Honasa Consumer Ltd Q1 FY26 + 138x P/E + 38% Ad Spends = BPC ka IPL Match Without Cheerleaders
1. At a Glance
Honasa Consumer Ltd (aka the parent of Mamaearth, The Derma Co., Dr. Sheth’s, BBlunt aur dher saare Insta-reels ke skincare stars) is now India’s largest digital-first BPC company by revenue. But wait—largest by sales ≠ largest by profit. With P/E 138, ROE 5.5%, and ad spend > 38% of sales, this company is basically a startup that refuses to grow up. The numbers scream “high growth” while the balance sheet whispers “bhai, chill, main abhi naya hoon.”
2. Introduction
Picture this: A desi unicorn IPO with Mamaearth’s toxin-free facewash, derma serums, ayurvedic creams, and enough ad campaigns to fill your entire YouTube pre-roll queue. That’s Honasa Consumer.
Incorporated in 2016, this company didn’t sell soap—they sold hope. Millennials loved the “natural” tagline, Gen Z bought “active ingredients,” and boomers clicked “cash on delivery.” In a country where everyone from your dadi to your neighbor’s cat swears by nimbu-mirchi totka, Honasa made natural remedies cool enough to fit into your Instagram grid.
But here’s the plot twist: despite sales of nearly ₹2,000 Cr, profits are thinner than your friend’s patience when you say “let’s split the Uber bill.” At ₹71 Cr PAT in FY25, the margins are so slim even a wafer packet looks obese in comparison.
And yet, the market still values them at close to ₹10,000 Cr, as if Mamaearth invented the cure for hairfall, pimples, and exam failure stress combined.
3. Business Model – WTF Do They Even Do?
At its core, Honasa runs a brand factory. The strategy is simple:
Launch products at lightning speed (122 new launches in CY23, bro that’s one every 3 days).
Shout on every platform (YouTube, Insta, Zepto tie-ups, celebrity ads).
Expand offline like crazy (already in 2 lakh+ FMCG outlets).
Milk Mamaearth while feeding Derma Co., Ayuga, and Aqualogica.
Think of it like Marvel’s Avengers. Mamaearth is Iron Man, The Derma Co. is Doctor Strange, Dr. Sheth’s is Thor (old but powerful), BBlunt is Hulk (salon se nikalke dukaan mein), and Ayuga is that new sidekick nobody remembers.
But don’t be fooled. Honasa isn’t really in the “beauty products” business. It’s in the “build brand → sell SKU → burn cash on ads → repeat” business. Basically, they’re Zomato of facewash.
Question to readers: If 38% of revenue goes into ads, should we call it a BPC company or an ad agency with shampoo sidelines?
4. Financials Overview
Metric
Latest Qtr (Q1 FY26)
YoY Qtr (Q1 FY25)
Prev Qtr (Q4 FY25)
YoY %
QoQ %
Revenue
₹584 Cr
₹544 Cr
₹523 Cr
7.4%
11.7%
EBITDA
₹42 Cr
₹42 Cr
₹24 Cr
Flat
75.0%
PAT
₹39.9 Cr
₹39 Cr
₹25 Cr
2.3%
59.6%
EPS (₹)
1.23
1.21
0.76
1.6%
61.8%
Annualised EPS = ₹1.23 × 4 = ₹4.92. At CMP ₹301 → P/E = 61.1x (much lower than reported 138x because screener ka EPS TTM hai, aur wo thoda dukhi hai).
Witty Commentary: Imagine studying whole year for UPSC and improving score by just 1.6% YoY. That’s Honasa’s PAT growth.
