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Over FY24-27E, we expect Honasa to deliver a sector-leading 21% revenue CAGR. Growth should moderate in the flagship Mamaearth brand (~8% cagr) given its absolute scale, although new brands should continue to ramp-up at a rapid pace.

Growth should be accompanied by further improvement in profitability led by scale-benefits over key cost items notably ad-spends. We expect Honasa to reach double-digit Ebitda margins by FY26e vs. 7% in FY24. This should enable a strong ramp-up in absolute Ebitda and pre-exceptional EPS, both rising sharply over FY24 levels.

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