ewsba.se
Honasa Consumer share price surged nearly 12% intraday on Tuesday, 6 October, after reporting business performance for the quarter ended 30 September 2026 (Q2FY27). Shares of Honasa Consumer, the parent of the personal care brand Mamaearth, opened at ₹450.65 against their previous close of ₹441.80 and jumped as much as 11.6% to an intraday high of ₹492.90. At this level, the stock is up more than 61% over the last six months, while year-to-date, it is up over 73%.
In an exchange filing on 6 October, Honasa Consumer said Q2FY27 may be another robust quarter for the company, building on the momentum established in the last quarter. It expects a year-on-year (YoY) growth in net sales value in the early thirties during the quarter, supported by broad-based traction in its focus categories, across brands.
The company said its largest brand, Mamaearth, has sustained its growth momentum over the last few quarters and is expected to deliver high-teens YoY growth during the quarter, supported by rising brand affinity and a widening offline footprint.
"Our younger brands continue to scale on strong traction and are expected to accelerate their YoY growth to around mid-forties," said the company.
"We continue to deliver on our goal of EBITDA margin improvement, and we expect the business to deliver an early double-digit operating margin profile in Q2FY27 as well with strong YoY gains in the quarter," said the company.
A detailed update will follow after board approval of the Q2FY27 financial results, the company said.
Shares of the company, founded by the husband-and-wife duo Ghazal Alagh and Varun Alagh, have been on a strong uptrend this year so far, defying weak stock market sentiment, due to the company's rapid offline growth.
Reporting its Q2FY27 performance update, the company said its offline segment continues to lead its growth, with General Trade and Modern Trade both expected to post strong growth, backed by deeper direct distribution in General Trade and sharper execution at the point of sale. Online is expected to see continued growth momentum during the quarter.
Honasa's Q1 numbers were strong, catching investors' attention in a market that has seen narrow, stock-specific movements this year.
Honasa’s net profit rose 119% year-on-year to ₹90.4 crore in Q1FY27. Consolidated revenue from operations increased 27% to ₹756 crore from ₹595 crore in the year-ago quarter.
Experts appear positive about the stock, recommending buying it.
HDFC Securities, in a 29 September report, maintained a "buy" call on the stock with a September 2027 target price of ₹550.
"Our channel checks with distributors across key markets highlight that offline execution remains central to the next phase of growth. The offline channel accounts for nearly 35% of the business, while its contribution for Mamaearth is higher at 50%+," said HDFC Securities.
The brokerage firm highlighted that the company's management is targeting a 3 times expansion in direct reach over three years, with current efforts focused on boosting throughput at existing outlets.
In early September, brokerage firm Equirus Securities initiated coverage on the stock with a "buy" rating, with a December 2027 target price of ₹595, citing that the company's portfolio is built for an evolving market.
"We remain positive on Honasa as the company has repaired execution rather than simply lapping a weak base. Near-term growth should benefit from improving offline execution, a rising contribution from focus categories and the scaling of younger brands. Honasa’s repeatable brand-building model - identifying attractive categories, creating hero products and scaling them efficiently - provides a strong foundation for sustained long-term growth," said Equirus.
On the technical front, the stock appears to have the potential to move higher.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, at present, the price is approaching a crucial resistance zone of ₹480– ₹490. This zone is likely to act as a hurdle, and we expect some profit booking or a pullback from these levels.
Hence, Patel advises caution and against initiating fresh long positions at current levels.
He, however, added that existing positions may be closely monitored for signs of a reversal or profit-booking near the resistance zone.
"A sustained breakout and decisive closing above ₹490, preferably supported by strong volumes and improving momentum, would provide a stronger confirmation of the bullish trend and may open further upside potential. Until such confirmation emerges, it is better to wait for either a meaningful pullback or a fresh breakout before considering fresh longs," said Patel.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.