The board of Honasa Consumer, which oversees brands like Mamaearth, Aqualogica, and The Derma Co, has announced a proposed final dividend of ₹3 per equity share. This marks the company's inaugural dividend, following a remarkable quarterly net profit of ₹69.4 crore for the March quarter, representing a 178% increase compared to the same period last year.
With a total dividend payout nearing ₹98 crore, this proposal, pending shareholder approval at the annual general meeting, accounts for approximately 51% of Honasa’s standalone net profit for FY26. The company also reported a 23% year-on-year increase in revenue from operations, reaching ₹657 crore in the same quarter.
For FY26, Honasa’s net profit rose to ₹200 crore, up from ₹72.6 crore the previous year, while operating revenue increased by 15% to ₹2,391 crore, driven largely by the success of its emerging brands like The Derma Co and Aqualogica.
Strong Performance from Emerging Brands
Brands such as Dr Sheth’s, Staze, and Bblunt experienced a sequential growth of 40%, with The Derma Co and its latest addition, Reginald Men, leading this growth. The Derma Co boasts a double-digit EBITDA profile, while Reginald Men, acquired in December 2025, achieved an annualized run rate of over ₹100 crore, doubling its revenue year-on-year.
Mamaearth, the flagship brand, recorded mid-teen growth during the quarter and increased its market share in key categories like face cleansers and shampoos by up to 120 basis points over the past year. The brand's direct distribution model is beginning to yield positive results, with nearly 120,000 outlets billed directly through distributors in FY26.
Varun Alagh, co-founder and CEO of Honasa, expressed optimism about future growth, stating that both The Derma Co and Mamaearth are in the double-digit EBITDA range and are expected to see improved margins moving forward.
Price Stability and Future Outlook
During the past year, Honasa implemented price increases across various categories to counteract rising input costs linked to geopolitical issues, particularly the US-Iran war. However, Alagh indicated that no further price hikes are anticipated in the near future, suggesting that the adjustments made should adequately address cost inflation for now.
Investments in technology, especially in AI-led content systems and distribution infrastructure, are beginning to enhance execution quality, according to the company.
Additionally, the board has re-appointed Subramaniam Somasundaram, former CFO of Titan Company Ltd, as an independent director for five years. Following the announcement, Honasa’s shares saw a nearly 1.4% increase, closing at ₹361.70 on the NSE.
