Mamaearth Parent Sees 10% Share Price Surge Following Q4 Results, Jefferies Notes Promising Growth Prospects

Honasa Consumer Sees Massive Growth in Q4 FY26

Honasa Consumer, the parent company of popular brands such as Mamaearth and The Derma Co, reported a significant increase in consolidated net profit for the March quarter. The company's shares jumped more than 10 percent on Friday, with brokerages maintaining a positive view on the stock.

According to an exchange filing, Honasa Consumer posted a consolidated net profit of Rs 69.43 crore for the January-March quarter of FY26, a more than two-fold rise from the Rs 24.97 crore reported in the year-ago period. The company's revenue from operations rose 23.15 percent to Rs 657.08 crore in the fourth quarter from Rs 533.56 crore a year ago.

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The company stated that Q4 FY26 witnessed its highest-ever quarterly revenue on a year-on-year basis along with its highest-ever EBITDA of Rs 77 crore. Brokerage firm Jefferies maintained a 'Buy' rating on the stock with a target price of Rs 565, citing the company's strong growth path and long-term compounding story.

Jefferies noted that Honasa Consumer's performance improved further in the fourth quarter, led by mid-teens growth in Mamaearth, strong momentum in younger brands, and record margin levels. The brokerage also highlighted the company's guidance of high-teens revenue growth along with 100 basis points annual EBITDA expansion.

Brokerage firm CLSA retained an 'Outperform' rating on the stock with a target price of Rs 434. CLSA stated that the company reported 23 percent year-on-year revenue growth in the quarter, while volume growth stood at 30 percent. The brokerage also noted that EBITDA margin expanded by more than 650 basis points year-on-year, resulting in EBITDA performance ahead of estimates.

Honasa Consumer strengthened its offline distribution ecosystem in Q4 FY26, with 1.2 lakh outlets billed directly through distributors during FY26. The company's younger brands grew 40 percent year-on-year in FY26, maintaining momentum across online and offline channels. The Derma Co continued to report strong growth across channels while maintaining a double-digit EBITDA profile.

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For the full FY26, Honasa Consumer's consolidated net profit more than doubled to Rs 200.19 crore from Rs 72.68 crore in the previous financial year. Total consolidated income for FY26 increased 15.37 percent to Rs 2,475.52 crore. The company's board also approved its maiden final dividend of Rs 3 per equity share, amounting to 51.2 percent of FY26 standalone profit after tax.