Mamaearth Parent Honasa Consumer Skyrockets! Profit Returns, Stock Surges 9.4% – Big Brokerage Calls Revealed!

Consumer Products

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Updated on 13 Nov 2025, 06:16 am

Honasa Consumer, widely recognized as the parent company of the popular brand Mamaearth, announced a significant financial turnaround for the September quarter of FY26. The company reported a consolidated net profit of INR 39.2 Crore, a substantial recovery from the INR 18.6 Crore loss recorded in the same quarter of the previous fiscal year. This shift was attributed to the company's strategic move from a super-stockist-led model to a direct distributor model.

Operating revenue saw a healthy increase of 17% year-on-year, reaching INR 538.1 Crore, up from INR 461.8 Crore in Q2 FY25. However, on a quarter-on-quarter (QoQ) basis, both profit and revenue experienced a decline of 5% and 10%, respectively.

During the quarter, Honasa Consumer expanded its product portfolio by entering the prestige skincare segment with the launch of Luminve and acquiring a 25% stake in Fang to enter the oral care market. The company also bolstered its offline distribution network, with its reach expanding by over 35% year-on-year to approximately 2.5 Lakh FMCG retail outlets.

A notable factor impacting reported revenue was a INR 28 Crore deduction due to Flipkart's updated settlement structure, which deducts fulfillment and logistics costs directly from seller payouts. Despite this, profitability remained unaffected.

Impact: This news significantly impacts Honasa Consumer's stock performance, boosting investor confidence after a period of losses. The return to profitability and revenue growth, coupled with strategic expansion into new segments and enhanced offline reach, paints a positive picture for the company's future prospects. The mixed analyst ratings, however, suggest continued volatility and scrutiny from the market. Rating: 7/10

Difficult Terms: Consolidated Net Profit: The total profit of a company after deducting all expenses, taxes, and interest from its total income, including profits from all its subsidiaries. Year-on-Year (YoY): A comparison of financial data from one period (e.g., a quarter) with the same period in the previous year. Quarter-on-Quarter (QoQ): A comparison of financial data from one financial quarter with the preceding financial quarter. Operating Revenue: The income generated from the normal business operations of a company before deducting expenses. Super-stockist-led model: A distribution system where a central entity sells goods in bulk to super-stockists, who then distribute to stockists, and so on down the chain. Direct Distributor Model: A distribution system where the company sells directly to distributors or retailers, bypassing multiple intermediaries. Market Capitalisation: The total market value of a company's outstanding shares of stock. Brokerages: Firms that provide financial services, including research and recommendations on buying or selling stocks. Target Price: The price at which a stock analyst or brokerage firm expects a security to trade at in the future. Prestige Skincare Segment: High-end skincare products that are typically priced higher and positioned as premium. Oral Care Segment: Products related to the hygiene and health of the mouth, such as toothpaste and mouthwash. FMCG Retail Outlets: Fast-Moving Consumer Goods stores that sell everyday household items. Settlement Structure: The terms and conditions agreed upon for payment and reconciliation between parties in a transaction. Seller Payouts: The amount of money a marketplace or platform pays to a seller after deducting its fees and costs.