Market Performance
The Honasa Consumer share price soared nearly 14% on May 23, hitting a five-month high of ₹314. The rally comes in response to the company's robust operational performance in the fourth quarter of FY25 despite declining bottom-line profitability.
- The monthly gain in May so far: +26%
- April gain: +6.3%
- March gain: +8%
Even with this strong recovery, the stock is:
- 42% below its all-time high of ₹547
- Trading 4.4% below its IPO price of ₹324
Q4FY25 Financial Highlights
Despite a drop in net profit, Honasa Consumer's Q4FY25 results show encouraging signs in revenue and operational efficiency. Here's a snapshot:
Revenue
- ₹534 Crore, up 13% YoY (Q4FY24: ₹471 Crore)
- Underlying volume growth: 21.2%
EBITDA
- ₹27 crore, down from ₹33 crore in Q4FY24
EBITDA Margins
- Declined to 5.1% from 7% a year ago
Net Profit
- Q4FY25: ₹25 crore
- Q4FY24: ₹30.5 crore
Full-Year Financials (FY25)
- Revenue: ₹2,066.9 crore, up 8% from ₹1,919.9 crore in FY24
- Net Profit: ₹72.6 crore, down 32% from ₹110.5 crore in FY24
Gross Margin
- 70.7% in Q4FY25, improved by 76 basis points YoY
- Gains driven by a better product mix and operational efficiencies
Company Overview
Honasa Consumer Ltd, parent to the popular personal care brand Mamaearth, continues to attract investor interest despite recent earnings pressure. The brand, which debuted in November 2023, saw a remarkable initial rally—reaching ₹547 per share in August 2024.
However, the stock faced a prolonged correction post-peak before making a strong comeback in March 2025. Current price levels reflect renewed investor confidence in the company's strategic direction and improving fundamentals.
Summary
The sharp jump in the Honasa Consumer share price reflects growing investor optimism about the company's future. Despite a fall in net profits, healthy double-digit revenue growth, rising gross margins, and robust volume expansion have signaled strong underlying performance.
As the company continues to optimize its operations and product mix, market participants are closely watching future earnings for further signs of sustainable growth.
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