Honasa Consumer Shares Jump 10% After Company Signals Strong Q2 Growth Across Mamaearth And Newer Brands
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Honasa Consumer shares rose as much as 10% after the company indicated strong growth in Q2 FY27. NSV is expected to rise in the early thirties, with Mamaearth and newer brands driving growth.
Honasa Consumer shares rose sharply on Tuesday, 6 October, after the company indicated that its September quarter was likely to see strong growth. The stock gained as much as 10% during the session, extending its rise for a second straight day.
In an exchange filing, Honasa Consumer said it expects the second quarter to be another strong period for the business, building on the growth seen in the June quarter.
Net Sales Value (NSV) is expected to increase in the early-thirties on a year-on-year basis during Q2. The company said growth has been broad-based across its key categories and brands.
At 11:58 AM, Honasa Consumer’s share price on the National Stock Exchange (NSE) stood at 476.20 apiece, up 7.67% from its previous day’s closing.
Mamaearth Expected To Grow In High Teens
Mamaearth, Honasa Consumer's largest brand, has continued to maintain its growth momentum over the past few quarters.
The company expects the brand's NSV to rise in the high teens during the September quarter. It attributed the expected growth to stronger consumer interest in the brand and its expanding offline presence.
Honasa's newer brands are also gaining scale. The company expects their combined year-on-year growth to accelerate to around the mid-forties during the quarter.
Offline Business Leads Growth
Honasa Consumer said its offline business remains the main growth driver. Both General Trade and Modern Trade are expected to report strong growth in the quarter.
The company is expanding its direct distribution network in General Trade, while better execution at stores is helping the Modern Trade business. The online channel is also expected to maintain its growth momentum during the quarter.
Honasa Expects Double-Digit Operating Margin
The company also expects an improvement in profitability during the September quarter. Honasa Consumer said it expects to report an early double-digit operating margin, along with strong year-on-year improvement.
The Honasa Q2 update points to growth across its main brands and sales channels, with Mamaearth continuing to expand while the company's younger brands are growing at a faster pace.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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