Honasa Consumer Ltd Margin ahead of expectations: Q4 review

Research evidence excerpt

Honasa Consumer Ltd Margin ahead of expectations: Q4 review

J P M O R G A N Asia Pacific Equity Research

22 May 2026

Honasa Consumer Ltd Underweight

HONA.NS, HONASA IN

Margin ahead of expectations: Q4 review Price (21 May 26):Rs360.50

▲Price Target (Mar-27):Rs315.00

Prior (Mar-27):Rs275.00

Honasa’s Q4 EBITDA was ahead of our estimates, aided by better-than-expected

gross margin delivery even as revenue was marginally above our forecasts. Consumer, Retail, Media

Looking ahead, management targets a high-teens revenue CAGR over the next five Latika Chopra, CFA AC

years, with Mamaearth expected to deliver a double-digit CAGR driven by (91-22) 6157-3584

distribution expansion and young brands continuing to drive outsized growth. latika.chopra@jpmorgan.com

Calibrated price increases have already been executed in Q1 FY27 to offset crude- Himanshu Singh

driven RM inflation. HONASA aims to grow margins by 100 bps every year over (91-22) 6157-3610

himanshu.x6.singh@jpmorgan.com

the next few years led by improved mix and marketing efficiencies. Mamaearth

Saransh S Gokhale

improved its growth trajectory with mid-teens growth, while the younger brands

(91-22) 6157 3578

clocked 28% y/y (organic) growth, with DD EBITDA margin of The Derma Co. saransh.gokhale@jpmchase.com

Post margin-led beat, we raise our FY27/28E earnings estimates by 6%/1%. Our J.P. Morgan India Private Limited, J.P. Morgan

new Mar-27 PT is Rs315. Tower,Registration:Santacruz(E),INH000001873,Mumbai (91-22)- 400098,6157-3000.SEBI

• Revenue growth. Honasa posted 28% (LTL) revenue growth in Q4. Ex- Key Changes (FYE Mar)

Reginald Men organic LTL growth was 21% driven largely by volume growth.

Prev Cur Δ

Focus categories (face cleanser, shampoo, face serum, suncare, moisturizer, Revenue - 28E (Rs mn) 29,445 30,875 4.9%