Altman Z″
Needs current assets and current liabilities.
A plain-language read of the business, how it actually earns, where the edge is, and the economics of every reported segment — taken from the annual report and investor presentation, not a one-line industry label.
How to read this: Price shows the closing price with its 50-day (amber) and 200-day (grey) averages; bars at the bottom are daily volume, green on up days and red on down days; dashed lines mark the 52-week high and low. vs Nifty 50 starts both at 100 so you can see which did better over the period. P/E shows what the market paid for each rupee of profit, inside the band it usually trades in. Drawdown shows how far below its best price the share has been. Hover anywhere for the numbers on that day.
The three to six things that actually matter about this company, each with the exact filing and note it came from — never a fact without the context that makes it meaningful.
What the numbers mean when read together — computed from the filings, not a score.
Operating cash is 71% of trailing profit — a modest gap worth keeping an eye on.
Why this reading: Noted with caution: a mild gap that is commonly benign (working-capital timing) but worth tracking across years.
Operating cash ₹141 cr vs trailing profit ₹200 cr. Gaps in the 0.5–0.9 range are usually timing, occasionally a early tell.
Both revenue and profit grew over the last year (21.1% and 239.7%) — growth is translating to the bottom line.
Why this reading: A positive signal in the numbers, shown for balance alongside the concerns.
Trailing revenue ₹2,553 cr, trailing profit ₹248 cr. Profit growing at least as fast as revenue indicates operating leverage or pricing power.
Free cash flow is positive and consistent — the business funds itself after capex.
Why this reading: A positive signal in the numbers, shown for balance alongside the concerns.
Latest free cash flow ₹134 cr. Negative in only 1 of 6 years. A self-funding business needs less external capital and dilutes less.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Piotroski F-Score — fundamental momentum — Joseph Piotroski, University of Chicago, 2000, in a study of whether accounting signals could improve returns among cheap stocks.
Nine yes-or-no tests across profitability, leverage and operating efficiency. Each pass scores one. It asks a narrow question: is this business getting better or worse on its own terms, year over year?
How to read it7 or more suggests improving fundamentals; 3 or fewer suggests deterioration. It measures direction, not quality — a weak company improving can score higher than a strong one holding steady.
Where it failsA single year of comparison, so one unusual year distorts it. Says nothing about valuation, competitive position or management. Piotroski designed it to rank already-cheap stocks, not to judge a company in isolation.
Needs trade receivables, current assets, other expenses.
Accruals are 3.0% of assets. Free cash flow negative in 1 of 6 years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
Capital and revenue are growing at broadly similar rates — the asset base is being used, not just added to.
cumulative operating cash flow ÷ cumulative net profit
₹501 cr ÷ ₹-1,085 cr, over 6 years
-0.46×
Below 1.0 and persistent means profit is being recognised before the cash arrives.(net profit − operating cash flow) ÷ average total assets
(₹200 − ₹141) cr ÷ average assets
3.0%
The share of profit that is accounting entries rather than cash. Above ~10% is where accruals start to dominate.net margin × asset turnover × leverage
8.4% × 1.14 × 1.49
14.2%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹270 cr ÷ ₹13 cr
20.77×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹135 cr ÷ ₹1,411 cr
0.10×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +94% vs revenue +60%, FY2023 to FY2026
34pp gap
Money going in far faster than revenue coming out. For an incubator this is expected — the test is whether it eventually converts.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
The growth rate that makes today's market value equal the discounted cash flows, at a 11.5% discount rate and 4.0% terminal growth. Not a forecast — the arithmetic of what is already in the price. Compare it with what the business has actually delivered.
Reverse DCF — the growth already in the price — A standard inversion of discounted cash flow, used to avoid the forecasting problem entirely.
Instead of forecasting cash flows and deriving a value, it takes today's market value as given and solves for the growth rate that would justify it. The output is not a view — it is the arithmetic of what the market is currently assuming.
