Honasa triples EBITDA, pays first dividend, sets five-year targets.
Q4 revenue rose 28% to ₹682 crore. The company is now setting ambitious five-year targets for growth and margins.
— 5 earlier stories on Honasa Consumer Ltd. →What's new
- Quarterly revenue rose 28% year-on-year to ₹682 crore, net profit ₹69 crore.
- Full-year EBITDA tripled, driven by face wash and serums; a maiden ₹3 per share dividend was declared.
- Management guided for high-teens revenue CAGR and a 500 bps EBITDA margin improvement over five years.
Why this matters
The first dividend signals cash generation is real, not just a revenue story. The five-year guidance is ambitious: high-teens growth requires doubling distribution from 200,000 to 500,000 outlets in a market crowded with competitors.
What we're watching
- How the Dr. Sheth's integration performs after management flagged narrative inconsistencies.
- Execution on the plan to expand distribution from 200,000 to 500,000 outlets.
- Whether the high-teens growth assumption holds in a competitive beauty market.
The full read
Honasa's Q4 is solid. Revenue hit ₹682 crore, up 28%. The bigger story is the full year: EBITDA grew 200%. Management paid a first-ever ₹3 per share dividend. That's a real number. The call's substance was the forward view. The company is guiding for high-teens CAGR over five years and a 500 bps margin gain. To get there, distribution must scale from 200,000 to 500,000 outlets. Management flagged some confusion around Dr. Sheth's, which grew over 100%, but reaffirmed its plans. The growth math is aggressive for a competitive market.
Questions answered
- What was the financial performance for the quarter and full year?
- Q4 revenue was ₹682 crore, up 28% year-on-year, with a net profit of ₹69 crore. For the full year, revenue grew 20% and EBITDA tripled versus the prior year.
- What did management guide for the next five years?
- Management guided for a high-teens compound annual growth rate in revenue and a 500 basis point improvement in EBITDA margins over five years.
- How did the individual brands perform?
- Mamaearth delivered double-digit growth, The Derma Co leads in actives, and Dr. Sheth's grew over 100%. Management did note some inconsistencies in the narrative around the Dr. Sheth's acquisition.
- What is the dividend and distribution plan?
- Honasa declared its first-ever dividend of ₹3 per share. The company plans to expand its distribution network from 200,000 to 500,000 outlets over three to five years.
Honasa Consumer Ltd.
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All notes on HONASA →- 21 May 2026 · 6:32 PM IST Honasa triples EBITDA, pays first dividend, sets five-year targets.
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