Honasa surges 8% after flagging strong Q2 revenue, margin improvement

Honasa Consumer Limited shares surged over 8 percent in early trading on Tuesday after the company released a positive operational update for the Q2 FY27 quarter. The stock, which opened at ₹449.00, reached a high of ₹493.00 and traded at ₹478.20 by midday, up ₹36.10 or 8.17 percent from its previous close. Over 1.83 crore shares were traded that day, generating approximately ₹877 crore in volume.

Buy orders accounted for 77 percent of total order flow. Honasa forecasted that net sales would grow in the early-thirties percent year-on-year, with Mamaearth, its largest brand, expected to contribute high-teens YoY growth, driven by stronger brand affinity and expanded offline presence. The company’s other brands, including The Derma Co., Aqualogica, and others, are projected to accelerate growth to around the mid-forties percent YoY.

Both General Trade and Modern Trade channels are expected to perform well, along with online channels. Honasa anticipates an early double-digit EBITDA operating margin for Q2 FY27. The stock has risen about 68 percent year-to-date, outpacing the Nifty 500’s 7.5 percent decline over the same period. It trades at a trailing P/E multiple of 57.81.