Honasa Consumer shares surge most in a year after reporting profit in September quarter, here is what analysts say

Shares of Honasa Consumer, the parent of beauty and baby care products maker Mamaearth, rose as much as 9.43% on the BSE to hit an intraday high of ₹308.55 a day after it reported its September quarter earnings. On the National Stock Exchange, Honasa Consumer shares climbed as much as 9.27% to hit an intraday high of ₹308.20.

The stock staged its best single day move in nearly one year on Thursday after it reported net profit in the second quarter of current financial year against a loss in the same period last year. Last time the stock moved over 9% was on November 28, 2024 when it surged 9.99%, data from BSE showed.

Honasa Consumer post market hours on Wednesday reported a consolidated net profit of ₹39.2 crore in July-September period compared to the net loss of ₹18.5 crore posted in the year-ago period.

The company reported revenue from operations of ₹539 crore for the quarter, marking a 16.5% increase from ₹462 crore in Q2 FY25.

Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) turned positive at ₹48 crore as compared to a loss of ₹30.8 crore on a year-on-year (YoY) basis. Its EBITDA margin came in at 8.8%.

“Q2 marked another quarter of steady growth for Honasa, with revenue up 22.5% YoY and EBITDA holding stable at ₹48 crore, reflecting the strength and consistency of our growth playbook. Our focus categories continued to contribute over 75% of total revenues, reaffirming the success of our category-first strategy, while deeper distribution and brand building enhanced consumer engagement across India,” said Varun Alagh, Chairman, CEO & Co-founder, Honasa Consumer.

The company, in its statement, said that its Q2 revenue from operations on a like-for-like basis stood at ₹566 crore, up 22.5% year-on-year, with a gross profit margin of 71.9%, reflecting strong top-line growth and improving margins. The company noted that its UVG remained robust at 16.7%, underscoring the resilience and volume-led growth of its core business.

The company stated that Mamaearth’s growth has returned to positive territory, while its younger brands recorded over 20% year-on-year growth in Q2, maintaining steady momentum across key focus categories.

During the quarter Honasa acquired 5% stake in FMCG oral care company Couch Commerce Private Limited (CCPL) for ₹10 crore.

Couch Commerce Private Limited (CCPL) operates ‘Fang Oral’, a prestige oral care brand that focuses on teeth whitening and everyday oral wellness. The brand targets premium consumers seeking advanced and effective oral care solutions.

For FY25, CCPL reported revenue of ₹3.14 crore, and its annual revenue run rate (ARR) stood at approximately ₹7 crore in FY26, based on net sales value as of September 2025.

Top investment firms HSBC and Jefferies offered divergent views on Honasa Consumer following its recent quarterly performance that signalled a turnaround in growth momentum.

HSBC said that while Mamaearth’s growth has turned positive and emerging brands continue to grow at a steady 20% year-on-year, overall revenue growth remains broadly similar after adjusting for a reporting change.

It raised its FY27 and FY28 expected net profit estimates by 6% and 5%, respectively, on expectations of higher margins, but maintained its 40 times target PE, noting that Honasa remains “a low-double-digit grower.”

On the other hand, Jefferies expressed optimism that the business is “now set for strong growth in coming quarters.” It highlighted that the second quarter showed a 17% volume-led growth alongside a notable margin surprise. Jefferies added that Mamaearth’s offline expansion strategy is delivering results, paving the way for other brands in the portfolio to benefit.

As of 9:45 am, Honasa Consumer shares traded 4.79% higher at ₹295.55, outperforming the NIFTY Smallcap 250 index which was up 0.16%.