Honasa Consumer Limited released the transcript of its Earnings Conference Call held on November 12, 2025, discussing the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025. Key highlights include: * The company achieved a 22.5% like-for-like revenue growth in Q2 FY26. * Gross profits reached an all-time high of 71.9%, with EBITDA stable at 8.4% (₹48 crores) and PAT at ₹39 crores. * For H1 FY26, the company delivered 14.5% growth, an EBITDA margin of 8% (₹93 crores), and PAT at 7%. * A change in Flipkart Group's settlement process reduced revenue recognition by ₹28 crores in Q2 FY26, but had no effect on absolute profitability. * Strategic focus on core categories saw their contribution rise from 70% to 75%, with a target of 84-85% in 4-6 quarters. * Mamaearth brand is back to growth, showing high double-digit primary growth (adjusted for Neev return base) and aiming for double-digit growth by Q4 FY26. * Younger brands like BBlunt, Aqualogica, Dr. Sheth's, and Staze delivered 20% YoY growth. * Derma Co achieved ₹750 crores net sales ARR and became the number one sunscreen brand in India for 2024 (Euromonitor), with plans to expand into moisturizer and shampoo categories. * General trade distribution was strengthened, with 35% YoY increase in direct outlet billings and 80% of business now from direct distributors. * R&D efforts led to innovations like deep penetration formula for Derma Co and the first in vivo tested sunscreen with anti-pollution factor for Aqualogica. * The company launched Lumineve, a new prestige skincare brand focused on night care, exclusively with Nykaa, marking its first entry into prestige skincare. * Honasa also made a significant minority investment in Fang, an early-stage oral beauty brand, anticipating the rise of oral beauty into a $700 million opportunity by 2030. * Mamaearth achieved its goal of planting 1 million trees by 2025 and set a new goal to plant another 1 million trees in the next five years. * Management expects to maintain current margin ranges and targets an annual improvement of 50-100 bps in operating margin.
