Honasa Shares Jump Over 8% On Strong Q2 Growth Outlook

Shares of Mamaearth parent Honasa Consumer jumped as much as 8.2% to ₹478.20 on the BSE in early trade, after the beauty and personal care (BPC) company issued a strong business update for Q2 FY27.

At 10:03 IST, the stock was trading 6.9% higher at ₹472.35. The company’s market capitalisation stood at ₹15,368 Cr (about $1.6 Bn)

In an exchange filing, Honasa said it expects net sales value (NSV) growth in the low thirties on a YoY basis for the quarter ended September 2026, supported by growth across its focus categories and brands.

The company also expects a low double-digit operating margin, with strong YoY improvement, as it works towards expanding its EBITDA margin.

Its flagship brand Mamaearth is expected to register NSV growth in the high teens during the quarter, supported by higher brand penetration and offline expansion. Meanwhile, newer brands are expected to post NSV growth in the mid-forties. 

This younger brand portfolio comprises The Derma Co, Aqualogica, BBlunt, Dr Sheth’s, Staze, Lumineve, and Reginald Men.

Offline channels continued to lead Honasa’s growth, with both general trade and modern trade expected to post strong growth. The company attributed this to deeper direct distribution in general trade and better execution at retail outlets. Online channels are also expected to sustain their growth momentum.

The growth estimates are on a like-for-like basis, with the Q2 FY26 base adjusted for a change in the Flipkart group’s settlement mechanism that affects revenue recognition for marketplace sellers.

In the preceding quarter, Honasa’s consolidated net profit more than doubled to ₹90.5 Cr from ₹41.3 Cr in the year-ago period. Operating revenue rose 27% YoY to ₹755.9 Cr, while EBITDA more than doubled to ₹110 Cr from ₹46 Cr.

In Q1 FY27, Honasa’s focus categories grew more than 35% YoY, while its younger brands grew over 40%. Both general trade and modern trade grew more than 40%, and its distribution network crossed 3 Lakh FMCG retail outlets.

The latest update follows Honasa’s overhaul of its offline distribution under Project Neev, which began in late 2024 and stabilised during 2025. The exercise removed the super-stockist layer and strengthened direct servicing of retailers through distributors.

Alongside the distribution reset, Honasa narrowed Mamaearth’s focus to five core categories — face wash, shampoo, sunscreen, moisturiser, and baby care — after its expansion into too many categories diluted focus and execution.

The company has been pursuing diversification through younger brands, spanning skincare, haircare, colour cosmetics, and men’s grooming.

Honasa also proposed acquiring a 58% stake in nutraceuticals startup Fluence Pharma for ₹135 Cr, but called off the transaction in August after certain closing conditions were not fulfilled. Despite this, it said it remained committed to entering nutraceuticals through organic and inorganic opportunities.

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