Honasa Consumer Shares Rise on Strong Q2 Growth Outlook

Honasa Consumer, the parent company of Indian beauty brand Mamaearth, has issued a positive business update for the second quarter of fiscal year 2027. The company anticipates net sales value (NSV) growth in the low thirties on a year-over-year basis. This forecast has led to a notable increase in its share price in early trading.

The company also projects a low double-digit operating margin with strong year-over-year improvement. Its flagship brand, Mamaearth, is expected to see NSV growth in the high teens, while newer brands, including The Derma Co and Aqualogica, are projected to grow in the mid-forties. This growth is supported by a strengthened offline distribution network and continued momentum in online channels.

In the preceding quarter, Honasa Consumer reported a significant increase in its financial performance, with consolidated net profit more than doubling and operating revenue rising by 27% year-over-year. The company has been implementing strategic initiatives, including Project Neev to overhaul its offline distribution and refining the focus of its Mamaearth brand to core categories.

These strategic adjustments aim to drive sustained growth across its portfolio. Honasa Consumer has also indicated its continued interest in entering the nutraceuticals market through various opportunities, despite a previously proposed acquisition being called off.