Honasa Consumer has cancelled its proposed acquisition of a 58% stake in Fluence Pharma after the closing conditions under the share purchase agreement were not fulfilled. In a regulatory filing on August 25, the company officially announced the termination of the deal. The acquisition was originally announced on June 23, with the company having planned to acquire a majority 58% stake in Fluence Pharma through a secondary purchase at an enterprise value of ₹135 crore, subject to closing adjustments and fulfilment of conditions precedent. The company did not disclose which specific closing conditions were not met, though the development comes just over two months after the initial announcement. The proposed transaction had also included plans for Honasa to acquire the remaining 42% stake in Fluence through secondary purchases in two tranches over five to seven years after completion of the initial acquisition.
Despite the acquisition cancellation, Honasa Consumer delivered robust financial results for Q1FY27. As reported by CNBC TV18, the company's net profit surged 118.4% year-on-year to ₹90.2 crore compared with ₹41.3 crore in the year-ago quarter. Revenue increased 27% to a record ₹756 crore from ₹595.2 crore, while EBITDA rose significantly to ₹110.1 crore from ₹45.7 crore. The company's EBITDA margin improved substantially to 14.57% from 7.68% a year earlier, while its profit after tax margin stood at 11.5%. The proposed Fluence acquisition was meant to mark Honasa's entry into the nutraceuticals market, with the company planning to build the business through its wholly owned subsidiary, Honasa Health, combining Fluence's clinical and formulation capabilities with Honasa's brand-building and digital distribution expertise.
Fluence Pharma, founded by Amit Bhusari and dermatologist Rajendra Singh Rajput, develops nutritional supplements targeting hair and skin conditions. The company has a network of more than 3,000 dermatologists and reported revenue of around ₹40 crore in FY26, with an EBITDA margin of more than 20%. The termination of the Honasa transaction means those subsequent purchases will also not proceed under the proposed deal structure, though the company has left the door open to other opportunities in the segment, saying it will continue to evaluate the right organic and inorganic options for its nutraceutical business.
According to CNBC TV18, shares of Honasa Consumer ended at ₹485 on August 13, down 1.18%. The stock has demonstrated strong performance with gains of 69.61% so far this year and 62.21% over the past year. The company's stock has risen 59.47% in six months, 24.09% in three months, and 8.23% over one month. Over the past week, shares gained 2.30% and over two years, they increased 3.61%.
