Honasa Consumer reported a remarkable 177% year-on-year increase in consolidated net profit to Rs 69 crore for the fourth quarter of FY26, up from Rs 25 crore in the same period last year. The company's revenue from operations also saw a significant rise, jumping over 23% YoY to Rs 657 crore compared to Rs 533 crore in Q4 FY25.
Jefferies has set a target price of Rs 565 for Honasa, indicating a potential 57% upside from the previous close, citing strong growth across channels. The company’s focus categories grew over 20% in e-commerce and more than 30% in both modern trade offtakes and general trade secondary sales. Jefferies noted that Honasa's modern trade outlet reach has surpassed 10,000 stores, with general trade being a fast-growing channel due to improved store execution and automated ordering systems.
Jefferies expects Honasa's EBITDA margins to improve by 100 basis points annually, driven by operating leverage and lower operating expenses. The company has already implemented product price hikes to counter raw material inflation and does not foresee any significant impact in the first quarter, with no further price hikes planned. Honasa also declared its first dividend since listing, indicating confidence in its cash-generating capabilities.
“Honasa Consumer continues to deliver strong growth across channels.”
Jefferies
CLSA maintained its “Outperform” rating with a target price of Rs 434, highlighting Mamaearth's growth in the teens and a 30% YoY increase in offtake growth in both general and modern trade. CLSA noted that operating leverage helped EBITDA exceed expectations by over 140 basis points.
ICICI Securities set a target price of Rs 500, emphasizing Honasa as a top pick in the consumer space. The brokerage highlighted the effective addressing of concerns regarding Mamaearth's sustainable growth and portfolio expansion, with Mamaearth growing in the teens and younger brands expanding over 40%.
JM Financial raised its target price to Rs 420, noting mid-teen sales growth in Mamaearth and over 30% growth in younger brands. The brokerage believes that faster growth in higher-margin brands provides levers for further margin expansion.
Background
Honasa Consumer's strong Q4 performance underscores its strategic focus on growth across multiple channels and brands. As the company continues to expand its market presence and optimize operations, investors and analysts will be watching for sustained growth and margin improvements in the coming quarters.
As the company continues to expand its market presence and optimize operations, investors and analysts will be watching for sustained growth and margin improvements in the coming quarters.
