Honasa Consumer shares surge 9%; ICICI Securities sees 42% upside post Q2

Honasa Consumer share price: Analysts have given thumbs up to Mamaearth's focus on innovation and diversification during Q2FY26

Honasa Consumer share price today

  Shares of Honasa Consumer -- the parent company of Mamaearth -- zoomed over 9 per cent on the bourses on Thursday, November 13, 2025, as the grooming and personal care company's September quarter results for the current financial year (Q2FY26) revealed a turnaround in profitability. This, analysts said, was driven by better product mix and focus on new launches.  Though they largely remain positive on Honasa Consumer Ltd. (Mamaearth) stock's given the solid business growth outlook, they caution against stretched valuations. 

 

Analysts at ICICI Securities, for instance, have reaffirmed their 'Buy' rating on the Honasa Consumer stock with a target price of ₹400, implying a 42 per cent upside from the stock's previous closing price, citing clarity in focus, improving category depth, and enhanced execution. 

Those at JM Financial, meanwhile, have upgraded the stock to 'Buy' from 'Add'. Initiatives around reviving growth in Mamaearth, they said, are showing promising results and the management commentary was optimistic in terms of accelerating growth to double digits by Q4FY26.  "The pace of margin expansion has been much ahead of our expectations for past few quarters (led by improved mix and operating leverage), which should sustain, led by improving growth in Mamaearth, scale up in premium brands, and marketing

efficiencies," they said with a share price target of ₹330 (versus ₹325 earlier). 

  Emkay Global Financial Services' analysts, on the other hand, have retained a 'Sell' call with a target of ₹250, arguing that valuations remain stretched despite operational improvement.  On the bourses, Mamaearth share price jumped 9.4 per cent intraday to hit a high of ₹308.5 per share on the BSE. At 9:50 AM, the stock was ruling around 5 per cent higher as against a 0.02 per cent dip in the benchmark BSE Sensex index.   So far in calendar year 2025, Honasa Consumer shares have soared nearly 20 per cent on the BSE. It hit a 52-week high level of ₹378.9 on November 14, 2024.

Mamaearth Q2FY26 results highlights

On Wednesday, Honasa Consumer reported a 16.5 per cent year-on-year (Y-o-Y) rise in revenue to ₹5,381 crore in Q2FY26, backed by steady volume growth of 16.7 per cent. Adjusted for changes in the Flipkart settlement, like-for-like revenue growth stood at 22.5 per cent Y-o-Y.

 

The company’s gross margin expanded 172 basis points (bps) Y-o-Y to 70.5 per cent, aided by a favourable product mix and improving premium brand salience. The Ebitda margin, too, improved sharply to 8.9 per cent, compared to a Ebitda loss of 6.6 per cent in the year-ago period, reflecting better cost discipline and operating leverage, analysts noted.

 

ICICI Securities attributed the improved performance to broad-based traction across core categories such as face wash, sunscreen, moisturisers, and haircare, which contributed over 75 per cent of total revenue. The brokerage also noted that Mamaearth returned to double-digit growth, gaining 123 basis points market share in face cleansers (as per NielsenIQ), while The Derma Co. crossed a ₹750 crore annual revenue run-rate, emerging as India’s top sunscreen brand (Euromonitor CY24).

 

Mamaearth aims to cross the ₹1,000-crore annual revenue run rate for the Derma Co over the next couple of years.

 

At the bottomline level, net profit for the quarter came in at ₹39.2 crore, reversing a loss of ₹18.6 crore in Q2FY25. Emkay Global highlighted that lower advertising and promotional spends, along with improved cost efficiency, supported the company’s better-than-expected profitability.  ALSO READ | Tata Motors PV faces key risks amid EV slowdown, JLR headwinds: Analysts

Focus on new launches

Brokerages gave thumbs up to Honasa’s focus on innovation and diversification. The company entered the prestige skincare segment with the launch of Luminéve and made a strategic investment in Fang, a premium oral care brand, acquiring a 25 per cent stake during the quarter.

 

These moves, analysts said, indicate Honasa’s intent to expand beyond its flagship Mamaearth and Derma Co. brands into newer adjacencies.

 

ICICI Securities observed that offline expansion remained robust, with the company’s direct outlet coverage rising over 35 per cent Y-o-Y to around 0.25 million FMCG retail outlets. The brokerage expects Honasa’s younger brands, which now account for over half of total revenue, to drive sustained growth momentum.

 

Notably, younger brands maintained an over 20 per cent Y-o-Y growth rate, supported by innovation-led launches such as Aqualogica’s in-vivo tested Anti-Pollution sunscreen and Dr. Sheth’s prestige serums.  ALSO READ | Ashok Leyland at crossroads after Q2: Buy for growth or reduce for caution?

Honasa Consumer share price: Outlook and valuation

Going ahead, ICICI Securities projects a revenue, Ebitda, and net profit CAGR of 15 per cent, 62 per cent, and 52 per cent, respectively, over FY25–28, reflecting continued margin recovery and scale benefits. It values Mamaearth stock at 59-times Sep’27E EPS and maintains its optimistic stance, citing margin tailwinds and broad-based growth across categories.  JM Financial, too, has raised eaarnings estimates by 2-5 per cent over FY26-28. 

 

Conversely, Emkay Global remains cautious, pointing out that despite improved execution and accounting-driven margin gains, valuations remain expensive at around 35-times FY26E earnings. The brokerage has cut its revenue estimates for FY26–27 by up to 3 per cent but raised earnings projections by 6-15 per cent due to accounting adjustments and better-than-expected margins.