Shares of Honasa Consumer, the parent company of Mamaearth, jumped nearly 12% in Tuesday’s trading session after the company said it expects strong growth and an early double-digit operating margin in Q2 FY27.
The stock touched a high of Rs 493 per share, gaining almost 12%. Investors later booked some profits, bringing the stock down to around Rs 480.25, still up 8.63% at around 11:45 am.
The rise came after Honasa Consumer shared its quarterly business update and said it expects another strong quarter, building on the momentum seen in Q1 FY27.
Honasa Expects Double-Digit Operating Margin
Honasa Consumer said it continues to focus on improving its EBITDA margin and expects the business to achieve an early double-digit operating margin in Q2 FY27.
The company also expects its Net Sales Value (NSV) to grow in the early thirties year-on-year during the quarter.
The growth is expected to come from strong performance across its key categories and brands.
Mamaearth Expected to Grow in High Teens
Mamaearth, Honasa Consumer’s largest brand, has continued to maintain its growth momentum over the past few quarters.
The company expects Mamaearth to report high-teens NSV growth year-on-year in Q2 FY27. The growth is being supported by stronger brand demand and the company’s expanding offline presence.
Honasa’s younger brands are expected to perform even faster, with NSV growth expected to reach around the mid-forties year-on-year.
Offline Sales Continue to Drive Growth
Honasa Consumer said offline sales remain a major growth driver.
Both General Trade and Modern Trade are expected to deliver strong growth during the quarter. General Trade is benefiting from deeper direct distribution, while better execution at retail points is helping Modern Trade.
Online sales are also expected to maintain their growth momentum.
The company’s focus on expanding its offline footprint is helping its brands reach more customers beyond major digital platforms.
Founder and Brand Portfolio
Honasa Consumer was founded by Varun and Ghazal Alagh and is best known for building Mamaearth into one of India’s major digital-first beauty and personal care brands.
Over time, the company has expanded its portfolio beyond Mamaearth with younger brands across beauty and personal care, giving it multiple growth engines.
Key Numbers
- 12% - near-term rise in Honasa Consumer shares
- Early 30s% - expected Q2 FY27 NSV growth
- Early double-digit - expected Q2 FY27 operating margin
With Mamaearth continuing to grow, younger brands gaining speed and offline distribution expanding, Honasa Consumer is expecting another strong quarter. The company’s focus now remains on balancing faster sales growth with better profitability.
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