Honasa Consumer Ltd — the parent company of Mamaearth — saw its shares jump more than 9% on Thursday, November 13, after the company posted a strong Q2 FY26 performance marked by robust revenue growth and a sharp improvement in profitability.
The beauty and personal care company reported consolidated revenue of ₹538 crore, up 16.5% year-on-year, supported by healthy traction across brands and improved momentum in both online and offline channels.
A major highlight was the company’s operational turnaround. Honasa posted an EBITDA of ₹47.6 crore, reversing last year’s loss of ₹30.8 crore. EBITDA margin expanded to 8.8%, reflecting better cost controls and enhanced operating efficiency.
On the bottom line, the company delivered a net profit of ₹39.2 crore, compared to a loss of ₹18.5 crore a year earlier — a significant improvement that boosted investor sentiment.
What brokerages are saying
HSBC on Honasa
- Rating: Reduce
- Target Price: ₹264 per share
- Mamaearth growth has turned positive; emerging brands continue to grow at 20% YoY.
- Adjusted revenue growth remains similar despite reporting changes.
- HSBC has raised PAT estimates by 6% for FY27 and 5% for FY28 on stronger margins.
- Maintains 40x target P/E, viewing Honasa as a low double-digit growth company.
Jefferies on Honasa
- Rating: Buy
- Target Price: ₹450 per share
- Says business is positioned for strong growth in coming quarters.
- Q2 marks a turnaround with 17% volume-led growth and notable margin improvement.
- Mamaearth is firmly back on the growth track.
- Offline strategy is delivering, providing a runway for other brands under the company.
Bottom line
Honasa’s strong Q2 rebound, improving margins, and revival in volumes have supported the stock’s rally. However, the wide divergence in brokerage views suggests investors must weigh growth potential against valuation risks and competitive pressures.
Disclaimer
The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. The views mentioned belong solely to brokerage firms and not the author or Business Upturn.
