Honasa Consumer, the parent company of Mamaearth, has set an ambitious revenue target of ₹5,500 crore by the financial year 2031, prompting a 6% increase in its share price. This growth forecast suggests a compound annual growth rate (CAGR) of approximately 18% from FY26 to FY31.
Mamaearth is expected to be the primary driver of this growth, with projected revenues exceeding ₹2,000 crore. Meanwhile, The Derma Co is anticipated to contribute around ₹1,500 crore during the same period.
Growth Strategy: The company plans to introduce at least two additional brands, each generating ₹500 crore in revenue, expanding its portfolio that includes Aqualoga, BBlunt, Dr Sheth’s, and Reginald Men.
Honasa aims to enhance its EBITDA margins to 15% by focusing on higher-margin channels and achieving operational efficiencies. The direct outlet network is set to grow from 120,000 to 300,000 outlets by FY31, with a strategic mix of general trade, modern trade, and quick commerce.
Market Leadership Goals: The company aspires to become a national leader in at least two skincare categories and secure a top-three market position in two additional categories.
Following this announcement, Goldman Sachs adjusted its target price for Honasa to ₹400, which the stock has already surpassed. The brokerage maintains a Neutral rating, citing balanced risk-reward dynamics at current valuations while raising its FY27-FY29 earnings estimates by 1-4%.
Recent Financial Performance
In the fourth quarter of FY26, Honasa reported a remarkable 177% year-on-year increase in consolidated net profit, reaching ₹69 crore, up from ₹25 crore in the previous year. Revenue from operations also rose over 23% year-on-year to ₹657 crore, compared to ₹533 crore in Q4 of FY25.
Over the past six months, Honasa shares have appreciated by 64%, with a notable 50% increase in 2026.
