Honasa Consumer Limited, the parent company of Mamaearth, saw its shares drop over 20% after reporting its Q2 FY25 financial results.
The company posted a net loss of ₹19 crore, an improvement from the ₹29 crore loss in Q2 FY24. However, revenue declined 6.9% to ₹462 crore, compared to ₹496 crore in the same quarter last year. The firm reported an EBITDA loss of ₹31 crore, compared to ₹40 crore in the previous year.
In the meantime, Global brokerage firm Jefferies has maintained its “Buy” rating on Honasa Consumer but revised the target price to ₹425. The adjustment reflects the challenges posed by inventory corrections and ongoing losses.
Jefferies noted disappointment following the founders’ comments about revisiting their operational strategy, adding an element of uncertainty for investors. The brokerage acknowledged that while the startup faces transitional hurdles, these are not unique to Honasa Consumer.
