Honasa Consumer Stock Hits 52-Week High on Strong Q1FY27 Results
By ThePip Desk
Honasa Consumer stock surges 5% to a 52-week high of ₹501.55 after reporting robust Q1FY27 earnings with 31.8% revenue growth and 118% PAT increase.
Honasa Consumer shares surged 5% on Friday, reaching a 52-week high of ₹501.55 on the BSE, propelled by the announcement of robust earnings for the quarter ended June 2026 (Q1FY27).
The stock has seen substantial appreciation, more than doubling by 102% from its 52-week low of ₹248.55 recorded on December 11, 2025.
Q1FY27 Financial Performance
- Highest-ever revenue: ₹785 crore
- Year-on-year (YoY) revenue growth: 31.8%, driven by volume
- Highest-ever profit after tax (PAT): ₹90.3 crore
- YoY PAT increase: 118%
Key focus categories within Honasa Consumer’s portfolio expanded by 35% during the quarter. Flagship brand Mamaearth achieved high-teens growth, particularly with products like Rosemary shampoo and Facewash.
Younger brands collectively demonstrated a 40% YoY growth. The Derma Co successfully surpassed a ₹1,000 crore annualized run rate (ARR) and achieved teens earnings before interest, taxes, depreciation, and amortization (EBITDA) margin.
Margin Dynamics and Product Expansion
- Gross margin declined: 150 basis points (bps) to 69.7% YoY
- Primary cause for gross margin decline: increased packaging costs
- EBITDA (adjusted for ESOP) more than doubled
- EBITDA margin expanded: 538 bps YoY to 13.1%
- Attribution for EBITDA margin expansion: operating leverage and higher sales contribution from high-margin products such as facewash and serums
- New product launch: ‘FIKN’ in the fragrance category
Analysts at JM Financial Institutional Securities maintained a ‘BUY’ rating on Honasa Consumer. They revised the DCF-based target price to ₹560 from ₹485, citing strong Q1 performance including 32% like-to-like (LTL) revenue growth.
ICICI Securities noted that management targets a 100-150 bps EBITDA margin expansion in FY27 from 10% in FY26. This positive outlook is supported by an improving product mix, favorable seasonal trends, and leverage benefits expected to drive faster margin progression.
Management commentary indicates sustained double-digit growth for Mamaearth and overall higher revenue growth in FY27, which is anticipated to further boost margin expansion and earnings growth.