Honasa Consumer Hits Upper Circuit on Q2 Growth Guidance

Honasa Consumer shares jumped 10.5% to hit their upper circuit at Rs 488.5 in Tuesday's trade, after the Mamaearth parent said it expects net sales value growth in the early thirties percent range for the September quarter. What Triggered the Move: The pre-quarter business update pointed to continued momentum across its portfolio of Mamaearth, The Derma Co, Aqualogica and BBlunt. This echoes Q1 FY27, when Honasa had guided for roughly 30% year-on-year growth and then delivered total income up nearly 26% when results were reported. A similar scale of growth now flagged for Q2 appears to be what sent the stock straight into the upper circuit today. The Bigger Picture: Honasa has had a rough couple of years since its 2023 listing, with the stock falling well below its IPO price of Rs 324 at various points as growth decelerated and questions were raised about its distribution model and marketing spends. The company has since simplified its stockist structure and leaned harder into premium brands like The Derma Co to rebuild margins. Today's guidance suggests that shift is translating into faster top-line growth again, though a guidance number is not the same as an audited result, and the actual Q2 print will matter more once it lands in the coming weeks. Where It Stands: The stock has now moved between Rs 248.40 and Rs 509.80 over the past 52 weeks, and commands a market capitalisation of around Rs 14,400 crore. With the stock sitting close to its 52-week high after today's jump, the bar for the actual quarterly numbers only gets higher from here. Disclosure: Palash Kag, Proprietor, Sarathi Research (SEBI Reg. No. INH000012740). No position held in Honasa Consumer. This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any security. Please consult a registered advisor before making investment decisions