Honasa Consumer shares hit 20% upper circuit after Q4 results; what is behind the stellar rally?

The stock ended the session at ₹330.19 on the NSE, up 20%.

The company, according to news reports, reported a net profit of ₹24.9 crore for the quarter under review, down 18% from ₹30.5 crore logged in the year-ago period. It had posted a profit of ₹26 crore in the previous quarter, as per the regulatory filing.

Profit for the full financial year FY25, however, fell by a sharp 32% to ₹72.6 crore, as against ₹110.5 crore seen in the previous year.

The firm's revenue from operations rose 13% year-on-year (YoY) to ₹533.5 crore in Q4, up from ₹471 crore registered last year, and ₹517.5 crore in the previous quarter.

Honasa's gross profit margin improved to 70.7% in Q4 FY25, up 76 bps YoY, driven by an improved product mix and operational efficiencies, reports added.

Key Highlights

• In its earnings release, the company said that Mamaearth’s strategy shift showed green shoots with double-digit YoY growth in key categories across e-Commerce and Modern Trade in Q4 FY25, backed by building leadership in focus categories, optimal media mix modelling, and awareness-led brand building;

• NielsenIQ reported, Mamaearth sustained strong consumer demand with share gains across key categories; entered the Top 5 in face wash market share, and expanded retail distribution by 26% YoY to 2.36 lakh outlets;

• Younger brands continued their growth momentum with 30 %+ YoY growth in FY25; and

• The Derma Co. hit ₹100 crore ARR in offline channels.

ARR stands for annual recurring revenue.

What management said

Varun Alagh, Chairman and CEO & Co-founder, Honasa Consumer Limited, said, "FY25 has been a year of learnings, focus, and disciplined execution. Despite its ups and downs, we’ve seen green shoots emerge, with the business delivering double-digit growth and strong momentum across our key brands. In Q4 FY25, we achieved revenue of ₹534 Cr, growing 13.3% YoY—significantly ahead of the broader FMCG market."

The CEO added that Mamaearth’s strategic pivot has begun to show results, with double-digit category growth across e-commerce and modern trade, driven by building leadership in focus categories, optimised media mix modelling, and awareness-led brand building.

About Honasa Consumer Ltd

Honasa Consumer Limited is one of the leading digital-first beauty and personal care companies, with a diverse portfolio of six brands. The company builds and manages multiple digital-first beauty and personal care brands, leveraging technology and a focus on millennial consumers to drive growth and innovation.