Shares of Honasa Consumer Ltd., the parent company of Mamaearth, surged 8.15% to ₹291.25 on Wednesday, August 13, following the announcement of its June quarter (Q1 FY26) results after market hours on Tuesday. This marks the second consecutive session of gains for the stock.
The company posted a net profit of ₹41 crore for Q1 FY26, up 2.7% year-on-year, while revenue grew 7% YoY to ₹595 crore. EBITDA slipped 1% YoY to ₹46 crore, with margins holding at 7.7%.
Hong Kong-based brokerage CLSA upgraded Honasa to ‘Outperform’ and raised its price target to ₹333, noting Q1 revenue growth of 7.4% YoY in line with expectations, alongside underlying volume growth of 10.5% YoY. CLSA highlighted a sequential EBITDA margin expansion of 264 bps to 7.7%, delivering a 47% beat versus its estimates and a 44% beat on consensus expectations.
Management guided for an EBITDA margin of around 7% in FY26, with 100-150 bps expansion annually over the next 4–5 years. CLSA also raised its FY26–FY28 earnings estimates by 15–26%.
Jefferies maintained a ‘Buy’ rating with a price target of ₹400, citing positive margin surprises. The brokerage acknowledged that unseasonal rains impacted sunscreen sales but noted that sequential EBITDA margin improvement and outperformance versus expectations were key positives. Jefferies added that while new brands are scaling slowly, Mamaearth remains the primary growth driver.
