Latest news with #HonasaConsumer
Time of India
3 days ago
- Business
- Time of India
FMCG segment seeing 'consumer shift' towards newer, regional brands: Honasa CEO Varun Alagh
The FMCG segment is witnessing a significant 'consumer shift' towards newer and regional brands, as consumers are increasingly seeking value and opting for localized preferences, Honasa Consumer Chairman and CEO & Co-founder Varun Alagh has said. Independence Day 2025 Modi signals new push for tech independence with local chips Before Trump, British used tariffs to kill Indian textile Bank of Azad Hind: When Netaji Subhas Chandra Bose gave India its own currency Regional brands are giving tough competition to the large established players with their aggressive pricing and better margins for the distributors, impacting the growth of large brands in the industry. "Overall, there is a consumer shift happening towards newer brands, regional brands... as large FMCG (companies) are not growing as strongly," Alagh told PTI. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Wildlife Cameras Capture What No One Should See Ohi Blog Undo The new FMCG brands are younger with new propositions and are working on strong vernacular strategies, he said. After the latest June quarter results, large FMCG companies such as Britannia, Dabur , Marico , HUL , etc have acknowledged competition from small regional brands in their pockets of influence in some of their product categories. Live Events When asked about the overall FMCG industry growth in the June quarter, Alagh said it has largely been "subdued" with no substantial volume gains. "But at least still in our case, in fact, volume growth is ahead of value growth. So volume growth is actually double-digit in nature. So all of our growth is driven by more consumers buying our products, and hence volume growth, which is a healthier sign," said Alagh. Moreover, Alagh also expects Honasa Consumer, which owns FMCG brands such as Mamaearth and The Derma Co., to have a double-digit volume growth in the remaining three quarters of FY'26. "... We believe that the next three quarters will be better than what the first quarter has been, and we should be in the double-digit zone for the next three quarters," he said. Recently, Britannia Industries has acknowledged competition from small players and its Vice Chairman & Managing Director Varun Berry in the latest earnings call, said that with a 'war chest' ready, it is ready to "fight many battles in smaller territories" against the regional players. The leading food company, which owns household brands as MarieGold, Tiger, Nutrichoice, and Good Day, is doing a "specific analysis on each one of these competitors," said Berry. The regional players are giving tough competition to the large established brands with their aggressive pricing and better margins for the distributors. HUL also said it faces competition in the category as detergent bar, which is "well spread out with multiple players, global players, local players, regional players". "So, it's a pretty spread out competition on the detergent bar," said HUL CFO Ritesh Tiwari in the June quarter earnings calls. Similarly, a home-grown FMCG major also faced competition in segments such as its 'Lal Tail' business, which was impacted in UP and Bihar by a small player, which took away its market share. "So, suddenly, a new player has come in, and we will correct that situation, which is a very localised problem, which has been identified, and we will correct it. So, there has been market share loss in our Lal Tail business, which we will correct going forward," said Dabur CEO Mohit Malhotra in the earnings call. Marico also faced challenges with its coconut oil brand Parachute and unreasonable competition in value-added hair oils. "As consumer pricing gradually normalises, we expect Parachute to chart meaningful recovery in volume growth given our competitive advantage under such conditions where the smaller players are out of the market," said its MD & CEO, Saugata Gupta. Nestle India 's former chairman and MD Suresh Narayanan had last month in an interview, told PTI that startups and regional brands are not only good for providing variety to consumers but also give established players the push to improve their product offerings.
