Honasa Consumer Ltd., the parent company of Mamaearth and The Derma Co, witnessed strong buying interest on Thursday, with its stock rising over 9% in early trade. The company, which manufactures and sells natural, toxin-free skincare, haircare, baby care, and cosmetic products, returned to profitability in the September quarter, supported by double-digit growth in Mamaearth and continued momentum across its younger brands, including The Derma Co.

The company reported a consolidated net profit of ₹39.22 crore for the July–September period, compared with a loss of ₹18.57 crore a year earlier. Revenue from operations rose 16.5% YoY to ₹538.06 crore, while total income increased 15.84% to ₹558.20 crore. Total expenses stood slightly lower at ₹505.45 crore, reflecting improved cost efficiency and operating leverage.

Reacting to Q2 numbers, Mamaearth shares jumped as much as 9.5% to ₹308.55 on the BSE. At the time of reporting, the stock was up 4.4% at ₹294.40, valuing the company at around ₹9,579 crore.

Robust Q2 performance

For the second quarter ended September 30, 2025, Honasa Consumer reported a strong operating performance with revenue from operations on a like-for-like (LFL) basis rising 22.5% year-on-year to ₹566 crore, supported by healthy demand across categories. The company’s EBITDA remained stable at ₹48 crore, translating to a margin of 8.4%. Underlying volume growth (UVG) for the quarter stood at 16.7%, driven by volume-led expansion of its core business.

“Q2 marked another quarter of steady growth for Honasa, with revenue up 22.5% YoY and EBITDA holding stable at ₹48 Cr, reflecting the strength and consistency of our growth playbook. Our focus categories continued to contribute over 75% of total revenues and reaffirming the success of our category-first strategy, while deeper distribution and brand building enhanced consumer engagement across India,” said  Varun Alagh, Chairman, CEO & Co-founder, Honasa Consumer Ltd.

As per the company, Mamaearth’s growth returned to positive territory, with NielsenIQ data showing further market share gains in face cleansers (+123 bps) and steady performance in shampoos. The brand’s Rice Facewash joined the ₹100-crore annual run rate (ARR) club, alongside Ubtan and Vitamin C, strengthening its presence in the skincare category. Meanwhile, younger brands under the Honasa portfolio continued to build momentum, growing over 20% year-on-year in Q2 and contributing meaningfully across key focus categories.

“This quarter brought strong category wins, with Mamaearth back in green, strengthening its leadership in face cleansers with a 123 bps share gain (NielsenIQ). The Derma Co. was recognized by Euromonitor (CY’24) as India’s No. 1 sunscreen brand, crossing INR 750 Cr ARR milestone,” Alagh added.

He further said that the company Honasa Consumer is broadening its portfolio by venturing into new and fast-growing segments. The company recently launched Luminéve, its first prestige skincare brand, exclusively on Nykaa, marking its entry into the premium skincare space. Luminéve focuses on night skincare and deep repair, combining advanced ingredient science with a luxury positioning.

In addition, Honasa has invested in Fang, a prestige oral care brand that emphasizes teeth whitening and everyday oral wellness, reflecting the company’s intent to shape the emerging “oral beauty” category in India.

“Our focus remains on scaling Honasa as a House of Purposeful Brands, built on innovation and intent, shaping the future of beauty and personal care in India,” said Alagh.

Analysts views on Q2 performance

JM Financial said Honasa’s profitability was “significantly ahead of expectations” and highlighted that Mamaearth’s growth revival and 20% YoY growth in younger brands indicate sustained traction across the portfolio. The brokerage noted that initiatives to revive Mamaearth are showing results, with management optimistic about returning to double-digit growth by Q4FY26. JM Financial raised its FY26–28 earnings estimates by 2–5% and upgraded the stock to ‘BUY’ with a DCF-based target price of ₹330 (earlier ₹325), citing improved outlook and strong margin momentum.

ICICI Securities maintained a positive stance, noting that Q2 reaffirmed Honasa’s focus on category leadership, innovation, and distribution expansion. The firm retained its ‘BUY’ rating with a price target of ₹400, citing broad-based brand momentum and a steady growth outlook.

The brokerage pointed out that Mamaearth’s growth returned to double digits, while The Derma Co. maintained leadership in sun care. With younger brands now contributing over 50% of revenues, ICICI said Honasa enters H2FY26 on a strong footing, supported by margin tailwinds, new launches such as Luminéve (premium skincare) and Fang (oral care), and a balanced portfolio.

Emkay Global, however, remained cautious, retaining its ‘SELL’ rating with a target price of ₹250 (Sep-26E). While acknowledging the EBITDA margin beat (8.9%) and an 18% EBITDA surprise, it noted that changes in Flipkart’s settlement structure impacted margin recognition — with a 140 bps negative effect on gross margin and a 50 bps positive impact on EBITDA. Emkay trimmed its FY26–27 topline estimates by 1–3%, though it raised earnings forecasts by 6–15% to factor in margin strength and accounting adjustments.

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