Here’s what the street cheered about Honasa Consumer’s Q4 results and what analysts say

Honasa Consumer shares surged over 6% today after the company delivered a strong Q4FY26 performance that exceeded Street expectations on both growth and profitability fronts.

The stock climbed as much as 10.4% intraday to hit a fresh 52-week high of ₹398 on the NSE before trimming gains. At around 11:13 AM, the stock was trading 6.19% higher at ₹382.80.

The rally followed Honasa Consumer’s robust March quarter earnings, where the company reported 28% year-on-year revenue growth to ₹682 crore, while EBITDA and PAT more than doubled. The company also announced its maiden final dividend of ₹3 per equity share.

Brokerages highlighted three major positives from the quarter — improving growth in the flagship Mamaearth brand, continued momentum in younger brands and sharp margin expansion driven by operating leverage.

CLSA maintained its “Outperform” rating on the stock with a target price of ₹434. The brokerage said Honasa reported revenue growth of 23% YoY, or 28% excluding accounting changes, which was ahead of both its estimates and Street consensus.

According to CLSA, volume growth stood at 30%, while EBITDA margin expanded by over 650 basis points year-on-year, leading to EBITDA beating estimates by a wide margin.

The brokerage noted that Mamaearth returned to mid-teen growth and management expects double-digit momentum to continue. CLSA also pointed to strong offtake growth of around 30% YoY across general trade and modern trade channels, indicating improving brand traction.

Another key positive highlighted by CLSA was the operating leverage-led profitability improvement, with EBITDA margin exceeding expectations by over 140 basis points. The brokerage said it remains constructive on Honasa’s long-term brand scaling opportunity across focus categories and hero SKUs.

Jefferies also reiterated its “Buy” rating on the stock and assigned a target price of ₹565.

The brokerage said Honasa appears to have moved past its most challenging phase related to distribution realignment and is now firmly back on a strong growth trajectory.

Jefferies highlighted that the fourth quarter showed improving performance across the board, including mid-teen growth in Mamaearth, continued strong momentum in younger brands and record-high margins.

The brokerage added that management’s guidance of high-teen revenue growth along with annual EBITDA margin expansion of around 100 basis points strengthens the long-term compounding narrative for the company.

Management commentary also remained optimistic, with the company saying its investments in AI-led content systems, innovation and offline distribution are beginning to translate into stronger execution quality and sustained profitable growth.

Disclaimer: This article is based on brokerage reports, company commentary and market data. Investors are advised to consult certified financial advisors before making investment decisions.