Mamaearth Parent Honasa Consumer Surges 9% After Stellar Q2 Profit Rebound! Are Investors Ready for This Rally?

Consumer Products

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Updated on 13 Nov 2025, 06:19 am

Honasa Consumer Ltd.'s stock experienced a significant surge, climbing over 9% in early trade on Thursday, driven by robust performance in its September quarter results. The company achieved a consolidated net profit of ₹39.22 crore, marking a strong turnaround from a loss of ₹18.57 crore in the same period last year. Revenue from operations saw a healthy 16.5% year-on-year (YoY) increase, reaching ₹538.06 crore.

Key drivers for this growth include the resurgence of its flagship brand, Mamaearth, which returned to positive growth territory and gained market share in face cleansers. Several Mamaearth products, including Rice Facewash, have now joined the ₹100-crore Annual Run Rate (ARR) club. Younger brands under the Honasa portfolio, such as The Derma Co., also continued their strong momentum, growing over 20% YoY and establishing leadership in segments like sunscreens.

The company is actively expanding its portfolio by venturing into premium segments, launching Luminéve, a prestige skincare brand, and investing in Fang, an oral care brand aiming to shape the 'oral beauty' category.

Analyst sentiment is mixed but largely positive. JM Financial upgraded the stock to 'BUY' with a target price of ₹330, citing profitability ahead of expectations and Mamaearth's revival. ICICI Securities retained its 'BUY' rating and ₹400 price target, highlighting broad-based brand momentum and margin tailwinds. Emkay Global, however, maintained a 'SELL' rating and a target of ₹250, expressing caution regarding margin recognition changes.

Impact: This news has a significant positive impact on Honasa Consumer Limited, boosting investor confidence and signaling strong recovery and growth potential. The stock price surge reflects positive market reception to the improved financial performance and strategic expansion into premium segments. While most analysts recommend buying, the cautious view from Emkay Global suggests potential volatility. The company's focus on innovation and brand building in the competitive beauty and personal care sector indicates a promising outlook. Rating: 7/10.

Difficult Terms: * **YoY (Year-on-Year):** Comparing a period with the same period in the previous year to assess growth or change. * **Consolidated Net Profit:** The total profit earned by a company and its subsidiaries after deducting all expenses and taxes. * **Revenue from Operations:** Income generated by a company directly from its core business activities. * **EBITDA:** Earnings Before Interest, Taxes, Depreciation, and Amortization; a measure of a company's operating performance before accounting for financing and accounting decisions. * **ARR (Annual Run Rate):** A projection of a company's revenue over the next twelve months, based on its current revenue performance. * **LFL (Like-for-Like):** A comparison of performance of existing assets or businesses over time, excluding impacts of acquisitions, disposals, or other structural changes. * **NielsenIQ:** A global measurement and data analytics company that provides insights into consumer behavior and market trends for fast-moving consumer goods. * **Euromonitor:** A market research company that offers data and analysis on consumer markets, industries, and countries worldwide. * **DCF (Discounted Cash Flow):** A valuation method used to estimate the value of an investment based on its expected future cash flows, discounted back to their present value. * **Operating Leverage:** The extent to which a company's fixed costs versus variable costs affect its profits. High operating leverage means small revenue changes can cause large profit changes.