By Chaitanya
BBA Finance Graduate & 6+ Years of Experience in Stock market & Finance
Honasa Consumer Ltd, the force behind the popular Mamaearth brand and India’s largest digital-first beauty and personal care company, saw its shares climb sharply on August 13, 2025. This surge followed the announcement of robust financial results for the first quarter of fiscal year 2026 (Q1 FY26). The strong performance has prompted a diverse range of reactions from leading brokerage firms, leading to varied outlooks on the
Honasa Consumer’s Q1 FY26 Financial Performance
Honasa Consumer showcased a strong performance in Q1 FY26. The company’s financial reports highlight significant growth across key indicators:
- Revenue: Rs. 595 crore, marking an 11.4% increase quarter-on-quarter (QoQ) from Rs. 534 crore, and a 7.4% rise year-on-year (YoY) from Rs. 554 crore.
- Net Profit: Reached Rs. 41 crore, showing a substantial 64% QoQ jump from Rs. 25 crore. On a YoY basis, net profit increased by 2.5% from Rs. 40 crore, with the exact figure stated as Rs. 41.32 crore (a 2.6% increase YoY from Rs. 40.2 crore).
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation): Recorded at Rs. 45.7 crore, experiencing a slight 1% decrease YoY.
- EBITDA Margin: Stood at 7.7%, down from 8.3% YoY, but saw a healthy 2.6 percentage point improvement QoQ.
- Advertising & Promotion (A&P) Spending: Increased by 3%.
- Underlying Volume Growth: Posted a strong 10.5% YoY growth.
Despite these positive trends, the company did note a slight dip in sunscreen sales, approximately 200 basis points, attributed to early monsoon rains. This factor mildly impacted overall revenue growth.
Stock Movement and Market Capitalisation
On August 13, 2025, the
Brokerage Insights and Future Outlook
The Q1 FY26 results have triggered varied analyses from top brokerage houses, each providing their updated view on Honasa Consumer’s investment potential. Here is a summary of their ratings and target prices, based on their latest reports:
| Brokerage | Rating | Previous Target Price (Rs.) | Updated Target Price (Rs.) | Comments / Highlights |
|---|---|---|---|---|
| CLSA | Upgraded to ‘Outperform’ from ‘Hold’ | 303 | 333 | Margin guidance: 100–150 bps annual improvement over 4-5 years. Risks skewed upside. FY26-28 earnings estimates raised 15–26%. Volume growth 10.5%. Sunscreen sales impacted by approx. 200 bps due to early monsoon. |
| Jefferies | Maintain ‘Buy’ | 400 | 400 | Positive margin surprise despite revenue pressure from unseasonal rains. Sequential EBITDA margin improvement. New brands growth slow. Mamaearth yet to fully recover. |
| ICICI Securities | Maintain ‘Buy’ | 400 | 400 | Double-digit growth in modern trade and e-commerce channels. Improved general trade sequentially via management initiatives. Profitability to rise with scale in younger brands. |
| JM Financial Institutional Securities | Buy | 300 | 310 | Management expects double-digit revenue growth for 9MFY26 and margins sustained at 7% by Q4FY26. Positive transformation steps underway. |
| Emkay Global Financial Services | Retain ‘Sell’ | 250 | 250 | Concerns over competitive pressures, especially for The Derma Co brand. Margin improvement target achievable but depends on growth momentum. |
As seen in the table, most brokerages such as CLSA, Jefferies, ICICI Securities, and JM Financial maintain or have upgraded their ‘Buy’ or ‘Outperform’ ratings, setting target prices up to Rs. 400. They foresee continued margin expansion and growth across digital and traditional sales channels. However, Emkay Global Financial Services remains cautious, keeping a ‘Sell’ rating due to worries about market competition, especially for its brand The Derma Co, and the feasibility of sustained margin growth.
Strategic Focus and Business Information
Honasa Consumer Ltd operates as India’s largest digital-first beauty and personal care firm, managing six distinct brands. Their strategy revolves around data-driven innovation and expanding their reach through all sales channels. A strong focus on sustainability and consumer needs drives their growth. Management anticipates an annual increase of 100-150 basis points in EBITDA margins over the next four to five years. This, coupled with a healthy 10.5% YoY volume growth, positions Honasa for ongoing success in the competitive FMCG sector.
Conclusion
Honasa Consumer’s Q1 FY26 performance has largely generated market optimism and positive sentiment from several brokerage firms. This reflects confidence in the company’s growth plan and potential for higher profits. While sunscreen sales were impacted by the monsoon, the overall financial health appears robust, powered by strong revenue and net profit. The differing analyst views on the
Disclaimer: All stock-related information, financial results, Price Targets and ratings shared on IPOC are strictly for informational and educational purposes only. The views and investment tips expressed by investment experts/broking houses/rating agencies on IPOcenter.in are their own, and not that of the website or its management None of the content published here should be considered as financial advice or a recommendation to invest. IPOC and its authors are not liable for any losses arising from decisions made based on the content of this article. Please consult a SEBI-registered financial advisor before making any investment decisions. The images used in this article are generated Images and meant for illustration purposes only.
