The company’s run of solid performance continued in the June quarter. However, brokerages were mixed on the stock, with with Jefferies and Emkay Global raising their price targets by 15% and 10%, respectively, and CLSA, JPMorgan having “hold” and “underweight” recommendations, each.
Q1 Results
Its profit after tax surged 119% to ₹90.4 crore in the June quarter from ₹41.3 crore last year. Its revenue of ₹755.9 crore was up 27% from ₹595.2 crore in the previous fiscal. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) increased 141% to ₹110.11 crore from ₹45.69 crore last year. Its margins increased sharply to 14.6% from 7.7% in the year-ago period.
The company said it reported 30.5% volume-led growth.
Meanwhile, its e-commerce channel saw 20% growth, while general trade and modern trade reported 40% growth each.
Brokerages
Emkay Global
Brokerage firm Emkay Global has maintained its “buy” rating on the stock and has raised its target price by 10% to ₹550 from ₹500 per share. This indicates an upside of 14.8% from its previous close.
It said Honasa Consumer’s results exceeded expectations and were led by strong margins. Its strong revenue growth of 27% was 3% above the consensus expectations. Meanwhile, its EBITDA more than doubled with EBITDA margin expansion of over 500 basis points on the back of a better mix and seasonality.
Emkay Global said Honasa logged a total outlet-count of 3 lakh as of June 2026.
It also entered the fast-growing fragrance category with the launch of its FIKN brand, the brokerage said.
Going forward, Emkay Global expects the the growth rate to remain strong led by low-double digit growth in Mamaearth and over 20% growth in The Derma Co.
It expects margin expansion to continue and has estimated over 330 basis points increase over the next three years, mainly on the back of operating leverage.
The brokerage has also raised its earnings estimates by 9-13% over the next three years, mainly led by higher margins.
Overall, Emkay Global expects sales and earnings compound annual growth rate (CAGR) to be at 17% and 25%, respectively, during FY26-29.
The brokerage said it has increased its target price as it expects the strong growth momentum to continue, led by turnaround in the offline channel.
Jefferies
The brokerage has a “buy” rating and has raised its price target to ₹650 per share from ₹565 apiece. This indicates an upside of 35.7% from its previous close.
The brokerage said Mamaearth delivered high-teens growth and The Derma Co brand crossed ₹1,000 crore annual recurring revenue (ARR) with teen margins, while other products continued growing at a “breathtaking pace”.
It said offline scale-up, quick commerce share gains and new wellness and fragrance bets support the management’s growth and margin roadmap. It has raised the earnings per share (EPS) by 8-13%.
CLSA
The brokerage has a “hold” rating on the stock with a target price of ₹505 per share, an upside of 5.4% from its previous close.
It said as per the company’s business update, it reported a sales growth of 27% from last year — 32% growth, excluding change in accounting.
It said the operating leverage came in,albeit on an easy base, beating the broekrage’s EBITDA margin estimate by 190 basis points, excluding one off.
CLSA has lifted its FY27-29 earnings estimates by 6-13%
JPMorgan
The brokerage has an “underweight” rating on the stock with a target price of ₹410 per share, a downside of 14.4% from its previous close.
It said the first quarter adjusted EBITDA was marginally ahead, aided by 27% revenue growth even as gross margin was a slight miss.
Looking ahead, the management is targeting high teens revenue CAGR over the next five years, with the Mamaearth brand expected to deliver a double-digit CAGR driven by distribution expansion, the brokerage said,
Calibrated price increases were executed towards the end of the first quarter to offset crude-driven raw material, packaging inflation though there may be some gross margin impact in the second quarter, it added.
Honasa Consumer aims to grow its EBITDA margins by 100 to 150 basis points every year towards a 15% margin by FY31.
Stock reaction
Of the 14 analyts who have coverage on Honasa Consumer, nine have a “buy” rating, three have a “hold” rating and two have a “sell” rating.
Shares of Honasa Consumer were up 3.3% in early trade at ₹495.4 apiece on Friday. The stock has risen 74.7% this year, so far. It is also up over 80% from March this year.
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