Honasa profit rises YoY, but margin falls from Q1 peak
Revenue grew faster than expenses YoY, but a sequential sales decline and higher tax rate pulled profit down from Q1.
Filed 06 Nov 2026, 17:54 IST · after market close · Honasa Consumer Ltd (HONASA)
Key takeaways
- Honasa's consolidated net profit fell 19.02% QoQ as operating margin narrowed 1.87 percentage points to 12.71%.
- Year on year, revenue grew 35.89% faster than expenses at 30.15%, lifting operating margin by 3.86 percentage points.
- Other income contributed 21.86% of pre-tax profit, while the QoQ tax-rate increase of 3.18 percentage points added pressure.
Price around the results
Sequential slowdown interrupts Honasa's margin climb
The consolidated sequential setback came from revenue falling 3.28% while expenses declined only 1.16%, causing operating profit to drop 15.68%. Year on year, revenue increased 35.89% against expense growth of 30.15%, which lifted operating margin by 3.86 percentage points and net profit by 86.72%.
Other income and tax rate reduced profit quality
Other income accounted for 21.86% of pre-tax profit, making a material contribution beyond operating earnings. The tax rate rose 3.18 percentage points sequentially and 1.70 percentage points year on year, limiting the conversion of operating gains into net profit.
Margin remains above the 64-peer FMCG median
Operating margin has risen from 7.70% in Q1FY26 to 14.58% in Q1FY27 across four consecutive quarter-on-quarter increases, before falling to 12.71% this quarter. Even after that decline, Honasa's margin was 2.02 percentage points above the 10.69% median for the 64 FMCG peers that had reported.
Results filed after market close
Honasa filed these consolidated results after market close on 06 Nov 2026 at 17:54 IST, so there is no post-results price move to assess yet. Across the eight previous result reactions, the stock rose after seven and its median absolute move was 6.62%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹731 cr | ₹756 cr | -3.28% | +35.89% |
| Other income | ₹22 cr | ₹23 cr | -2.39% | +9.38% |
| Expenses | ₹638 cr | ₹646 cr | -1.16% | +30.15% |
| Operating profit | ₹93 cr | ₹110 cr | -15.68% | +95.03% |
| Operating margin (%) | 12.71% | 14.58% | — | — |
| Interest | ₹3 cr | ₹3 cr | +4.97% | -3.94% |
| Depreciation | ₹11 cr | ₹10 cr | +4.58% | -6.56% |
| Profit before tax | ₹101 cr | ₹119 cr | -15.46% | +91.09% |
| Tax | ₹28 cr | ₹29 cr | -4.34% | +103.77% |
| Net profit | ₹73 cr | ₹90 cr | -19.02% | +86.72% |
| EPS (₹) | ₹2.24 | ₹2.77 | -19.13% | +85.12% |
Operating margin of 12.71% compares with a Fast Moving Consumer Goods sector median of 10.69% across 64 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 12.71% after the 1.87-percentage-point sequential decline.
- Whether revenue growth remains ahead of expense growth after the latest 35.89% versus 30.15% year-on-year comparison.
- Whether other income remains below or above its current 21.86% share of pre-tax profit.