Mamaearth Shares Surge Up to 9% as Strong Q2 Results Spark Broker Confidence and Hint at Turnaround
Mamaearth shares rallied sharply on Thursday, rising as much as 9 percent in intraday trade after parent company Honasa Consumer reported a return to profitability for the July–September quarter of FY26. The strong operational performance, combined with volume-led growth and improving margins, lifted market sentiment and prompted upbeat commentary from analysts tracking the stock.
The stock opened with a gain of 6.36 percent on the NSE and soon climbed to an intraday high of ₹308.20, marking a 9.2 percent jump. As the session progressed, some profit booking emerged, but the stock continued to trade firmly higher at around ₹295 by mid-morning.
Mamaearth Returns to Profit in Q2, Driven by Strong Revenue and Cost Discipline
Honasa Consumer reported a consolidated net profit of ₹39.22 crore for the September quarter, reversing the ₹18.57 crore loss posted in the same period last year. This turnaround was supported by a healthy improvement in operational efficiency and a steady rise in consumer demand across key categories.
Revenue from operations increased 16.5 percent year-on-year to ₹538.06 crore, compared with ₹461.82 crore in Q2 FY25. Total income, including other income, rose 15.84 percent, coming in at ₹558.20 crore.
Interestingly, total expenses were marginally lower at ₹505.45 crore, demonstrating the management’s sharper focus on cost optimisation and disciplined brand investment. This efficient cost structure helped the company deliver improved profitability despite ongoing competitive pressures in India’s personal care and FMCG landscape.
Also Read : Asian Paints Rally Signals Renewed Optimism as Disruption Fears Ease in India’s Paints Market
Management Highlights Strength in Core Categories and Growing Consumer Engagement
Chairman, CEO and Co-founder Varun Alagh said that the company’s category-first strategy continues to drive sustainable growth.
“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,” Alagh noted in the earnings update.
The company also highlighted a 16.7 percent UVG (unit volume growth) in Q2, underscoring strong volume-led expansion across the Mamaearth and Derma Co brands. This performance, the company said, reflects the resilience of its product portfolio amid a competitive FMCG environment.
Brokerages Take Note: Jefferies Sees Early Signs of Turnaround
The strong Q2 print drew mixed but largely constructive reactions from brokerages.
Jefferies, in its post-results note, maintained a ‘Buy’ rating on Mamaearth shares with a target price of ₹450, calling the quarterly performance a “glimpse of a turnaround”.
According to the global brokerage, “Business momentum is strengthening with a 17 percent volume-led growth and notable margin improvement.” The firm believes that the pickup in volumes, along with improving profitability, could signal the beginning of a more consistent growth phase for the company.
Jefferies also noted that the brand’s widening distribution network and growing trust among younger consumers continue to position Mamaearth favourably in the premium and naturals-driven personal care market.
HSBC Takes a Cautious View Despite Improvement in Metrics
While Jefferies struck an upbeat tone, HSBC retained its ‘Reduce’ rating on the stock with a target price of ₹264. The global brokerage acknowledged that Mamaearth posted positive revenue growth and noted that emerging brands under Honasa continued to expand at 20 percent year-on-year, but said the improvement may not be sufficient to materially upgrade long-term forecasts.
HSBC said that when adjusting for reporting changes, revenue growth remains largely similar to prior expectations. However, the improved margin profile prompted the brokerage to make a minor upward revision in profit estimates, suggesting that while the quarter is encouraging, more consistent performance will be needed to validate a durable turnaround.
Sentiment Improves as Mamaearth Strengthens its Position in the FMCG Landscape
The rise in Mamaearth shares reflects an improving outlook among investors after a volatile period marked by concerns over sustainability of premium D2C brands and stiff competition in the beauty and personal care segment.
Analysts say the company’s focus on core categories, brand visibility, omnichannel expansion, and efficiency-led profitability is beginning to show results. The return to profitability, coupled with double-digit volume growth, reinforces the view that the company is stabilising its operations after a year marked by pricing volatility, demand softness and high marketing spends.
Industry experts add that Mamaearth’s ability to grow emerging brands—such as The Derma Co—at a robust pace contributes to a healthier portfolio mix that can provide revenue diversification in the medium term.
Outlook: Can Mamaearth Sustain This Momentum?
While the Q2 results have sparked optimism, the long-term performance of Mamaearth will hinge on the company’s ability to maintain volume-led growth, manage marketing spends judiciously, and expand sustainably in non-metro markets where discretionary spending trends can be unpredictable.
However, the latest financial performance, combined with positive commentary from key brokerages, indicates that Mamaearth shares may be entering a more constructive phase — one driven by fundamentals rather than sentiment alone.
