Shares of Honasa Consumer Ltd. climbed over 8% on Tuesday, reaching a high of Rs 478.20, following the company's optimistic provisional outlook for the second quarter of fiscal year 2027 (Q2 FY27). The parent company of popular brands like Mamaearth and The Derma Co. expects to report net sales value (NSV) growth in the early thirties on a year-over-year basis.
The projected strong performance is attributed to broad-based traction across Honasa Consumer’s key categories and brands. Mamaearth, the company's largest brand, is expected to maintain its growth momentum, forecasting high-teens year-over-year NSV growth for the quarter.
Younger Brands Accelerate Growth
Beyond Mamaearth, Honasa's portfolio of younger brands is anticipated to show even more accelerated growth. Brands such as The Derma Co., Aqualogica, BBlunt, Dr. Sheth's, Staze, Lumineve, and Reginald Men are collectively projected to achieve year-over-year NSV growth around the mid-forties in Q2 FY27.
This robust growth across the brand spectrum is driven by increasing brand affinity and a significant expansion of the company's offline footprint. Both General Trade and Modern Trade channels are expected to deliver strong growth. General Trade benefits from deeper direct distribution strategies, while Modern Trade sees enhanced performance through sharper execution at points of sale. The company also foresees continued strong momentum from its online business operations.
Focus on Profitability and Operating Margins
On the profitability front, Honasa Consumer remains focused on improving its EBITDA margin. The company expects to achieve an early double-digit operating margin profile in Q2 FY27, alongside substantial year-over-year gains during the period.
Honasa Consumer has clarified that this update is provisional and subject to a limited review by its statutory auditors. The disclosure is voluntary and should not be construed as definitive financial results or formal earnings guidance.