Honasa Consumer, parent of Mamaearth, zooms 13% post Q1; Buy or sell?

Honsana Consumer shares zoomed 12.5 per cent on Wednesday on BSE, after the company posted its Q1 results; here's what brokerages suggest

Honasa Consumer, parent company of Mamaearth, shares zoomed 12.5 per cent on Wednesday, August 13, 2025, logging an intra-day high at ₹301.65 per share on BSE. The stock was in demand after the company released its June quarter (Q1FY26) results on Tuesday, post-market hours. 

 

At 9:31 AM, Honasa Consumer's share price was trading 11.26 per cent higher at ₹298.3 per share. In comparison, the Sensex was 0.18 per cent lower at 80,377.86.  READ STOCK MARKET UPDATES TODAY LIVE

Honasa Consumer Q1 results recap

In Q1, the company's consolidated net profit stood at ₹41.32 crore, as compared to ₹40.25 crore year-on-year (Y-o-Y), up 2.6 per cent. Its revenue from operations stood at ₹595.25 crore, as compared to ₹554 crore a year ago, up 7.4 per cent.

 

 

Its Earnings before interest, tax, depreciation, and amortisation(Ebitda) remained flat at ₹46 crore, and its Ebitda (percentage of net sales) stood at ₹7.7 per cent, as against 8.3 per cent.  ALSO READ | Analysts predict up to 38% gains in this defence PSU after Q1; do you own?

Honasa Consumer (Mamaearth) Q1 results analysis: Brokerages decode 

ICICI Securities | Buy | Target: ₹400

The brokerage believes the company's overall profitability was stable during the quarter, which is expected to improve with operating scale in younger brands. Additionally, going ahead, scaling up of younger brands driven by new product developments and sustained improvement in Mamaearth’s performance on the back of route to market (RTM) changes, may drive healthy performance.

 

Jefferies | Buy | Target: ₹400

The brokerage noted that unseasonal rain impacted the revenue, according to reports. However, the company managed to see sequential improvement in Ebitda margins. Also, new brands continued to grow strongly, while Mamaearth is yet to recover. 

 

JM Financial  Institutional Securities | Buy | Target raised to ₹310 from ₹300

Going ahead, management expects revenue momentum to improve (double-digit growth for 9MFY26) and also sustain margins at 7 per cent, which, according to brokerage, is better than the earlier management guidance of 7 per cent by Q4FY26. Additionally, recent transformation steps to sharpen execution are in the right direction, yielding encouraging results. 

 

Emkay Global Financial | Sell | Target: ₹250 

Analysts maintained a 'Sell' on the back of 3x EV-to-sales, as they anticipate a gradual recovery in sales. "Any re-rating in the stock hinges on the growth trajectory. The management target of 100-150bps margin improvement is achievable, albeit dependent on sustaining growth momentum," the brokerage noted.