Honasa Consumer Ltd (NSE:HONASA) Q3 2026 Earnings Call Highlights: Record Revenue and Strategic ...

This article first appeared on GuruFocus .

Release Date: February 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Honasa Consumer Ltd ( NSE:HONASA ) reported its highest ever quarterly revenue with a growth of 21.7%.

• The company achieved its highest ever EBITDA and PAT, indicating strong financial performance.

• E-commerce and modern trade channels showed robust growth, with over 20% and 25% growth respectively.

• The company's focus on core categories has paid off, with these categories growing at 25%+.

• Honasa Consumer Ltd ( NSE:HONASA ) has successfully expanded its direct distribution, now contributing to 80% of revenue.

Negative Points

• There was a 28% revenue recognition impact due to changes in Flipkart's revenue recognition laws.

• Despite strong growth, the company faces competitive pressure from traditional FMCG companies increasing their focus on online channels.

• The gross margin remained flat year-over-year, indicating potential challenges in cost management.

• Employee costs have risen sharply due to ESOP provisioning and enhanced variable pay.

• Non-focus categories still constitute 25% of sales, which may dilute the focus on core growth areas.

Q & A Highlights

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Q: How is the market share shaping up in the sunscreen category given the increased competition? A: According to external data from Euromonitor, Dermaco is now the number one sunscreen brand in the country, surpassing legacy brands. Our brands continue to perform strongly across platforms, and we are using multiple brands to win in the sunscreen portfolio. - Varun Alag, CEO

Q: With the strong performance this quarter, do you expect this growth trend to continue in the coming quarters? A: We are confident that our fundamentals and strategies will continue to deliver strong outcomes. The growth is driven by share gains in core categories, and we expect this trajectory to continue. - Varun Alag, CEO

Q: Can you elaborate on the distribution strategy and its impact on growth? A: Our distribution strategy is not just about expanding reach but also ensuring pull in the market. We focus on establishing strong online presence before moving offline, ensuring natural pull and better execution. This strategy has helped us build confidence among retailers and achieve better margins. - Varun Alag, CEO

Q: How do you plan to manage the focus on multiple brands and ensure growth across all of them? A: We have structured the organization with clear accountability for each brand and channel. This ensures that each brand has dedicated focus and resources to drive growth. Our long-term goals require us to be market leaders in each category, and we are building the organization to achieve that. - Varun Alag, CEO