Honasa Q1 FY27 ad spend rises 17% as revenue and margins accelerate

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TL;DR:

Honasa lifted Q1 FY27 advertising spend 16.7% to ₹241 crore as e-commerce grew 20%+, while profit more than doubled. The numbers suggest its heavier brand investment is being matched by stronger omnichannel sales and operating leverage.

Article:

Honasa Consumer increased advertising spend by 16.7% year on year to ₹241 crore in Q1 FY27, even as the Mamaearth parent delivered its strongest quarterly profit and accelerated across digital and offline channels. The combination matters because higher brand investment did not stop operating leverage from improving: reported revenue from operations rose 27% to ₹755.9 crore and profit after tax more than doubled to ₹90.4 crore.

On a like-for-like basis, adjusted for a Flipkart settlement-related change in revenue recognition, Honasa reported revenue of ₹785 crore, up 31.8%, with EBITDA at ₹110 crore and a 14.1% margin. E-commerce grew more than 20% year on year, while general trade secondary sales and modern trade offtake each grew more than 40%, according to the company’s investor presentation.

The quarter points to a broader omnichannel growth model rather than dependence on digital customer acquisition alone. Honasa’s focus categories, including face cleansers, shampoos, serums, suncare and moisturisers, grew more than 35% and increased their contribution to over 85% of the business.

“Our Focus Categories grew 35%+, and we are seeing stronger demand across General Trade, Modern Trade and eCommerce,” CEO Varun Alagh said.

Growth is also becoming less concentrated around Mamaearth. The flagship brand grew in the high teens, younger brands expanded more than 40%, and The Derma Co crossed ₹1,000 crore in annual recurring net sales value, Honasa said.

The test now is durability. Reuters reported in February that Honasa was targeting high-teen FY27 revenue growth against 15% analyst consensus compiled by LSEG. Q1 has started above that pace; the next question is whether advertising efficiency and margins hold as the year progresses.