Honasa Consumer Posts Significant Profit in Q2, Stock Soars

Post by : Bianca Suleiman

Honasa Consumer's shares saw a notable rise on Thursday, fueled by the company’s return to profitability for the July-September quarter. The stock opened 6.36% higher, reaching an intraday peak of Rs 308.20 before retracting to around Rs 295 on the NSE by mid-morning.

The firm, recognized for its FMCG brands like Mamaearth and The Derma Co, reported a consolidated net profit of Rs 39.22 crore, marking a significant recovery from a loss of Rs 18.57 crore in the same quarter last year.

Its operational revenue surged by 16.5%, totaling Rs 538.06 crore compared to Rs 461.82 crore in the previous year’s Q2. Total revenue, including other income, rose to Rs 558.20 crore, indicating a growth of 15.8%, while total expenses decreased slightly to Rs 505.45 crore.

The primary focus areas contributed over 75% of total revenue, illustrating the effectiveness of its category-driven strategy. Volume growth remained strong, with UVG climbing 16.7%, showcasing ongoing consumer demand and solid core business performance.

Market reactions were mixed yet overall positive. Jefferies maintained a Buy rating with a target of Rs 450, attributing this to volume-led expansion and improved margins. Conversely, HSBC retained a Reduce rating at Rs 264, highlighting moderate revenue growth but pointing to higher margins leading to slight profit upgrades.

This robust performance underscores Honasa Consumer’s resilience within the FMCG landscape, reflecting consistent consumer interest in wellness and personal care products.