Honasa Consumer Shares Gain 3% After Strong Q1 Profit, Revenue Growth

$HONASA Honasa Consumer shares gained more than 3% in morning trade on Friday, after the company reported a strong June-quarter performance a day earlier, with profit more than doubling and EBITDA margins expanding sharply. The company’s profit after tax rose 119% YoY in the June quarter, while revenue increased 27%. EBITDA surged 141%. Honasa reported 30.5% volume-led growth during the quarter. Its e-commerce business grew 20%, while general trade and modern trade both recorded 40% growth. Analysts said the company continues to demonstrate strong momentum, delivering growth across both revenue and margins. Emkay highlighted high-teens growth at Mamaearth, while other brands continued to expand at a rapid pace. The company had a total outlet count of around 3 lakh as of June 2026. It has also entered the fast-growing fragrance segment with the launch of its FIKN brand. They expects growth to remain robust, driven by low-double-digit growth at Mamaearth and more than 20% growth at The Derma Co. Management is targeting a high-teens revenue CAGR over the next five years, with Mamaearth expected to deliver double-digit CAGR through continued distribution expansion. Honasa implemented calibrated price increases towards the end of the first quarter to offset inflation in crude-linked raw materials and packaging costs. However, these price hikes could put some pressure on gross margins in the second quarter. The company aims to expand EBITDA margins by 100–150 basis points annually, with a long-term target of around 15%. Honasa Consumer shares have gained 74.7% so far this year.