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Shares of Honasa Consumer, the parent company of beauty and personal care brand Mamaearth, surged 13%; Key points for investors
Mamaearth Shares
Honasa Consumer Share Price: Shares of Honasa Consumer, the parent company of beauty and personal care brand Mamaearth, surged 13% to Rs 301 on the BSE on Tuesday after posting strong Q1 FY26 results.
Global brokerage Jefferies reiterated its Buy rating with a target price of Rs 400, citing a 7% year-on-year (YoY) revenue growth, in line with estimates. While gross margins contracted by ~50 basis points (bps) YoY and advertising & promotion expenses rose 3%, EBITDA margin declined ~60 bps YoY to 7.7% but improved 2.6 percentage points sequentially. EBITDA remained flat YoY, but net profit posted marginal growth, both beating estimates. Jefferies raised its EBITDA forecast by 3–11%, noting that Honasa remains a “high-risk, high-reward play.”
The brokerage highlighted that unseasonal rains weighed on sunscreen sales, limiting overall revenue growth to 7%, yet Honasa delivered a sequential EBITDA margin improvement—a notable beat. For the quarter ended June 2025, operating revenue rose 7% YoY to Rs 595 crore, supported by growth in focus categories, optimised operations, and scale benefits across brands.
Net profit came in at Rs 41 crore, slightly higher than Rs 40 crore a year earlier, and up 65% sequentially from Rs 25 crore in Q4 FY25. Total expenses rose to Rs 563 crore from Rs 520 crore YoY, with major spends on traded goods purchases (Rs 171 crore), employee benefits (Rs 60 crore), and other costs (Rs 318 crore).
“It is a volume-led growth. This could have been higher if the early onset of the monsoon hadn’t impacted our largest category—sunscreens,” said cofounder and CEO Varun Alagh during the post-earnings call. EBITDA stood at Rs 47 crore, with margins expanding to 8% on the back of gross margin gains, increased offline sales contribution, and operating leverage. Alagh added that the company will continue focusing on efficiency to ensure bottom-line growth outpaces topline growth.
Looking ahead, Honasa expects double-digit full-year growth in FY26, a rebound from FY25’s 8% revenue rise. Mamaearth remains the flagship brand, while newer labels like The Derma Co, Aqualogica, Dr Sheth’s, Bblunt, and Staze Beauty are growing over 20% YoY. Jefferies noted that focus categories, which account for 80% of revenues, recorded double-digit growth in Q1, driven by strong e-commerce performance and modest gains in other channels.
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Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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