ever quarterly level.
“We have delivered our highest-ever quarterly revenue and almost doubled our PAT,” Alagh said. “The fundamentals we have rebuilt over the past few quarters are clearly delivering outcomes.”
With Mamaearth back to double-digit growth and The Derma Co sustaining strong momentum, Alagh believes the next wave of brands is ready to step up.
“It’s a race to become the next Rs 500 crore brand,” he said. “Reginald Men, Dr. Sheth’s, BBlunt, even Staze in colour cosmetics, each of them has the right to win in its category.”
Honasa’s portfolio of young brands grew more than 25 per cent during the quarter. The Derma Co, its science-led skincare label, has now achieved double-digit Ebitda margins and continues to gain share in sunscreen and actives-based skincare.
Mamaearth, once the company’s sole growth engine, has returned to the teens in year-on-year growth after a strategic reset.
“We focused on superior formulations, sharper communication and six core categories,” Alagh said. “We are seeing strong share gains, not just growth riding the market.”
Importantly, over 90 per cent of Mamaearth’s growth came from existing distributors and large retail partners, reflecting stronger consumer pull rather than mere expansion of reach.
From a channel perspective, e-commerce grew over 20 per cent, while general trade and modern trade delivered more than 25 per cent growth in secondary sales. Direct distribution now contributes nearly 80 per cent of revenue.
Honasa has also made a calculated entry into men’s skincare with the acquisition of Hyderabad-based Reginald Men. Alagh believes the category is at an inflection point.
“In the last two to three years, we’ve seen searches for ‘sunscreen for men’ and ‘face wash for men’ grow multi-fold,” he said. “Men want multi-benefit products without complicated regimes.”
Beyond category expansion, the acquisition strengthens Honasa’s footprint in South India and broadens its talent base.
The company reiterated its target of expanding Ebitda margins by around 100 basis points annually.
“Our endeavour is to unlock at least 100 basis points every year through a mix of A&P efficiency and overhead leverage,” said chief financial officer Raman Preet Sohi.
While advertising spends in absolute terms have risen, improved effectiveness has driven percentage efficiencies. Gross margins remained broadly stable, with guidance to maintain levels above 70 per cent.
With legacy FMCG giants sharpening their digital play and acquiring new-age brands, Alagh remained unfazed.
“Competition is not new to us,” he said. “We were born in categories where much larger players existed. The real value gets created when you focus on the consumer and where the consumer is moving.”
For Honasa, that focus now extends beyond one hero brand. As Alagh put it, the company is not content with a single success story. It wants a stable of them, each marching towards the Rs 500 crore mark.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
