Latest news with #VarunAlagh
News18
4 hours ago
- Business
- News18
Honasa Consumer shares surge over 6 pc post-earnings announcement
New Delhi, Aug 13 (PTI) Shares of Honasa Consumer Ltd, which owns FMCG brands such as Mamaearth and The Derma Co, jumped over 6 per cent on Wednesday after the firm reported a 2.64 per cent increase in consolidated net profit during the June quarter. The stock surged 6.15 per cent to settle at Rs 284.60 on the BSE. During the day, it zoomed 13.68 per cent to Rs 304.80. At the NSE, it climbed 5.88 per cent to Rs 285.15. Honasa Consumer Ltd on Tuesday reported 2.64 per cent increase in consolidated net profit at Rs 41.32 crore for the first quarter of FY26, helped by volume gains. It had logged a profit after tax of Rs 40.25 crore in the April-June period a year ago, according to a regulatory filing from Honasa Consumer. 'Q1 FY26 marked a strong start to the year, with Honasa delivering its highest-ever quarterly revenue of Rs 595 crore and a record quarterly profit of Rs 41 crore, supported by a sequential improvement in EBITDA margin to 7.7 per cent," said Chairman and CEO & Co-founder Varun Alagh in the earnings statement of the company. Its gross profit margin improved to 71.2 per cent during the quarter, up 48 basis points. PTI SUM TRB (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: August 13, 2025, 17:30 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
10 hours ago
- Business
- News18
Honasa Shares Jump 13% On Strong Q1 Results; Jefferies Raises Target Price To Rs 400
Shares of Honasa Consumer, the parent company of beauty and personal care brand Mamaearth, surged 13%; Key points for investors Honasa Consumer Share Price: Shares of Honasa Consumer, the parent company of beauty and personal care brand Mamaearth, surged 13% to Rs 301 on the BSE on Tuesday after posting strong Q1 FY26 results. Global brokerage Jefferies reiterated its Buy rating with a target price of Rs 400, citing a 7% year-on-year (YoY) revenue growth, in line with estimates. While gross margins contracted by ~50 basis points (bps) YoY and advertising & promotion expenses rose 3%, EBITDA margin declined ~60 bps YoY to 7.7% but improved 2.6 percentage points sequentially. EBITDA remained flat YoY, but net profit posted marginal growth, both beating estimates. Jefferies raised its EBITDA forecast by 3–11%, noting that Honasa remains a 'high-risk, high-reward play." The brokerage highlighted that unseasonal rains weighed on sunscreen sales, limiting overall revenue growth to 7%, yet Honasa delivered a sequential EBITDA margin improvement—a notable beat. For the quarter ended June 2025, operating revenue rose 7% YoY to Rs 595 crore, supported by growth in focus categories, optimised operations, and scale benefits across brands. Net profit came in at Rs 41 crore, slightly higher than Rs 40 crore a year earlier, and up 65% sequentially from Rs 25 crore in Q4 FY25. Total expenses rose to Rs 563 crore from Rs 520 crore YoY, with major spends on traded goods purchases (Rs 171 crore), employee benefits (Rs 60 crore), and other costs (Rs 318 crore). 'It is a volume-led growth. This could have been higher if the early onset of the monsoon hadn't impacted our largest category—sunscreens," said cofounder and CEO Varun Alagh during the post-earnings call. EBITDA stood at Rs 47 crore, with margins expanding to 8% on the back of gross margin gains, increased offline sales contribution, and operating leverage. Alagh added that the company will continue focusing on efficiency to ensure bottom-line growth outpaces topline growth. Looking ahead, Honasa expects double-digit full-year growth in FY26, a rebound from FY25's 8% revenue rise. Mamaearth remains the flagship brand, while newer labels like The Derma Co, Aqualogica, Dr Sheth's, Bblunt, and Staze Beauty are growing over 20% YoY. Jefferies noted that focus categories, which account for 80% of revenues, recorded double-digit growth in Q1, driven by strong e-commerce performance and modest gains in other channels. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
11 hours ago
- Business
- Economic Times
Honasa shares soar 13% on Q1 beat, Jefferies predicts stock can rally up to Rs 400
