Honasa Consumer, known for its Mamaearth brand, experienced a significant surge in its stock price, climbing 11.49% to ₹348.75 during intraday trading on the BSE. This increase followed the company's optimistic business update for the fourth quarter of FY26.
In its quarterly update, Honasa projected a revenue growth rate in the early twenties for Q4 FY26, adjusting for changes in revenue recognition policies by the Flipkart Group. The company anticipates that Mamaearth will deliver growth in the teens, while its other brands, including The Derma Co., Aqualogica, and BBlunt, are expected to achieve mid-twenties growth.
Despite the initial surge, Honasa's shares later settled at ₹325.10, reflecting a 3.82% increase. The company's market capitalization is approximately ₹10,577 Cr (around $1.27 billion).
Honasa credited its growth to the robust performance of Mamaearth and highlighted the importance of its offline distribution channels. The company noted that its offline strategy, revamped under 'Project Neev,' has been a key driver of growth, particularly in general and modern trade.
March marked the first full quarter following Honasa's acquisition of BTM Ventures Pvt Ltd, which owns Reginald Men and Molecular Company. The company expects strong contributions from BTM Ventures, having acquired a 95% stake in it for ₹195 Cr in December.
Honasa aims to maintain its operating profitability in the upcoming quarter. In the previous quarter, the company reported a 93% year-on-year increase in net profit, reaching ₹50.2 Cr, alongside a 16% rise in operating revenue to ₹601.5 Cr.