How to read itCompare it with what the business has actually delivered. A price implying 30% a year against a decade of 15% is a demanding assumption; the reverse is a modest one.
Where it failsUseless when free cash flow is negative or unusually depressed, which is common mid-capex. Highly sensitive to the discount rate — a point either way moves the answer materially.
Against a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%.
Cost of debt — Interest expense over average borrowings — the effective rate the company actually pays.
What the lenders charge, which is a market verdict on credit quality that no rating agency delay affects.
How to read itAgainst a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%. Read the direction over years as much as the level.
Where it failsUnderstated where a large share of interest is capitalised into projects under construction. Not meaningful for lenders, where interest is cost of goods.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Median of the companies we hold in the same sector (Fast Moving Consumer Goods). Every figure on both sides is the live feed's trailing twelve months, so the two are measured the same way whatever depth of extraction this company has had. A number only means something next to something else — expensive against the market and cheap against peers are different facts.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter rose from 34.97% to 35.47% across these quarters.
FII trimmed from 15.50% to 13.64% across these quarters.
MF rose from 2.51% to 6.10% across these quarters.
Other trimmed from 47.02% to 44.79% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Debtor days
How long customers take to pay | 27 | 28 | 32 | 30 | 23 | 30 |
| Inventory days
How long stock sits before it sells | 114 | 86 | 99 | 83 | 105 | 92 |
| Payable days
How long the company takes to pay suppliers | 221 | 219 | 161 | 185 | 212 | 193 |
| Cash conversion cycle
Debtor + inventory − payable days | -80 | -105 | -30 | -71 | -84 | -71 |
| Working capital days | -2 | -12 | 8 | -10 | -17 | -9 |
| ROCE %
Return on capital employed | — | 5.0% | 3.0% | 16.0% | 8.0% | 19.0% |
| Metric | Q2 FY27 | Q2 FY26 |
|---|---|---|
| Stores | 320,000 | — |
| Gross margin | 69.94% | 70.45% |
| Inventory days (days) | 28.47 | — |
| Underlying Volume Growth (UVG) | 31.3% | — |
From the quarterly results and the earnings call, read by FinMinutes. Latest quarter, read in full.
Read using the Consumer discretionary and retail framework (named in the filing read). Primary valuation lens: P/E against same-store growth.
Read more closely in this sector: Growth from new stores against same stores · Inventory build against sales.
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue from operations | 460 | 943 | 1,493 | 1,920 | 2,067 | 2,392 |
| Other income | 12 | 21 | -132 | 49 | 77 | 79 |
| Depreciation | 2 | 7 | 25 | 31 | 45 | 44 |
| Finance cost | 1 | 3 | 7 | 9 | 13 | 13 |
| Profit before tax | -1,325 | 22 | -141 | 147 | 90 | 257 |
| Net profit (owners) | -1,332 | 14 | -151 | 111 | 73 | 200 |
| EPS (₹) | -101.23 | 1.18 | -10.47 | 3.45 | 2.24 | 6.15 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Metric | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 496 | 488 | 471 | 554 | 462 | 518 | 534 | 595 | 538 | 602 | 657 | 756 |
| Other Income | 7 | 11 | 19 | 19 | 20 | 19 | 21 | 24 | 20 | 16 | 19 | 23 |
| Expenses | 456 | 454 | 438 | 508 | 493 | 491 | 507 | 549 | 490 | 536 | 580 | 646 |
| Depreciation | 6 | 8 | 10 | 9 | 11 | 13 | 12 | 11 | 12 | 11 | 11 | 10 |
