Honasa Eyes ₹5,500 Cr Revenue For FY31

Honasa Consumer, the parent entity of BPC brands like Mamaearth, Aqualogica, and BBlunt, laid out its long-term vision to reach a consolidated revenue of ₹5,500 Cr by FY31. 

In essence, the company is targeting to more than double its top line over the next five fiscal years. In the fiscal year FY26, the company’s top line increased by about 16% YoY to  ₹2,391.9 Cr. Meanwhile, its net profits surged by 175% YoY to ₹200.2 Cr. 

Besides the consolidated financial projection, Honasa outlined the following five goals that would strive to achieve over the next five years: 

• Fastest-Growing FMCG: Become the fastest FMCG company in India to cross the ₹5,000 Cr revenue milestone
• Mamearth Growth Milestone: Scale its flagship brand Mamaearth to become the fastest brand to reach ₹2,000 Cr in revenue
• Portfolio Diversification: Create more flagship brands by scaling The Derma Co to over ₹1,500 Cr revenue and growing at least two other portfolio brands to over ₹500 Cr each

• Market Share Leadership: Become the national market leader in at least two skincare categories, and crack the top three in two additional categories

• Margin Improvement: Expand its EBITDA margin by 500 bps to cross the 15% EBITDA margin milestone

Let’s dive into the company’s ambitious plans to grow its top line and bottom line. 

Honasa To Move Beyond Mamaearth

The BPC major, which rose to prominence through the success of its flagship brand Mamaearth, is betting that future growth will be driven by a combination of mature, emerging and experimental product categories. 

However, it expects core brands — Mamaearth and The Derma Co — to remain the primary growth engines, contributing ₹3,750 Cr of the projected ₹5,500 Cr revenue target.

For the younger brands in its portfolio — Aqualogica, Reginald Men, Dr Sheth’s, Staze 9to9 and BBlunt — the company expects to achieve an FY31 revenue of ₹1,500 Cr.  The remaining ₹250 Cr is expected to come from what Honasa classifies as ‘next horizon categories’.

The company disclosed that these categories would encompass offerings in the nutraceuticals, fragrances, and oral care segments. Important to mention that the company expanded into the oral care segment recently by investing ₹10 Cr to acquire a significant stake in the premium oral wellness and beauty startup Fang Oral Care. While it is yet to foray in the two remaining categories under separate brands, it has experimented with fragrance under Mamaearth banner in the past. 

Evolving The Distribution Model

Another key cog in Honasa’s growth plan: strengthening its omni-channel distribution network and reshaping its channel mix. 

By FY31, the company aims to make General Trade (GT) the channel contributing the maximum to its revenue mix, bringing in ₹750-800 Cr, followed closely by Modern Trade (MT) and standard e-commerce platforms, which are expected to contribute ₹700-750 Cr each. 

Quick commerce platforms are projected to bring in ₹550-600 Cr, while Honasa’s own D2C channel is expected to account for just ₹400-450 Cr.

To support the offline expansion, Honasa plans to increase its direct retail presence from its current reach of approximately 120,000 outlets to more than 300,000 outlets across India, adding that AI would “supercharge” this model to enable further scale. 

It also noted that its transition from its initial online-first approach to its current omni-channel approach was driven by cutting out super-stockists and moving to a direct distribution model, enabling 6X growth in its direct reach over the last two years. 

Important to highlight that the company undertook a major rearrangement of its offline distribution in 2025. Under Project Neev, the company overhauled its offline general trade distribution network by launching modernised supply chains to move beyond a complex, multi-layered distribution setup (involving super-stockists) to a direct, single-layer distributor system in top 50 Indian cities.

Understanding The Margin Expansion Bid

Honasa also rejected the “myth” that it is cutting down brand spending to achieve profitability rather than prioritising growth. 

“About 20% EBITDA can be reached with efficiencies in channel mix, performance spends and procurement spends – while maintaining similar brand spends,” the company claimed.

Honasa stated that its general trade is about 3X as profitable as D2C in terms of weighted average contribution margin, while modern trade and quick-commerce are 2.5X more profitable relative to its own digital channels. Hence, the changing channel mix is expected to add around 100-150 bps in EBITDA margin as the company aims to cross the 15% margin milestone. 

Further, the company projects an improvement of 100-150 bps in its EBITDA margin to be driven by channel spend efficiencies, and another 100-150 bps from changing category mix driven by scaling into higher-margin product partitions. 

Honasa also aims to achieve additional operating leverage in terms of payroll, distribution efficiency, and other fixed overheads, which would add a further 150-200 bps to its EBITDA margins. 

Shares of Honasa ended today’s trading session 1.32% higher at ₹413.9.

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