Economic Times
7 days ago
- Business
- Economic Times
Nykaa, Mamaearth shares surge after Q1 profits
Shares of Nykaa parent FSN E-Commerce and Mamaearth owner Honasa Consumer closed at a high on Wednesday, a day after reporting profit growrh in the April-June quarter. Nykaa shares closed 4.93% higher at Rs 215.05. The stock touched an intrday high of Rs 220.75 after opening at Rs 215. The company closed the session with a market cap of Rs 61,520 crore. The counter has gained 31% year-to-date and 15% over the past few months. In the past week, it has risen nearly 3%. Shares of Mamaearth owner Honasa Consumer ended the day 6.15% higher at Rs 284.60. The stock cooled down slightly after hitting an intraday high of Rs 304.98 after opening at Rs 278.35. The market value of the company is Rs 9,256 crore. The Honasa shares have gained 14% year-to-date., but have fallen 39% over the past 12 months. Nykaa Q1 results FSN E-Commerce, parent of omnichannel beauty and lifestyle retailer Nykaa, reported a 79% rise in consolidated net profit to Rs 24 crore for the first quarter of fiscal 2026. Operating revenue rose 23% to Rs 2,155 crore. Its gross merchandise value (GMV) surged 26% to Rs 4,182 crore during the period Nykaa's mainstay beauty segment recorded a 26% GMV increase to Rs 3,208 crore, powered by robust growth in ecommerce, retail outlets, eB2B channels, and its in-house brands within the House of Nykaa portfolio. Nykaa also scaled its rapid delivery segment Nykaa Now to seven cities, including Mumbai, Delhi and Bengaluru, amid rising quick commerce the end of June quarter, Nykaa Now has delivered over 1.3 million orders. Also Read: Nykaa to acquire balance 40% stake in Nudge Wellness for Rs 15 lakh Mamaearth Q1 results Honasa Consumer, which owns brands like Mamaearth and The Derma Co., recorded a 2.7% rise in consolidated profit to Rs 41 crore, against a 7% rise in revenue to Rs 595 crore. Over the past few quarters, the Gurugram-based firm's financials were impacted by its offline distribution restructuring under Project Neev. This quarter marks a recovery from the slowdown that began in July-September brand saw double-digit growth across ecommerce, modern trade and general trade. The Derma Co's face cleanser became its third category to cross Rs 100 crore in annualised revenue runrate (ARR), after doubling company also expanded its retail footprint by 20% to over 2.4 lakh FMCG outlets.
Time of India
7 days ago
- Business
- Time of India
Nykaa, Mamaearth shares surge after Q1 profits
Academy Empower your mind, elevate your skills Shares of Nykaa parent FSN E-Commerce and Mamaearth owner Honasa Consumer closed at a high on Wednesday, a day after reporting profit growrh in the April-June quarter. Nykaa shares closed 4.93% higher at Rs 215.05. The stock touched an intrday high of Rs 220.75 after opening at Rs 215. The company closed the session with a market cap of Rs 61,520 counter has gained 31% year-to-date and 15% over the past few months. In the past week, it has risen nearly 3%.Shares of Mamaearth owner Honasa Consumer ended the day 6.15% higher at Rs 284.60. The stock cooled down slightly after hitting an intraday high of Rs 304.98 after opening at Rs 278.35. The market value of the company is Rs 9,256 Honasa shares have gained 14% year-to-date., but have fallen 39% over the past 12 E-Commerce, parent of omnichannel beauty and lifestyle retailer Nykaa, reported a 79% rise in consolidated net profit to Rs 24 crore for the first quarter of fiscal 2026. Operating revenue rose 23% to Rs 2,155 crore. Its gross merchandise value (GMV) surged 26% to Rs 4,182 crore during the periodNykaa's mainstay beauty segment recorded a 26% GMV increase to Rs 3,208 crore, powered by robust growth in ecommerce, retail outlets, eB2B channels, and its in-house brands within the House of Nykaa also scaled its rapid delivery segment Nykaa Now to seven cities, including Mumbai, Delhi and Bengaluru, amid rising quick commerce the end of June quarter, Nykaa Now has delivered over 1.3 million Consumer, which owns brands like Mamaearth and The Derma Co., recorded a 2.7% rise in consolidated profit to Rs 41 crore, against a 7% rise in revenue to Rs 595 the past few quarters, the Gurugram-based firm's financials were impacted by its offline distribution restructuring under Project Neev. This quarter marks a recovery from the slowdown that began in July-September brand saw double-digit growth across ecommerce, modern trade and general trade. The Derma Co's face cleanser became its third category to cross Rs 100 crore in annualised revenue runrate (ARR), after doubling company also expanded its retail footprint by 20% to over 2.4 lakh FMCG outlets.