| Finance cost | 2 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 |
| Profit before tax | 39 | 35 | 39 | 52 | -24 | 29 | 32 | 56 | 53 | 67 | 82 | 119 |
| Net Profit | 29 | 26 | 30 | 40 | -19 | 26 | 25 | 41 | 39 | 50 | 69 | 90 |
| EPS | 2.16 | 0.80 | 0.94 | 1.24 | -0.57 | 0.80 | 0.77 | 1.27 | 1.21 | 1.54 | 2.13 | 2.77 |
| Item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Equity Capital | 0 | 0 | 136 | 324 | 325 | 325 |
| Reserves | -1,765 | -1,087 | -1,323 | 771 | 855 | 1,086 |
| Borrowings | 1,954 | 1,853 | 1,885 | 131 | 136 | 135 |
| Net block | 21 | 342 | 252 | 299 | 302 | 489 |
| CWIP | 0 | 2 | 0 | 0 | 0 | 0 |
| Investments | 164 | 339 | 260 | 292 | 305 | 272 |
| Total Assets | 303 | 1,036 | 986 | 1,640 | 1,808 | 2,107 |
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Cash from operations | 30 | 45 | -52 | 235 | 102 | 141 |
| Cash from investing | -21 | -505 | 40 | -470 | -145 | -17 |
| Cash from financing | -1 | 481 | -14 | 337 | -31 | -38 |
| Free cash flow | 29 | 42 | -63 | 224 | 82 | 134 |
| Net change in cash | 8 | 21 | -26 | 102 | -74 | 86 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
The part no one reads: the auditor's opinion, the contingent liabilities buried in the notes, the covenants, and the claims in the deck placed beside the figures that test them.
Where analysts pressed management on the earnings call, and exactly how management answered — the questions that were hardest to answer are usually the ones that matter.
These are coverage counts, not ratings. Each one asks a fixed set of questions of the filings and reports how many the company answered. A company that discloses nothing counts nothing here — that is a statement about the disclosure, not about the business.
The same read, applied to the companies this one competes with.
Honasa Consumer Ltd. reported revenue of ₹731 cr for July to September 2026, +35.9% on the year and −3.3% on the quarter. That is faster than this quarter has grown in recent years (+4.8% on average), so the year-on-year number is not just the season. Over the last four quarters revenue comes to ₹2,746 cr, +25.7% on the four before.
Operating profit (EBITDA) was ₹92.9 cr, a margin of 12.7%, +385 bps on the year and −187 bps on the quarter. Over the last 8 quarters the margin has ranged from 5.0% to 14.6%, averaging 9.6%. Operating costs grew +30.1% against revenue growth of +35.9%, so more of each rupee of sales reached operating profit.
Net profit was ₹73.3 cr, +86.7% on the year and −19.0% on the quarter, with earnings per share of ₹2.24. Profit before other income, one-offs and tax grew faster, at +142.4%; other income, one-offs or tax held the headline back. The tax rate was 27% against an average of 21% over the previous 7 quarters, which weighed on profit this quarter. Profit over the last four quarters totals ₹283 cr, +115.4% on the four before.
Of the 13 companies in Consumer discretionary and retail that have reported Q2 FY27 so far, Honasa Consumer Ltd. ranks 3rd on revenue growth; the sector median is +15.8%. Its margin moved +385 bps on the year against a sector median of +178 bps.
Retail growth comes from new stores and from sales at existing stores; the statements show the total, the filing shows how much each contributed.
On earnings per share of ₹8.68 over the last four quarters, the stock at ₹452.95 trades at 52.2 times trailing earnings.
No check fired. That is a statement about the checks below, not a verdict on the company.
Core profit grew faster than reported profit: one-offs held the headline down.
