Honasa Consumer Ltd (HONASA IN) Upgrade to Hold: Turnaround implemented

Research evidence excerpt

Honasa Consumer Ltd (HONASA IN) Upgrade to Hold: Turnaround implemented

11 June 2026

Honasa Consumer Ltd EquitiesPersonal Products

(HONASA IN)

Upgrade to Hold: Turnaround implemented India

◆ At its analyst day, Honasa guided for revenue/EBITDA CAGRs UPGRADE TO HOLD

of 18%/28% over FY26-31 (EBITDA margin +500bps to 15%)

TARGET PRICE (INR) PREVIOUS TARGET (INR)

◆ Company seems to have a proper playbook now in place for

384.00 290.00 offline expansion and repeat of FY25 hiccups seem unlikely

SHARE PRICE (INR) UPSIDE/DOWNSIDE◆ Incorporate Reginald acquisition; lift estimates, target multiple

to 40x; raise TP to INR384 (INR290); u/g to Hold (from Reduce) 407.95 -5.9%

(as of 09 Jun 2026)

Core Brands – Mamaearth (ME) and The Derma Co (TDC): The company expects MARKET DATA

Market cap (INRm) 132,659 Free float 36%

revenues of its Core Brands combined to reach c.INR38bn by FY31 vs a combined Market cap (USDm) 1,391 BBG HONASA IN

INR18-19bn in revenues in FY26, thus potentially doubling in scale over this five-year 3m ADTV (USDm) 10 RIC HONA.NS

period. ME’s target is to reach c.INR20bn by FY31, implying 10-11% CAGR on an FINANCIALS AND RATIOS (INR)

FY26 base of c.INR12bn in revenues. This implies TDC could scale to c.INR18bn or Year to 03/2026a 03/2027e 03/2028e 03/2029e

HSBC EPS 6.15 7.43 9.20 10.77so vs a current base of c.INR6.4bn, implying a strong 22% CAGR. Note that FY26 HSBC EPS (prev) 6.16 7.15 8.30 9.63

brand revenues are based on our calculations since the company does not disclose Change (%) -0.1 3.9 10.8 11.9

Consensus EPS 5.55 7.41 9.08 10.69

them. Young Brands: The company expects the entire basket of ‘Young Brands’ to PE (x) 66.3 54.9 44.3 37.9

clock revenues of INR15bn by FY31 vs the current base of c.INR5bn, which implies a Dividend yield (%) 0.7 0.1 0.1 0.1