Honasa shares: Global brokerage Jefferies maintained a 'Buy' rating with a target price of ₹400, noting 7% YoY revenue growth in line with estimates. Gross margin contracted ~50 bps YoY, while A&P spending rose 3%. EBITDA margin slipped ~60 bps YoY to 7.7% (+2.6 ppt QoQ). EBITDA was flat YoY, but net profit saw slight growth, both exceeding expectations. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Shares of Honasa Consumer , parent of beauty and personal care brand Mamaearth , soared 13% to Rs 301 on the BSE on Tuesday after announcing its Q1 results Global brokerage Jefferies maintained a 'Buy' rating with a target price of Rs 400, noting 7% YoY revenue growth in line with estimates. Gross margin contracted ~50 bps YoY, while A&P spending rose 3%. EBITDA margin slipped ~60 bps YoY to 7.7% (+2.6 ppt QoQ). EBITDA was flat YoY, but net profit saw slight growth, both exceeding expectations.'We raise EBITDA by 3-11% and maintain BUY with unchanged PT of Rs400. Honasa remains a high-risk/high-reward play,' it brokerage firm further said that the impact of unseasonal rains was visible from a modest 7% revenue growth (sunscreen impacted negatively), broadly in line with JEFe. Despite this, Honasa managed to see a sequential improvement in EBITDA margin, a company reported a 7% increase year-on-year in operating revenue to Rs 595 crore for the quarter ended June, driven by growth in focus categories as well as optimised operations and scale across net profit stood at Rs 41 crore, up slightly from Rs 40 crore a year ago. Sequentially, profit rose 65% from Rs 25 crore in the January-March company's total expenses for the first quarter of 2025-26 increased to Rs 563 crore from Rs 520 crore a year earlier. A significant amount of the expenditure was attributed to the purchase of traded goods, which amounted to Rs 171 crore, employee benefit expenses (Rs 60 crore), and other expenses (Rs 318 crore), according to a report by ETTech.'It is a volume-led growth. This growth could have been higher if the early onset of the monsoon had not taken place. There has been some impact on the largest category, which is sunscreen,' cofounder and CEO Varun Alagh said during a post-earnings analysts call on company reported earnings before interest, taxes, depreciation, and amortisation (Ebitda) at Rs 47 crore, with the Ebitda margin expanding 8%. 'This is on account of gross margin expansion and increased salience of the offline channel, as well as the scale leverage we've seen. We continue to work on efficiency and effectiveness levers to ensure that our bottom line grows faster than our topline as we move forward,' he fiscal 2026, Alagh had earlier said that the company expects the full-year growth to bounce back to double-digits. In FY25, Honasa Consumer recorded revenue growth of 8%.Mamaearth is the biggest brand in Honasa Consumer's portfolio, which also has brands such as The Derma Co, Aqualogica, Dr Sheth's, Bblunt, and Staze Beauty. The younger brands are growing over 20% YoY, Alagh said.'The growth was led by younger brands, which grew 20% YoY even while Mamaearth's portfolio continued to see an improvement. Honasa's focus categories (i.e., seven categories which contribute 80% to revenues) grew DD in 1Q, with DD growth in e-commerce and single-digit growth in other channels,' the Jefferies report said.
Time of India
11 hours ago
- Business
- Time of India
Honasa shares soar 13% on Q1 beat, Jefferies predicts stock can rally up to Rs 400
Honasa shares: Global brokerage Jefferies maintained a 'Buy' rating with a target price of ₹400, noting 7% YoY revenue growth in line with estimates. Gross margin contracted ~50 bps YoY, while A&P spending rose 3%. EBITDA margin slipped ~60 bps YoY to 7.7% (+2.6 ppt QoQ). EBITDA was flat YoY, but net profit saw slight growth, both exceeding expectations. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Shares of Honasa Consumer , parent of beauty and personal care brand Mamaearth , soared 13% to Rs 301 on the BSE on Tuesday after announcing its Q1 results Global brokerage Jefferies maintained a 'Buy' rating with a target price of Rs 400, noting 7% YoY revenue growth in line with estimates. Gross margin contracted ~50 bps YoY, while A&P spending rose 3%. EBITDA margin slipped ~60 bps YoY to 7.7% (+2.6 ppt QoQ). EBITDA was flat YoY, but net profit saw slight growth, both exceeding expectations.'We raise EBITDA by 3-11% and maintain BUY with unchanged PT of Rs400. Honasa remains a high-risk/high-reward play,' it brokerage firm further said that the impact of unseasonal rains was visible from a modest 7% revenue growth (sunscreen impacted negatively), broadly in line with JEFe. Despite this, Honasa managed to see a sequential improvement in EBITDA margin, a company reported a 7% increase year-on-year in operating revenue to Rs 595 crore for the quarter ended June, driven by growth in focus categories as well as optimised operations and scale across net profit stood at Rs 41 crore, up slightly from Rs 40 crore a year ago. Sequentially, profit rose 65% from Rs 25 crore in the January-March company's total expenses for the first quarter of 2025-26 increased to Rs 563 crore from Rs 520 crore a year earlier. A significant amount of the expenditure was attributed to the purchase of traded goods, which amounted to Rs 171 crore, employee benefit expenses (Rs 60 crore), and other expenses (Rs 318 crore), according to a report by ETTech.'It is a volume-led growth. This growth could have been higher if the early onset of the monsoon had not taken place. There has been some impact on the largest category, which is sunscreen,' cofounder and CEO Varun Alagh said during a post-earnings analysts call on company reported earnings before interest, taxes, depreciation, and amortisation (Ebitda) at Rs 47 crore, with the Ebitda margin expanding 8%. 