Source: Results filing
Could not run on this quarter: Exceptional items that recur, Borrowing while holding cash, Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery. The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Trade receivables | ₹239 cr | ₹198 cr | ▲ 20.6% |
| Inventory | ₹232 cr | ₹165 cr | ▲ 40.6% |
| Cash | ₹119 cr | ₹119 cr | ▼ 0.3% |
| Bank balances | ₹29.4 cr | ₹94.5 cr | ▼ 68.9% |
| Trade payables | ₹426 cr | ₹378 cr | ▲ 12.8% |
| Net block | ₹20.9 cr | ₹22.2 cr | ▼ 5.6% |
| Equity | ₹1,486 cr | ₹1,412 cr | ▲ 5.3% |
| Total assets | ₹2,308 cr | ₹2,092 cr | ▲ 10.3% |
| Cash flow, year to date | This year | Last year |
|---|---|---|
| Operating cash flow | ₹92.9 cr | ₹0.2 cr |
| Capital expenditure | −₹4.7 cr | −₹4.5 cr |
| Investing cash flow | −₹78.4 cr | ₹10.7 cr |
| Financing cash flow | −₹14.9 cr | −₹17.7 cr |
Operating cash flow was 0.57× profit. Receivables at 29 days of sales (−1 days against the last year end). Inventory at 28 days of sales (+3 days).
Other matter 1: “”4 subsidiaries, whose unaudited interim financial results include (before consolidation adjustment) total assets of Rs 1,490.40 million as at September 30, 2026, total revenues of Rs 571.05 million and Rs 1,201.53 million, total net profit after tax of Rs. 52.00… Read in full
4 subsidiaries, whose unaudited interim financial results include (before consolidation adjustment) total assets of Rs 1,490.40 million as at September 30, 2026, total revenues of Rs 571.05 million and Rs 1,201.53 million, total net profit after tax of Rs. 52.00 million and Rs 112.95 million and total comprehensive income of Rs 52.01 million and Rs 112.88 million for the quarter ended September 30, 2026 and for the period from April 01, 2026 to September 30, 2026 respectively and net cash outflow of Rs 81.11 million for the period from April 01, 2026 to September 30, 2026, as considered in the Statement which have been reviewed by their respective independent auditors.
Other matter 2: “”1 joint venture, whose unaudited interim financial results include Group's share of net profit of Rs 2.71 million and Rs 3.28 million and Group's share of total comprehensive income of Rs 2.72 million and Rs 3.28 million for the quarter… Read in full
1 joint venture, whose unaudited interim financial results include Group's share of net profit of Rs 2.71 million and Rs 3.28 million and Group's share of total comprehensive income of Rs 2.72 million and Rs 3.28 million for the quarter ended September 30, 2026 and for the period from April 01, 2026 to September 30, 2026 respectively, as considered in the Statement whose interim financial results, other financial information has been reviewed by its respective independent auditor.
Other matter 3: “”2 subsidiaries, whose interim financial results include (before consolidation adjustment) total assets of Rs 0.09 million as at September 30, 2026, and total revenues of Rs Nil and Rs Nil, total net loss after tax of Rs. 0.06 million and… Read in full
2 subsidiaries, whose interim financial results include (before consolidation adjustment) total assets of Rs 0.09 million as at September 30, 2026, and total revenues of Rs Nil and Rs Nil, total net loss after tax of Rs. 0.06 million and Rs 0.06 million and total comprehensive loss of Rs. 0.06 million and Rs 0.06 million for the quarter ended September 30, 2026 and for the period from April 01, 2026 to September 30, 2026 respectively and net cash inflow of Rs 0.08 million for the period from April 01, 2026 to September 30, 2026.
Filing p. consolidated limited review report p.1-3
₹27.9 cr still unused. “Utilised ₹322.61 crore out of net IPO fresh issue proceeds of ₹350.49 crore up to September 30, 2026; unutilised balance of ₹27.88 crore earmarked for EBO and salon expansions. No deviation reported.”
