Honasa Consumer shares surged over 11% on Friday following exceptional Q4FY26 results that have caught the attention of multiple brokerages. The company reported a consolidated net profit of ₹69 crore for Q4FY26, registering a sharp 177% YoY increase from ₹25 crore in the corresponding quarter last year. According to reports from The Economic Times, the company achieved its highest-ever quarterly revenue on a year-on-year basis, with revenue from operations rising more than 23% YoY to ₹657 crore compared with ₹533 crore in Q4FY25. EBITDA climbed 186% YoY to ₹77 crore, while EBITDA margin more than doubled to 11.7% during the quarter. As per The Economic Times, the stock soared as much as 10.55% to ₹398 on the BSE following the strong results announcement.
The company's board approved its first-ever final dividend of ₹3 per equity share, subject to shareholder approval at the annual general meeting. As reported by The Economic Times, the proposed dividend amounts to nearly 51.2% of FY26 standalone profit after tax (PAT). For the full financial year FY26, Honasa Consumer reported a net profit of ₹200.2 crore, up 176% from ₹72.7 crore recorded in the previous financial year. The company's full-year revenue stood at ₹2,391.9 crore, marking a growth of nearly 16% over ₹2,066.9 crore reported a year ago. The dividend announcement "signals management's belief in the company's ongoing cash-generating capability," according to brokerage reports.
According to The Economic Times, Jefferies highlighted that focus categories grew over 20% in e-commerce and more than 30% each in modern trade offtakes and general trade secondary sales. The brokerage noted that the company's modern trade outlet reach has crossed 10,000 stores, while general trade remains one of the fastest-growing channels. CLSA maintained its 'Outperform' rating with a target price of ₹434, citing three key takeaways: Mamaearth delivered growth in the teens with management expecting double-digit momentum to continue, offtake growth in both general trade and modern trade rose 30% year-on-year, and operating leverage helped EBITDA exceed expectations by more than 140 basis points. ICICI Securities set a target of ₹500, reiterating the stock as their top pick within the consumer space, noting that Q4FY26 addressed concerns about Mamaearth's sustainable growth while building a wider portfolio.
As reported by The Economic Times, CLSA noted that Mamaearth continued to gain market share across key categories, according to NielsenIQ. The brokerage highlighted that Hero SKUs grew 2x+ faster than the brand, led by products like Ubtan Face Wash and Onion Shampoo, as well as newer launches such as Rice Face Wash and Rosemary Anti-Hair Fall Shampoo, which continue to scale meaningfully. Younger brands also maintained strong momentum, growing 40%+ during the year. In its first quarter of consolidation, Reginald Men crossed an ARR of ₹100 Cr+, doubling its revenue YoY. The company's investments across AI-led content systems, R&D, product innovation, and distribution infrastructure are beginning to reflect in stronger execution quality across the organization.
Jefferies sees up to 57% upside potential with a target price of ₹565, citing robust multi-channel growth, improving margins and stronger execution. As reported by The Economic Times, CLSA maintained its 'Outperform' rating with a target price of ₹434, while ICICI Securities set a target of ₹500. JM Financial maintained its 'Buy' rating and raised the target price to ₹420 from ₹375, implying an upside of 16.3%. The brokerages highlighted that Jefferies expects EBITDA margins to improve by 100 basis points annually, driven by operating leverage and lower operating expenses, including advertising spend optimization. JM Financial noted that faster growth in the higher-margin Mamaearth brand and scaling up of younger brands provide sufficient levers for further margin expansion.
According to The Economic Times, the stock has demonstrated strong momentum with 10% gains in 1 week, 12% in 1 month, 29% in 3 months and 41% in the last 1 year. With the latest surge of over 11%, the stock has now rallied 60% from its 52-week low of ₹248.55 hit in December 2025. The brokerages noted that scale leverage and marketing efficiencies expanded like-to-like EBITDA margins to 11%+, against estimates of 9.6%, with guidance for mid-to-high teen revenue growth and 100 basis points YoY EBITDA margin expansion remaining unchanged. Jefferies noted that Honasa has already taken product price hikes to offset raw material inflation and does not expect any material impact in the first quarter, with no further price hikes planned at present.
