[Update] Honasa Shares Rally 20% After Q4 Results

Update | May 23, 05:15 PM

Mamaearth parent Honasa’s shares further soared by almost 20% to INR 330.50 apiece on the BSE intraday trading session today (May 23), and it ended the day 19.8% higher at INR 330.20 per share on the BSE.

Since the start of this year, the stock has gained 8% in value, as of its previous close, while it lost a little over 34% in the past 52-week period.

Meanwhile, the Indian broader market indices BSE Sensex closed 0.95% higher at 81,721.08, while Nifty 50 was up 0.99% at 24,853.15 today.

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Original | May 23, 12:30 PM

Shares of Honasa Consumer soared over 17% to INR 322.70 apiece on the BSE intraday trading session today (May 23), a day after reporting March quarter of financial year (Q4 FY25) results.

As of 12:20 PM, the stock was up 16.5% at INR 320.80 per share on the BSE, compared to its previous close of INR 275.45 apiece on Thursday (May 22).

Honasa’s market capitalisation currently stands at INR 10,431.89 Cr ($1.21 Bn).

The company’s revenue from operations rose 13.3% to INR 533.6 Cr in Q4 FY25 from INR 471 Cr in the same period last year. Despite strong topline performance, Honasa’s bottomline in the quarter under review declined 18% to INR 25 Cr from INR 30.4 Cr in Q4 FY24.

Further, Honasa also said it grew its offline distribution in FY25, with 1.2 Lakh unique outlets billed during the year as against 45,000 in Q1 FY25, and it has nearly completed its transition to its new direct distribution model across India’s top 50 cities.

With the shares surge for the day, Honasa marked its best day since November 18, 2024.

Meanwhile, the Indian broader market indices BSE Sensex was up 0.92% at 81,695.41, while Nifty 50 was up 0.95% at 24,843.95, as of 12:21 PM today.

It is to note that the company has recorded profit for the second straight quarter after slipping into the red in Q2, posting a net loss of INR 18.6 Cr hurt by ongoing transition to omnichannel operations from super-stockist-led model to direct distributor model.

This drove the stock down by 20% to its then 52-week low of INR 295.80 apiece, in November last year.

However, the stock’s upturn reflects the faith in its reviving financial performance, despite the slump it faced in the past few months on the back of its omnichannel expansion efforts, regulatory issues as well as volatile broader market so far this year.

Almost a year-long courtroom drama between Honasa and its distributor RSM General Trading LLC finally drew in favour of Honasa as Dubai’s top court in April, where the Court of Cassation overturned the Appeal Court’s decision, calling it “flawed, defective and lacking reasoning”.