Synopsis: Shares surged up to 7% after reporting the strongest-ever quarterly performance, with topline rising 16% YoY and earnings jumping 92%. UVG stood at 30.2%, while focus and younger brands grew over 25%. Distribution expanded to 2.7 lakh outlets, supporting improved margins and renewed investor confidence.
The shares of the beauty and personal care products manufacturer jumped up to 7 percent in today’s trading session from an intraday high after the company reported its highest-ever Q3FY26 earnings.
With a market capitalisation of Rs 10,112.49 crore, the shares of Honasa Consumer Ltd were trading at Rs 310.70 per share, increasing around 4 percent as compared to the previous closing price of Rs 299.05 apiece.
Q3FY26 highlights
The shares of Honasa Consumer Limited have seen bullish movement after announcing its highest-ever Q3FY26 earnings, in which revenue increased by 16 percent on a year-on-year basis from Rs 505 crore in Q3FY25 to Rs 587 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue increased by 11 percent from Rs 527 crore in Q2FY26 to Rs 587 crore in Q3FY26.
Moreover, net profit increased by 92 percent on a yearly basis from Rs 25 crore in Q3FY25 to Rs 48 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit increased by 26 percent from Rs 38 crore in Q2FY26 to Rs 48 crore in Q3FY26.
Honasa Consumer Limited reported steady performance in Q3, with UVG at 30.2%, reflecting resilient consumer demand. Focus categories grew over 25%, while Mamaearth returned to double-digit growth backed by product superiority and sharper investments. Younger brands also scaled well, recording over 25% growth and strengthening the company’s diversified portfolio.
Moreover, the Derma Co. maintained strong momentum with a double-digit EBITDA profile while scaling efficiently. Offline expansion improved significantly, with direct outlet coverage crossing one lakh outlets and total distribution rising over 25% YoY to 2.7 lakh outlets. Continued product re-innovation, including strong traction for key launches, supported competitive positioning.
Varun Alagh, Chairman, CEO & Co-founder, Honasa Consumer Limited, highlighted that Q3 FY26 marked a milestone quarter with record revenue and sharply improved profitability. He emphasised strong momentum in focus categories, a return to double-digit growth for Mamaearth, healthy performance from The Derma Co., and over 25% growth in younger brands, while maintaining focus on margins and capital efficiency.
Ghazal Alagh, CIO & Co-founder, Honasa Consumer Limited, stated that innovation and re-innovation remain central to the company’s strategy. She highlighted strong consumer response to key products, reflecting superior formulations and efficacy. The company will continue strengthening fundamentals, investing in science-driven development, and focusing on disciplined execution to build sustainable, long-term growth.
As per the brokerage, HSBC retained a ‘Reduce’ rating with a target of ₹260 despite robust Q3 results and a notable EBITDA beat. While margin expansion led to higher earnings estimates for FY26–28, it emphasised that sustained and consistent growth delivery will be crucial to justify further re-rating.
Jefferies maintained a ‘Buy’ rating with a target of ₹500, citing double-digit growth in Mamaearth and faster expansion in younger brands. The brokerage noted improving margins and constructive management commentary. It believes the company is regaining momentum and has sharply upgraded earnings forecasts following the quarter.
Honasa Consumer Limited is a leading Indian beauty and personal care company known for building digital-first brands like Mamaearth and The Derma Co. Founded by Varun and Ghazal Alagh, the company focuses on innovation-led, science-backed products, targeting millennials and Gen Z consumers across online and offline channels.
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