Dubai Court of Cassation upheld Court of Appeal judgment limiting compensation payable to RSM General Trading LLC to AED 1.75 million (₹4.28 crore); no material financial impact expected. (p. consolidated note 5)
Incorporated wholly owned subsidiary Honasa Health Private Limited on July 07, 2026, to undertake B2C nutraceuticals business. (p. consolidated note 11)
Approved draft Scheme of Amalgamation of B:Blunt-Spratt Hairdressing Private Limited into Bhabani Blunt Hair Dressing Private Limited (BBlunt). (p. consolidated note 10)
Tax: Consolidated tax expense of ₹27.55 crore (current tax ₹28.34 crore, deferred tax credit ₹0.79 crore) on Profit before tax of ₹100.80 crore for Q2 FY27
| Metric | Q2 FY27 | Q2 FY26 |
|---|---|---|
| Stores | 320,000 | — |
| Gross margin | 69.94% | 70.45% |
| Inventory days (days) | 28.47 | — |
| Underlying Volume Growth (UVG) | 31.3% | — |
Worked out from filed numbers. Consolidated Gross Margin: Gross margin = (Revenue ₹731.19 crore - COGS ₹219.80 crore) / ₹731.19 crore * 100 = 69.94% (presentation reports ~70.0%) · Inventory Days: Inventory (₹231.99 crore) / (Annualised H1 FY27 Revenue ₹1,487.13 crore * 2) * 365 = 28.47 days
Revenue from operations grew 35.9% YoY to ₹731.19 crore in Q2 FY27 with 31.3% Underlying Volume Growth (UVG). Growth was driven by offline outlet expansion (+26% YoY reach to ~3.2 lakh outlets) and same-store throughput growth (+30%+ YoY secondary sales per retailer in direct GT outlets).
High volume-led growth (+31.3% UVG) supported by expanding direct outlet reach and higher sales throughput per store.
Consolidated inventory increased to ₹231.99 crore as of Sept 30, 2026 (vs ₹165.05 crore as of March 31, 2026) to support 35.9% top-line expansion, maintaining low inventory days of 28.47 days.
Inventory expansion aligned with rapid top-line scaling while keeping working capital days lean.
Read using the Consumer discretionary and retail framework (named in the filing read). Primary valuation lens: P/E against same-store growth.
Read more closely in this sector: Growth from new stores against same stores · Inventory build against sales.
| Metric | Guidance | For | Against earlier guidance |
|---|---|---|---|
| EBITDA Margin Target Range | 12 to 14 | Medium term | unchanged or first given |
| FMCG Retail Outlet Reach Target | 500000 | Medium term | unchanged or first given |
Held for next quarter's said-then-did check.
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹488 cr | ₹471 cr | ₹554 cr | ₹462 cr | ₹518 cr | ₹534 cr | ₹595 cr | ₹538 cr | ₹602 cr | ₹657 cr | ₹756 cr | ₹731 cr |
| YoY | — | — | +19% | −7% | +6% | +13% | +7% | +16% | +16% | +23% | +27% | +36% |
| EBITDA margin | 7.0% | 7.0% | 8.3% | −6.7% | 5.0% | 5.1% | 7.7% | 8.9% | 10.8% | 11.7% | 14.6% | 12.7% |
| Other income, % of PBT | 31% | 49% | 37% | — | 66% | 66% | 43% | 38% | 24% | 23% | 19% | 22% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 25% | 22% | 23% | — | 12% | 22% | 26% | 26% | 25% | 15% | 24% | 27% |
| Net profit | ₹26.0 cr | ₹30.0 cr | ₹40.0 cr | −₹19.0 cr | ₹26.0 cr | ₹25.0 cr | ₹41.0 cr | ₹39.2 cr | ₹50.0 cr | ₹69.0 cr | ₹90.5 cr | ₹73.3 cr |
| YoY | — | — | +60% | −166% | 0% | −17% | +2% | — | +92% | +176% | +121% | +87% |
| Core profit YoY | — | — | +57% | −238% | −58% | −45% | −3% | — | +410% | +473% | +202% | +142% |
| EPS | ₹0.80 | ₹0.94 | ₹1.24 | −₹0.57 | ₹0.80 | ₹0.77 | ₹1.27 | ₹1.21 | ₹1.54 | ₹2.13 | ₹2.77 | ₹2.24 |
| Flags | 1 | 1 | ✓ | 2 | 2 | 1 | ✓ | 1 | 1 | ✓ | ✓ | ✓ |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.