{"id":17327,"date":"2025-11-13T16:04:49","date_gmt":"2025-11-13T10:34:49","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=17327"},"modified":"2025-11-13T16:04:49","modified_gmt":"2025-11-13T10:34:49","slug":"mamaearth-shares-jump-9-post-q2-as-brokerages-turn-positive","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/mamaearth-shares-jump-9-post-q2-as-brokerages-turn-positive\/","title":{"rendered":"Mamaearth Shares Jump 9% Post-Q2 as Brokerages Turn Positive"},"content":{"rendered":"

Mamaearth Shares Surge Up to 9% as Strong Q2 Results Spark Broker Confidence and Hint at Turnaround<\/p>\n

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\u2013September 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.<\/p>\n

The stock opened with a gain of 6.36 percent on the NSE and soon climbed to an intraday high of \u20b9308.20, marking a 9.2 percent jump. As the session progressed, some profit booking emerged, but the stock continued to trade firmly higher at around \u20b9295 by mid-morning.<\/p>\n

Mamaearth Returns to Profit in Q2, Driven by Strong Revenue and Cost Discipline<\/h2>\n

Honasa Consumer reported a consolidated net profit of \u20b939.22 crore for the September quarter, reversing the \u20b918.57 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.<\/p>\n

Revenue from operations increased 16.5 percent year-on-year to \u20b9538.06 crore, compared with \u20b9461.82 crore in Q2 FY25. Total income, including other income, rose 15.84 percent, coming in at \u20b9558.20 crore.<\/p>\n

Interestingly, total expenses were marginally lower at \u20b9505.45 crore, demonstrating the management\u2019s 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\u2019s personal care and FMCG landscape.<\/p>\n

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Management Highlights Strength in Core Categories and Growing Consumer Engagement<\/h2>\n

Chairman, CEO and Co-founder Varun Alagh said that the company\u2019s category-first strategy continues to drive sustainable growth.<\/p>\n

\u201cOur 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,\u201d Alagh noted in the earnings update.<\/p>\n

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.<\/p>\n

Brokerages Take Note: Jefferies Sees Early Signs of Turnaround<\/h2>\n

The strong Q2 print drew mixed but largely constructive reactions from brokerages.<\/p>\n

Jefferies, in its post-results note, maintained a \u2018Buy\u2019 rating on Mamaearth shares with a target price of \u20b9450, calling the quarterly performance a \u201cglimpse of a turnaround\u201d.<\/p>\n

According to the global brokerage, \u201cBusiness momentum is strengthening with a 17 percent volume-led growth and notable margin improvement.\u201d 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.<\/p>\n

Jefferies also noted that the brand\u2019s widening distribution network and growing trust among younger consumers continue to position Mamaearth favourably in the premium and naturals-driven personal care market.<\/p>\n

HSBC Takes a Cautious View Despite Improvement in Metrics<\/h2>\n

While Jefferies struck an upbeat tone, HSBC retained its \u2018Reduce\u2019 rating on the stock with a target price of \u20b9264. 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.<\/p>\n

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.<\/p>\n

Sentiment Improves as Mamaearth Strengthens its Position in the FMCG Landscape<\/h2>\n

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.<\/p>\n

Analysts say the company\u2019s 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.<\/p>\n

Industry experts add that Mamaearth\u2019s ability to grow emerging brands\u2014such as The Derma Co\u2014at a robust pace contributes to a healthier portfolio mix that can provide revenue diversification in the medium term.<\/p>\n

Outlook: Can Mamaearth Sustain This Momentum?<\/h2>\n

While the Q2 results have sparked optimism, the long-term performance of Mamaearth will hinge on the company\u2019s ability to maintain volume-led growth, manage marketing spends judiciously, and expand sustainably in non-metro markets where discretionary spending trends can be unpredictable.<\/p>\n

However, the latest financial performance, combined with positive commentary from key brokerages, indicates that Mamaearth shares may be entering a more constructive phase \u2014 one driven by fundamentals rather than sentiment alone.<\/p>\n