HONASA — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

Moderator · Conference Operator

MS. POOJA KUBADIA – JM FINANCIAL Honasa Consumer Limited August 13, 2026

Ladies and gentlemen, good day and welcome to the Honasa Consumer Limited Q1 FY27

Thank you.

Our next question comes from the line of Vidisha Sheth with Ambit Capital.

Please go ahead.

Honasa Consumer Limited August 13, 2026

Videesha Sheth

Hi.

My first question was on the emerging younger brand portfolio, and this I'm looking at excluding The Derma Co.

So the organic brands, or even the inorganic ones, be it BBLUNT, Aqualogica, Dr. Sheth's, it's been a little challenging to scale those brands beyond the INR180 crores, INR200 crores ARR.

And with even Reginald reaching this, a similar number of INR150 crores ARR, what are the initiatives that you're undertaking to scale up all of these brands to the next level, maybe to a INR500 crores ARR?

Moderator · Conference Operator

Thank you.

Our next question comes from the line of Aditya Soman with CLSA.

Please go ahead.

Aditya Soman

Hi.

Good evening and thanks for the opportunity.

So thanks for the clarification on sort of the margins and on the slide that you had.

So just to be sure about 300 basis points to 350 basis points was sort of organic margin improvement and then you have another 100 to 150 which is sort of seasonal which may not reoccur from 2Q onwards.

Is that the right way to look at this number for this year?

Moderator · Conference Operator

Thank you.

Our next question comes from the line of Jay Doshi with Kotak.

Please go ahead.

Jay Doshi

Yes.

Hi, thanks.

I have a couple of questions.

First one, in terms of the retail outlet reach of INR3 lakh, is this for Mamaearth as well as The Derma Co.?

If not, then where is The Derma Co. in the journey of offline scale-up?

And if you could give some color of this INR1,000 crores ARR, what is the split between online and offline ballpark at this point of time for The Derma Co.?

That’s question number one.

And the second one is some thoughts on, you know, Fluence Pharma acquisition.

How do you intend to build the nutraceuticals business on that asset and how, ballpark, what should we expect in the next 12 months in that space?

Honasa Consumer Limited August 13, 2026

Moderator · Conference Operator

Thank you.

The next question is from the line of Umang Shah with Banyan Tree Advisors PMS.

Please go ahead.

Umang Shah

Hi sir.

Thank you for taking my question.

Great performance.

Sir, my question was, why has it been that fragrance as a segment has not been cracked by any of the large players in India?

What have been the challenges?

And the second part to it was, if my memory serves me right, we had done a foray in fragrances through Mamaearth some time back, and we discontinued it.

So what were the learnings from the same?

Moderator · Conference Operator

Thank you.

Our next question comes from the line of Nitin Shakdher with Green Capital Single Family Office.

Please go ahead.

Nitin Shakdher

Hi, good evening.

This is Nitin Shakdher from the Green Capital Single Family Office.

Congratulations to Varun, Ghazal and Ramanpreet for a stunning performance for a tough quarter.

And my question is more related to, in my conversations as an investor with many large Honasa Consumer Limited August 13, 2026 FMCG companies that are in personal care, they’ve indicated a huge hit to their bottom lines in terms of either the cost of packaging or the cost of crude oil derivative products, or the cost of certain logistics, which has increased over the last quarter, and it’s showcasing in the results.

I don’t see that impact happening in Honasa, so I would just like to understand what has the company done specifically in terms of offsetting the costs for this quarter?

Because it seems very impressive that you probably only had an increase of INR30 crores, INR40 crores rather than anything more than that on the cost of raw materials.

Moderator · Conference Operator

Thank you.

Our next question comes from the line of Nitin with HDFC Securities.

Please go ahead.

Nitin

Yeah, hi.

Thanks for taking my question.

My first question pertains to general trade.

We have seen consistent growth here.

Just wanted to understand how is the growth with our old distributors, like whom we have not replaced.

Just wanted to see how is the like-to-like growth for Mamaearth brand or maybe in the offline where you have the existing distributors.

Moderator · Conference Operator

Thank you.

Our next question is from the line of Jay Doshi with Kotak.

Please go ahead.

Jay Doshi

Thanks for the follow-up opportunity.

First question is on Mamaearth.

Is the growth well- balanced across online and offline channel, or is it largely driven by offline channel only?

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, we will take that as our last question for today.

I would now like to hand the conference over to the management for closing comments.

Over to you, sir.

Thank you.

On behalf of Honasa Consumer Limited, that concludes this conference.

Thank you all for joining us.

You may now disconnect your lines.

Questions and answers

Moderator · Conference Operator

Thank you very much.

We will now begin the question-and-answer session.

Our first question comes from the line of Vivek M with Jefferies.

Please go ahead.

Vivek M

Hi Varun and team.

Good evening.

Two questions from my side.

First is, I know you are a very young company with young brands, but when we look at purely from a Y-o-Y comparison, as we head into let's say the rest of the year, the comps start to get higher on that, let's say revenue base.

What is your expectation for growth, let's say, from a 9 month perspective?