Business Standard
7 days ago
- Business
- Business Standard
Honasa Consumer spurts after Q1 PAT jumps 65% QoQ
Honasa Consumer spurted 10.33% to Rs 295.80 after posting healthy revenue growth and a sharp sequential jump in profitability for the June quarter. The company's consolidated net profit rose 2.6% year-on-year to Rs 41 crore in Q1 FY26, supported by steady margins and higher sales. Sequentially, net profit jumped 65.4% from Rs 25 crore in Q4 FY25. Revenue from operations increased 7.4% year-on-year to Rs 595 crore from Rs 554 crore in Q1 FY25. On a sequential basis, revenue grew 11.7% from Rs 534 crore in Q4 FY25. Gross profit came in at Rs 424 crore, up 6.8% year-on-year and 12.3% sequentially, with the gross margin holding at 71.2% in Q1 FY26, up 48 bps YoY. Profit before tax stood at Rs 56 crore in Q1 FY26, up 72.8% from Q4 FY25 and 6.1% higher than Q1 FY25. EBITDA came in at Rs 46 crore, rising 69.7% sequentially but slipping 0.7% year-on-year. EBITDA margin improved to 7.7% in Q1 FY26 from 5.1% in the preceding quarter, though lower than 8.3% a year earlier. Employee benefit expenses were Rs 60 crore, accounting for 10.1% of revenue versus 8.9% in Q1 FY25. Advertisement expenses were Rs 206 crore or 34.6% of revenue, slightly lower than 36% in the year-ago period. On the business front, general trade distribution remained on a positive trajectory, with the companys direct distribution strategy driving a 50%+ year-on-year increase in direct outlets billed during Q1 FY26, strengthening reach and retail presence. Modern trade offtake registered over 20% year-on-year growth. According to NielsenIQ data, Mamaearths retail footprint expanded to 2,40,113 FMCG outlets across India as of June 2025, marking a 20% increase in distribution compared to last year. Younger brands in the portfolio continued their growth momentum, delivering more than 20% growth in Q1. Honasa Consumer is Indias largest digital-first beauty and personal care company, with a diverse portfolio of six brands.
News18
7 days ago
- Business
- News18
Honasa Shares Jump 13% On Strong Q1 Results; Jefferies Raises Target Price To Rs 400
Shares of Honasa Consumer, the parent company of beauty and personal care brand Mamaearth, surged 13%; Key points for investors Honasa Consumer Share Price: Shares of Honasa Consumer, the parent company of beauty and personal care brand Mamaearth, surged 13% to Rs 301 on the BSE on Tuesday after posting strong Q1 FY26 results. Global brokerage Jefferies reiterated its Buy rating with a target price of Rs 400, citing a 7% year-on-year (YoY) revenue growth, in line with estimates. While gross margins contracted by ~50 basis points (bps) YoY and advertising & promotion expenses rose 3%, EBITDA margin declined ~60 bps YoY to 7.7% but improved 2.6 percentage points sequentially. EBITDA remained flat YoY, but net profit posted marginal growth, both beating estimates. Jefferies raised its EBITDA forecast by 3–11%, noting that Honasa remains a 'high-risk, high-reward play." The brokerage highlighted that unseasonal rains weighed on sunscreen sales, limiting overall revenue growth to 7%, yet Honasa delivered a sequential EBITDA margin improvement—a notable beat. For the quarter ended June 2025, operating revenue rose 7% YoY to Rs 595 crore, supported by growth in focus categories, optimised operations, and scale benefits across brands. Net profit came in at Rs 41 crore, slightly higher than Rs 40 crore a year earlier, and up 65% sequentially from Rs 25 crore in Q4 FY25. Total expenses rose to Rs 563 crore from Rs 520 crore YoY, with major spends on traded goods purchases (Rs 171 crore), employee benefits (Rs 60 crore), and other costs (Rs 318 crore). 'It is a volume-led growth. This could have been higher if the early onset of the monsoon hadn't impacted our largest category—sunscreens," said cofounder and CEO Varun Alagh during the post-earnings call. EBITDA stood at Rs 47 crore, with margins expanding to 8% on the back of gross margin gains, increased offline sales contribution, and operating leverage. Alagh added that the company will continue focusing on efficiency to ensure bottom-line growth outpaces topline growth. Looking ahead, Honasa expects double-digit full-year growth in FY26, a rebound from FY25's 8% revenue rise. Mamaearth remains the flagship brand, while newer labels like The Derma Co, Aqualogica, Dr Sheth's, Bblunt, and Staze Beauty are growing over 20% YoY. Jefferies noted that focus categories, which account for 80% of revenues, recorded double-digit growth in Q1, driven by strong e-commerce performance and modest gains in other channels. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
