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Honasa Swings to Q2 Profit as Quick Commerce Scales and Premium Bets Expand

Profit reached Rs 39.2 crore on year-over-year revenue growth of 16%.

Overview

  • Revenue from operations came in at about Rs 538 crore, up 16.5% year on year but down roughly 10% sequentially, with profit at Rs 39.22 crore versus a loss a year earlier.
  • Management said a Flipkart settlement change reduced reported revenue by Rs 28 crore with no impact on profit, implying adjusted revenue of roughly Rs 566 crore.
  • Quick commerce now contributes around 10% of sales and is the fastest-growing channel, supporting scale for lower-priced products.
  • Honasa launched LuminĂ©ve as a prestige, night-focused skincare line exclusively on Nykaa and invested Rs 10 crore for a minority stake in an oral-care startup focused on teeth whitening.
  • Jefferies raised its target price to Rs 450, indicating about 58% upside potential and pointing to a business turnaround and strengthening core categories.