Honasa targets Rs 5,500 crore revenue and 15% EBITDA margin by FY31
Mamaearth parent Honasa Consumer plans to concentrate investment on core beauty and baby-care categories, which account for about 80% of revenue. The company said Mamaearth gained share in face cleansers and shampoos across general and modern trade in FY26.
What happened
Honasa Consumer targets Rs 5,550 crore revenue and 15% EBITDA margin by FY31, focusing investment on core beauty and baby-care categories. Mamaearth gained
Key facts
- Revenue target: Rs 5,550 crore by FY31
- EBITDA margin target: 15% by FY31
- Further margin expansion target: 500 basis points
- FY26 total income: Rs 475.53 crore
- FY26 income growth: 15.37% YoY
- Q4 FY26 net profit: Rs 25 crore
- Q4 FY24 net profit: Rs 30 crore
- Q4 net profit decline: 18% YoY
- Focused categories contribute about 80% of revenue
- Company founded in 2016
- Listed in November 2023
Why this matters
Honasa’s core-category focus suggests acquisition or partnership interest will likely center on beauty and baby-care brands, capabilities and channels that accelerate scale without diluting margin ambitions.
What to watch
- Quarterly revenue growth in the core beauty and baby-care portfolio versus the pace required to approach Rs 5,500 crore by FY31.
- EBITDA-margin progression, especially whether annual expansion begins to consistently exceed 100 basis points.
- Market-share data for Mamaearth in face cleansers, shampoos, face care and baby care across general trade, modern trade and e-commerce.
- Advertising and promotion expense as a percentage of sales, including signs that share gains require materially higher spending.
- General-trade expansion metrics: outlet additions, numeric distribution, repeat orders and sales contribution from non-metro markets.
- Gross-margin movement from premiumization, sourcing scale and product-mix changes.
- Any increase in discounting, inventory provisions, returns or channel incentives that would signal weaker sell-through.
- Competitive launches and pricing actions by Hindustan Unilever, L'Oréal, Dabur, ITC, Nykaa-owned brands and fast-growing D2C peers.
- Increase modern-trade and general-trade shelf presence for shampoos, face cleansers, serums and baby-care SKUs, especially beyond top metros.
- Rationalize low-velocity brands and SKUs while redirecting innovation budgets toward high-repeat, high-margin core categories.
- Use Mamaearth share gains to negotiate better retailer placement, merchandising terms and distributor economics.
- Expand premium and problem-solution product formats to lift average selling prices and gross margin without relying solely on volume growth.
- Tighten advertising efficiency, inventory turns and fulfillment costs to demonstrate a credible path toward the targeted EBITDA expansion.