Honasa Consumer shares have surged 44% so far in 2026 to ₹413, demonstrating strong momentum following the company's impressive Q4FY26 results. According to CNBC TV18, the stock has risen nearly 50% so far in 2026 and has gained over the last two trading sessions. The rally comes after ICICI Securities hiked its target price to ₹500, implying a potential upside of 22% from current market levels, as reported by Moneycontrol. The brokerage reiterated its high conviction Buy rating and maintains Honasa as its top pick, highlighting improving growth visibility, sharpening execution, and a stronger path to profitability. Multiple reports suggest the company demonstrates founder-led agility, strengthened corporate governance architecture, and rigorous capital efficiency even as its business model undergoes a digital-to-offline evolution.
Honasa Consumer outlined its goal of crossing ₹5,000-5,500 crore in revenue over the next five years, implying a compound annual growth rate (CAGR) of 16-18% from FY26 revenue of almost ₹2,400 crore. According to CNBC TV18, CLSA maintained its 'Outperform' rating with a price target of ₹462 per share after the management outlined its medium-term growth plans. The company's 'Honasa 2.0' strategy is aimed at delivering industry-leading revenue and EBITDA growth, with operating margins expected to expand beyond 15% over time. Revenue growth ambitions would be met by scaling core brands Mamaearth and The Derma Co. to about ₹3,750 crore; building the young brands portfolio to ₹1,500 crore; and expanding into new categories such as nutraceuticals, fragrances and oral care to bring in another ₹250 crore. The strategy centers on faster and more accurate product innovation, enhanced product quality, personalised marketing and wider distribution reach, supported by investments in technology capabilities.
Honasa's challenging phase of distribution realignment has now eased significantly. According to CNBC TV18, the company has seen six-fold growth in direct distribution in the past two years, increasing its reach to about 120,000 outlets and aims for more than 300,000 outlets by FY31. The company has also deployed more than 30 artificial intelligence (AI) agents across six core corporate functions to automate workflows and aid improve decision-making. Mamaearth's growth was in the teens last quarter, while younger brands including The Derma Co., Aqualogica, Dr. Sheth's, BBlunt Staze and BTM Ventures (Reginald Men), grew more than 40%. The Derma Co. continues to deliver strong growth, maintaining a double-digit EBITDA profile, highlighting the benefits of the company's 'house of brands' strategy.
Honasa Consumer delivered strong March quarter (Q4FY26) results, with revenue at ₹657 crore marking 23% growth versus a year ago, representing a multi-quarter high. According to CNBC TV18, while gross margin contracted 40 basis points year-on-year to 70.3% in Q4FY26, EBITDA margin expanded 669 bps to 11.75%, driven by operating leverage and lower intensity on ad spends. The company reported consolidated net profit of ₹69.4 crore for the March quarter of FY25-26, representing a massive 178% year-on-year surge from the ₹24.9 crore net profit reported in the corresponding quarter of the previous financial year. The previous quarter's profit stood at ₹50.2 crore, showing consistent growth momentum.
The company plans to expand EBITDA margins by 500 basis points to 15% by FY31 from approximately 10% in FY26. According to CNBC TV18, EBITDA margin expansion would be aided by increased salience in higher margin channels, operating leverage, changing category mix, and the benefits of scale. The company aims to become the national market leader in at least two skincare categories, while securing a top-three market share position in at least two additional categories. A greater mix of general trade, modern trade, and quick commerce is also expected to support margin expansion. The margin expansion strategy is designed to unlock around 500 basis points of improvement through operational efficiencies and channel optimization.
