Shares of Honasa Consumer, the parent of Mamaearth, jumped over 8% in early trading after the company projected strong year-on-year net sales growth and margin improvements for the second quarter of fiscal 2027, driven by offline channel expansion and accelerated performance of newer brands.
- Q2 FY27 net sales expected to grow by low 30% YoY
- Mamaearth and newer brands drive high teens and mid-forties growth respectively
- Offline channel expansion and distribution overhaul support growth
What happened
Honasa Consumer shares climbed as much as 8.2% to ₹478.20 on the BSE following a business update projecting robust growth for the quarter ended September 2026 (Q2 FY27). The company reported expectations of net sales value growth in the low thirties percentage on a year-on-year basis. This forecast is underpinned by expanding sales across core categories and brand portfolios, alongside improved operating margins anticipated to reach the low double digits.
Mamaearth, Honasa’s flagship brand, is expected to achieve high teens sales growth supported by expanding its offline presence and increasing brand penetration. Meanwhile, the company’s newer brands, including The Derma Co, Aqualogica, and Dr Sheth’s, among others, are projected to post net sales growth in the mid-forties. The company’s focus on foregoing an extensive number of categories to concentrate on key segments is beginning to yield stronger results.
Why it matters
This growth outlook highlights Honasa’s successful implementation of its multi-year Project Neev, which restructured offline distribution by eliminating the super-stockist layer and enabling more direct servicing of retailers through distributors. This new approach has strengthened both general trade and modern trade channels, which continue to record strong double-digit growth.
The volume increase in offline outlets, surpassing 300,000 FMCG retail points, combined with sustained online momentum, fortifies Honasa’s market position in India's competitive beauty and personal care sector. The company’s strategic focus on five core product categories for Mamaearth aligns with an industry-wide move to deepen expertise rather than broad diversification, mitigating risks observed in the past.
What to watch next
Investors and market watchers will closely monitor Honasa’s third-quarter performance to validate the sustainability of this growth trajectory, especially given the company's trajectory from the preceding quarter in which consolidated net profit more than doubled and EBITDA surged significantly. Any further margin improvements or expansion in new category success could cement its leadership status.
Additionally, Honasa’s plans to enter the nutraceuticals sector remain in focus after the proposed acquisition of Fluence Pharma was called off. The company’s stated commitment to exploring both organic and inorganic opportunities in this space suggests potential future diversification that could open new revenue streams.