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Honasa Consumer Reports Record Q4 Results
Honasa Consumer, the company behind popular brands including Mamaearth, has announced a strong fourth quarter. Revenue grew by 23.1% year-over-year to Rs 657.1 crore. The company also saw a significant boost in profitability, with EBITDA nearly tripling to Rs 77.2 crore, up from Rs 27 crore in the same period last year.
Margins Reach Record Highs
The company achieved its highest-ever quarterly EBITDA margin of 11.7%, a notable increase from 5.1% in the previous year. Net profit also climbed substantially to Rs 69.2 crore, compared to Rs 24.9 crore a year ago.
Analysts Divided on Future Outlook
Following the strong results, brokerage analysts presented mixed views. Jefferies maintained a "Buy" rating and raised its price target to Rs 565 from Rs 500. The firm cited Honasa's strong growth trajectory, improved execution, and profitability, along with management's guidance for high-teen revenue growth and annual EBITDA margin expansion.
In contrast, Citigroup kept its "Sell" rating but increased its target price to Rs 320 from Rs 285. Citigroup acknowledged the growth acceleration and operational leverage benefits but expressed concerns about the sustainability of these gains. The brokerage highlighted the need for continued offline distribution expansion and product innovation to maintain growth, and also pointed to margin expansion pace as a key area to watch.
Key Categories Fuel Performance
Honasa noted that its focus categories saw growth of over 35% during the quarter. The Mamaearth brand, its flagship offering, achieved double-digit growth and continued to expand its offline market presence.