'This is on account of gross margin expansion and increased salience of the offline channel, as well as the scale leverage we've seen. We continue to work on efficiency and effectiveness levers to ensure that our bottom line grows faster than our topline as we move forward,' he fiscal 2026, Alagh had earlier said that the company expects the full-year growth to bounce back to double-digits. In FY25, Honasa Consumer recorded revenue growth of 8%.Mamaearth is the biggest brand in Honasa Consumer's portfolio, which also has brands such as The Derma Co, Aqualogica, Dr Sheth's, Bblunt, and Staze Beauty. The younger brands are growing over 20% YoY, Alagh said.'The growth was led by younger brands, which grew 20% YoY even while Mamaearth's portfolio continued to see an improvement. Honasa's focus categories (i.e., seven categories which contribute 80% to revenues) grew DD in 1Q, with DD growth in e-commerce and single-digit growth in other channels,' the Jefferies report said.
Mint
a day ago
- Business
- Mint
With stellar Q1, Mamaearth parent signals recovery after distribution overhaul
After a challenging year spent overhauling its distribution model, Honasa Consumer Ltd, the parent of Mamaearth, has delivered its highest-ever quarterly revenue and profit. In the June quarter of FY26, Honasa's revenue rose to ₹ 595 crore and net profit to ₹ 41 crore, powered by double-digit growth in its core categories and fatter margins from quick commerce. In Q1, Honasa reported its highest-ever quarterly revenue of ₹ 595 crore and a profit of ₹ 41 crore, with earnings before interest, taxes, depreciation, and amortization (Ebitda) margin improving sequentially to 7.7%. Focus categories, which account for over 80% of its revenue, saw a double-digit year-on-year growth. Honasa's shares closed at ₹ 271on Tuesday. It is trading nearly 50% below its lifetime high of ₹ 547 hit in September last year. The turnaround suggests the worst of last year's post-'Project Neev' slump is behind the company. With focus segments like face cleansers, shampoos, sunscreens, and baby care now contributing over 80% of sales, and offline reach crossing 9,000 stores, Honasa is betting that a sharper category strategy and faster fulfilment channels will keep its momentum intact. The company expanded its offline distribution, increasing reach and visibility and continued to concentrate on select segments within core categories. 'In our offline stores, we aim to protect margins by focusing on carefully chosen categories with strong gross margins. These are selected to be market leaders, while evolving with customer needs, a reflection of our deliberate category strategy.' said Varun Alagh, co-founder and chief executive of Honasa, during a post-earnings call on Tuesday. Mamaearth's sunscreen revenue was ₹ 595 crore, up 7.4% year-on-year and 11.6% sequentially, with growth affected by the early onset of the monsoon. Mamaearth's focus categories products are now available in over 9,000 stores. The size of the sunscreen consumer cohort has risen to more than 50% of the segment. The category is projected to reach ₹ 5,000 crore in India by 2028, said Alagh. The offline channel accounts for about 15% of Honasa's revenue, with distribution across more than 9,000 general trade outlets, including 3,400+ chemist stores, and over 2,500 modern trade outlets., reflecting a wider physical store penetration, alongside its presence in other channels. However, quick commerce is delivering higher margins across all focus categories, including e-commerce. 'This is a very healthy sign, as any transition from other channels to quick commerce will be beneficial for us,' Alagh said. Honasa Consumer has completed a year-long overhaul of its distribution model, shifting from super-stockists to direct distributors under 'Project Neev'. The move has doubled the contribution of direct distributors to 71% from 38% and expanded its network to over 100,000 distributors in FY25. The transition led to operational challenges, strained distributor relationships, and cost the company about ₹ 70 crore in July–September, leading to a quarterly loss. While its Q4FY25 profit fell 17% to ₹ 25 crore, revenue grew 13% to ₹ 533 crore. The company plans to add 50,000 outlets to reach 150,000 direct distribution points next year.
