Honasa Consumer shares jump 4% after record Q1; Jefferies, Emkay forecast strong upside

Shares of Honasa Consumer, the parent company of Mamaearth, gained over 4% to Rs 501 on the BSE on Friday after reporting its highest-ever consolidated profit after tax (PAT) of Rs 90 crore, up 116.5% for the first quarter of FY27.

Revenue from operations also hit a record Rs 756 crore, registering a 27% YoY increase from Rs 595 crore in Q1FY26. Earnings before interest, taxes, depreciation and amortisation (EBITDA) surged 140.7% YoY to Rs 110 crore from Rs 46 crore, with EBITDA margin expanding to 14.6% from 7.7% in the same period last year.

Buy, sell or hold Honasa Consumer shares?

Wall Street major Jefferies maintains its Buy rating on Honasa Consumer with a target price of Rs 650, implying 39% upside. The brokerage said Honasa is ‘delivering beat after beat’ earnings. Further it said that FY27 margins are expected to improve by 150-200 bps.


Growth remains the management’s priority, with the company prepared to increase investments as required, while innovation continues to be a key focus. Higher crude oil and packaging costs are expected to weigh on margins in Q2, although product price hikes should offset the impact. The Flipkart policy change will also be reflected in the base from Q2 onwards.

Emkay reiterates its Buy rating on Honasa Consumer while raising the target price by 10% to Rs 550 (14% upside) from Rs 500, based on 50x Jun-28E EPS. It said 1QFY27 results exceeded expectations, driven by strong margins, with revenue growing 27% YoY and coming in 3% above consensus estimates.

The company also entered the fast-growing fragrance category with the launch of its FIKN brand. The brokerage expects growth to remain strong at more than 20% YoY in FY27E, led by low-double-digit growth in Mamaearth and more than 20% growth in The Derma Co.

It expects margins to expand by 330 bps over the next three years, mainly driven by operating leverage, and has raised earnings estimates by 9-13% over the next three years, primarily due to higher margins. Overall, it expects sales and earnings CAGR of 17% and 25%, respectively, during FY26-29E, with strong growth momentum expected to continue, led by a turnaround in the offline channel.

Honasa Consumer Q1 management commentary

Commenting on the results, Varun Alagh, chairman, CEO and co-founder of Honasa Consumer, said the company entered FY27 focused on building on the momentum generated in the second half of FY26. Alagh said Q1 had reinforced that the strategy was working, with growth coming from both core and younger brands.

He added that the company’s Focus Categories grew 35%+, while demand strengthened across General Trade, Modern Trade and eCommerce. According to Alagh, the strategy the company had set out to build was now translating into performance.

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