Honasa Shares Slip 7% During Intraday

Shares of Mamaearth parent Honasa Consumer slipped 6.7% to INR 307.90 during the intraday trading session on the BSE today after its bottomline shrank 18% in the fourth quarter of the financial year 2025 (Q4 FY25). 

With a drop in its share price, the company’s market capitalisation stood at INR 10,141 Cr with more than 22 Lakh shares trading hands by 11:21 AM.

At the time of writing, the stock recouped some of its losses and was trading 5.4% lower from its previous close (May 23) on BSE. 

The drop in Honasa’s stock price came after it emerged as the biggest winner last week among the new-age tech stocks under Inc42’s coverage. The stock rallied 20% rally to reach INR 330.50 during the Friday trading session, a day after the company announced its Q4 results.

In the quarter ended in March, Honasa Consumer’s consolidated net profit declined to INR 25 Cr from INR 30.4 Cr in Q4 FY24 due to a fall in margins. On a quarter-on-quarter (QoQ) basis, its bottom line dropped 3.8% from INR 26 Cr.

However, the D2C brand’s topline expanded 13.3% to INR 533.6 Cr during the quarter under review from INR 471 Cr in the same period last year. Sequentially, its revenue from operations rose 31% from INR 517.5 Cr. 

Honasa’s EBITDA margin during the period under review dropped 1.9 percentage points to 5.1% from 7% in Q4 FY24. 

Notably, for the full fiscal year FY25, net profit declined 34.2% to INR 72.7 Cr from INR 110.5 Cr in the previous year. 

In FY25, its operating revenue rose 7.6% to INR 2,066.9 Cr from INR 1,919.9 Cr in the previous year. 

The slump in Honasa’s share price today is in contrast with a uptick in BSE Sensex and NSE Nifty as India has become the fourth largest economy surpassing Japan. Citing International Monetary Fund (IMF) data, NITI Aayog CEO BVR Subrahmanyam said that the country has now become a $ 4 Tn economy.

What Brokerages Have To Say?

Brokerage firm ICICI Securities maintained its ‘BUY’ rating on D2C Brand Mamaearth’s parent on the back of strong recovery and revenue growth. 

ICICI has cut their EPS estimates for FY26 by 13% due to delay in margin recovery while largely maintaining their FY27 estimates.

The brokerage has set the target price for Honasa at INR 400 which is a 21.13% increase from its last close.

“We expect in revenue/ EBITDA/PAT CAGRs of 16/96/85 (%) over FY25–27E. Maintain BUY with a DCF-based target price of INR 400,” said the brokerage note. 

It also highlighted that Mamaearth has sharpened focus in key categories, gaining 98bps and 22bps YoY in face wash and shampoo, respectively.

The Derma Co scaled to INR 1,000 Mn ARR in offline, while other brands gained traction in quick commerce and skincare adjacencies, it said.

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.

The company is leveraging artificial intelligence to boost its operations. In its investor presentation, Honasa said it has turned to Agentic AI workflows across its operations. 

For instance, Mamaearth’s AI-based Purchase Assistant assists shoppers with curated product recommendations, while the company also uses in-house AI-based “social listening” tools to track consumer sentiment and identify emerging trends. 

Shares of Honasa closed the trading session 4.57% lower at INR 315.10 on the BSE today.