Honasa Consumer expects its profit margin to reach 15% by FY31 as it works towards its ₹5,500 crore revenue target.
Honasa Consumer, the parent company of Mamaearth, is targeting revenue of around ₹5,550 crore by FY31 as it looks to more than double the scale of its business over the next five years.
The company also expects its EBITDA margin to reach 15% during the same period, as it focuses on expanding its brands while improving profitability through scale and a stronger product mix.
Founders Varun Alagh and Ghazal Alagh outlined the targets in their message to shareholders in Honasa Consumer’s FY26 annual report. The company said its ambition is to become the fastest-growing Indian FMCG company to reach the ₹5,000 crore revenue milestone.
Honasa’s official annual report repository includes the FY2025-26 annual report and related investor disclosures.
Honasa Targets ₹5,550 Crore Revenue by FY31
The founders said Honasa expects to reach approximately ₹5,500 crore in revenue by FY31 by building brands that have strong consumer demand.
The target represents a substantial increase from the company’s current scale. Honasa Consumer reported total income of ₹475.53 crore for FY26, according to the figures provided in its annual report disclosures.
The founders, however, said revenue and margin targets should be viewed as outcomes rather than the central objective of the business.
“What we are really building is a company that can find a need, prove a product, scale a brand and make it profitable faster than anyone else and then simply do it again,” they said.
That strategy reflects Honasa’s effort to repeat the process across multiple beauty and personal-care categories rather than relying on Mamaearth alone.
15% EBITDA Margin Is Another Key Target
Alongside revenue growth, Honasa is targeting an EBITDA margin of 15% by FY31.
The founders said the company expects to unlock another 500 basis points of margin improvement as its product mix and operating scale improve.
The focus on profitability comes as Indian consumer and beauty companies increasingly balance expansion with operating discipline. Honasa’s own investor disclosures show that the company has been working on sharper category segmentation, brand building and efficiency across its portfolio. In Q1 FY26, for example, the company reported an EBITDA margin of 7.7%.
Reaching 15% would therefore require a significant improvement in operating profitability alongside the planned revenue expansion.
Focus Remains on a Handful of Categories
Honasa does not plan to spread its growth strategy evenly across every possible beauty category.
The founders said the company’s growth will remain anchored around a focused group of categories, including face cleansers, shampoos, sunscreens, moisturisers, face serums, lipsticks and baby care.
These categories currently account for about 80% of Honasa’s revenue.
The company plans to deepen its presence within these established areas while also entering newer segments across existing and emerging categories. This gives Honasa room to expand its product portfolio without moving too far away from categories where it already has consumer recognition and distribution.
Mamaearth Remains Part of a Wider Brand Portfolio
Although Mamaearth is the company’s best-known brand, Honasa has increasingly built a broader portfolio of consumer brands.
The company also operates brands including The Derma Co, BBlunt, Aqualogica and Staze, among others. Its strategy has been to build individual brands around specific consumer needs and categories rather than rely on a single flagship business.
The approach was visible in the company’s FY26 strategy as well. Honasa said its focus categories were contributing more than 80% of revenue, while these segments continued to deliver double-digit growth in Q1 FY26.
The Derma Co, in particular, has become an important growth engine. In Q1 FY26, its face cleanser category grew more than 100% year on year, while its serums and sunscreens had already crossed ₹100 crore in annual recurring revenue.
Scaling Faster While Improving Efficiency
Honasa’s FY31 plan will require the company to achieve growth without allowing costs to rise at the same pace.
That is why the founders’ comments place equal emphasis on finding consumer needs, developing successful products, scaling brands and making them profitable.
The company’s recent financial disclosures point to a similar focus on operational efficiency. Honasa has been working on category-level growth, tighter execution and stronger gross margins while continuing to invest in brand building.
This model could become increasingly important as Honasa moves towards a much larger revenue base. Higher volumes can improve operating leverage, but only if the company manages marketing, distribution and other operating costs effectively.
What Honasa’s FY31 Ambition Means
Honasa’s ₹5,550 crore revenue target is not simply a plan to make Mamaearth bigger.
The broader ambition is to create a multi-brand consumer company capable of repeatedly identifying emerging consumer needs, launching products, building brands, and scaling them profitably.
If the company reaches its FY31 target, it would represent a major expansion from its current scale. At the same time, achieving a 15% EBITDA margin would demonstrate that growth has translated into a stronger underlying business rather than simply higher sales.
For Honasa Consumer, the next five years will therefore be about balancing two objectives that can be difficult to achieve together: growing rapidly and becoming meaningfully more profitable.
The founders’ message suggests that the company sees the two as connected. More focused categories, stronger brands and greater scale are expected to drive both the ₹5,500 crore revenue ambition and the 15% margin target.
Source: NDTV Profit
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