Honasa Fined By J&K Authority Over Discrepancy On Product Price

SUMMARY

The Jammu & Kashmir authorities have fined Honasa Consumer, the parent entity of D2C unicorn Mamaearth, after flagging a mismatch in unit sale prices on its product

Honasa has received an order from the Office of the Assistant Controller Legal Metrology Kulgam, J&K, regarding a compounding fee of INR 50,000 which has been imposed on the company and its nominated director / executive

At the time of writing, shares of Honasa were trading at INR 431.7 apiece on the BSE, up 0.05% from the previous close

The Jammu & Kashmir authorities have fined Honasa Consumer, the parent entity of D2C unicorn Mamaearth, after flagging a mismatch in unit sale prices on its product.

In an exchange filing yesterday (October 7), the company said it received an order from the Office of the Assistant Controller Legal Metrology Kulgam, Jammu & Kashmir, regarding a compounding fee of INR 50,000 which has been imposed on the company and its nominated director / executive.

“Unit sale price on the product is not calculated to correct place of decimal as prescribed under Rule 6(11) of Legal Metrology (Packaged Commodities) Rules, 2011,” the filing read.

Honasa said that barring the amount of the fine imposed on it, it does not expect any additional impact on the financials or operations of the company due to the order.

At the time of writing, shares of Honasa were trading at INR 431.7 apiece on the BSE, up 0.05% from the previous close.

Founded in 2016 by the husband-wife duo Varun and Ghazal Alagh, Honasa’s product portfolio comprises six beauty and personal care brands which include Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt and Dr. Sheth’s.

The company posted a 63% jump in its profit after tax (PAT) to INR 40.2 Cr in the June quarter of the financial year 2024-25 (FY25) from INR 24.7 Cr in the same quarter of previous year on the back of increase in the sales of its beauty products.

Operating revenue grew 19.3% on a year-on-year (YoY) basis to INR 554 Cr in the reported quarter.

However, shares of Honasa have been under huge selling pressure lately, with the stock having tanked almost 17% over the last month.

Last month, investors Peak XV Partners, Fireside Ventures, Stellaris Venture Partners, among others, dumped Honbasa shares worth INR 1,601.68 Cr via bulk deals.