Honasa Consumer Q2 Results: Profitable Turnaround Boosts Shares

Honasa Consumer Ltd, the parent company of popular FMCG brands Mamaearth and The Derma Co, reported a consolidated net profit of ₹39.22 crore for the July–September quarter, marking a strong turnaround from a loss of ₹18.57 crore in the same period last year.

Following the earnings announcement, Honasa Consumer shares surged up to 9% in Thursday’s trade. The stock opened 6.36% higher and touched an intraday high of ₹308.20 per share on the NSE, before settling around ₹295 by 10:15 am.

Revenue and Income Growth

The company’s revenue from operations increased 16.5% year-on-year to ₹538.06 crore, compared to ₹461.82 crore in the corresponding quarter last year.

Total income, including other income, rose 15.84% to ₹558.20 crore, while total expenses were slightly lower at ₹505.45 crore.

Chairman, CEO & Co-founder Varun Alagh said,

“Our focus categories continued to contribute over 75 percent of total revenues, reaffirming the success of our category-first strategy. Deeper distribution and brand-building efforts have enhanced consumer engagement across India.”

In its earnings statement, the company highlighted that UVG (Underlying Volume Growth) in Q2 remained strong at 16.7%, reflecting volume-led growth and business resilience.

Also Read: Adani Enterprises Shares Jump Over 6% on Mega ₹24,930-Crore Rights Issue

Mixed Brokerage Views

Brokerages offered diverse opinions on Honasa Consumer’s outlook:

• Jefferies maintained a ‘Buy’ rating with a target price of ₹450, citing “strengthening business momentum with 17% volume-led growth and notable margin improvement.”

• HSBC, however, retained a ‘Reduce’ rating with a target price of ₹264, noting that while Mamaearth’s growth turned positive and emerging brands grew 20% YoY, overall revenue growth was similar after adjusting for reporting changes, leading only to minor upward profit revisions.

Key Highlights

• Q2 Net Profit: ₹39.22 crore vs. loss of ₹18.57 crore YoY

• Revenue from Operations: ₹538.06 crore, up 16.5%

• Total Income: ₹558.20 crore

• Total Expenses: ₹505.45 crore

• UVG Growth: 16.7%

• Stock Movement: Up 9% to ₹308.20 on NSE

Disclaimer: The views and investment opinions mentioned by brokerages are their own. Readers are advised to consult certified financial experts before making any investment decisions.

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