ICICI Securities has retained its ‘Buy’ rating on Honasa Consumer, the parent company of Mamaearth, and sharply raised its target price to ₹720 from ₹600. The revised target implies a potential upside of nearly 50% from the stock’s recent market price of around ₹479.
The bullish call comes after Honasa delivered a strong performance in the June quarter, with the results helping address investor concerns around the revival of Mamaearth and the company’s ability to build large brands beyond its flagship business. ICICI Securities said the stronger growth trajectory and improving profitability support higher earnings estimates and valuation.
Strong Q1 FY27 Performance
Honasa Consumer reported its highest-ever quarterly profit in Q1 FY27. Consolidated profit after tax rose 116.5% year-on-year to ₹90 crore, compared with ₹41 crore in the same quarter last year.
Revenue from operations increased 27% YoY to ₹756 crore, while EBITDA surged nearly 141% to ₹110 crore. EBITDA margin also improved sharply to 14.6% from 7.7% a year earlier.
The company’s like-for-like revenue growth was around 32%, while volume growth stood at approximately 30.5%, highlighting that the improvement was supported by stronger underlying demand rather than only pricing.
Mamaearth Growth Makes a Comeback
One of the biggest positives for investors was the performance of Mamaearth.
According to ICICI Securities, Mamaearth returned to high-teens growth, led by its focus categories. Focus categories across Honasa grew more than 35%, while the company’s younger brands recorded growth of more than 40%.
The company also highlighted strong product momentum. Mamaearth’s Rice Dewy Bright became its number-one face cleanser, while Rosemary emerged as its second hair ingredient category to cross the ₹100 crore annual recurring revenue milestone after Onion.
The Derma Co Crosses ₹1,000 Crore ARR
The Derma Co continued to be another major growth engine for Honasa.
The brand crossed a ₹1,000 crore annualised revenue run rate, while its face-cleanser category crossed ₹200 crore ARR. The company said The Derma Co has now entered its “Teens EBITDA Club,” reflecting improving profitability alongside growth.
Honasa’s younger brands also maintained strong momentum, growing more than 40% year-on-year, supported by products across Gen Z-focused innovation, premium serums, men’s skincare, hair colour and sunscreen.
Offline Distribution Expands
Honasa is also seeing stronger traction beyond digital channels.
General Trade and Modern Trade both grew more than 40%, while the company’s retail footprint crossed approximately 3 lakh FMCG outlets.
ICICI Securities believes the combination of category expansion, stronger offline distribution and scaling younger brands could make Honasa’s growth increasingly broad-based and less dependent on Mamaearth alone.
ICICI Securities’ ₹720 Target
ICICI Securities has increased its DCF-based target price for Honasa Consumer to ₹720 from ₹600, while retaining its Buy recommendation.
At a reference price of ₹479, the ₹720 target represents an upside of roughly 50%. The brokerage continues to identify Honasa as its preferred pick within the consumer space.
The brokerage believes the company’s strong Q1 performance supports the case that its “House of Brands” strategy is gaining scale. It expects Honasa to remain on track toward its FY31 revenue and margin guidance.
Stock Hits 52-Week High
Investor optimism was visible in Friday’s trading session. Honasa Consumer shares rose as much as 5% to ₹501.55, hitting a fresh 52-week high following the strong Q1 results. The stock has more than doubled from its 52-week low of ₹248.55 recorded in December 2025.
However, investors will continue to watch execution in areas such as category expansion, offline distribution and quick-commerce growth, which ICICI Securities has identified as key monitorables.
