Key facts
- Honasa Consumer shares surged 6% to ₹438.
- The company targets ₹5,500 crore in revenue by FY31.
- Goldman Sachs raised its price target to ₹400 while maintaining a Neutral rating.
- Honasa reported a 177% YoY net profit increase to ₹69 crore in Q4 FY26.
- Revenue grew over 23% YoY to ₹657 crore in Q4 FY26.
Honasa Consumer shares surged 6% to ₹438 on the BSE, driven by the company's ambitious revenue target of ₹5,500 crore by the financial year 2031. This outlook implies a compound annual growth rate of approximately 18% between FY26 and FY31.
Mamaearth is expected to remain the primary growth engine, with projected revenues exceeding ₹2,000 crore by FY31. The Derma Co is anticipated to contribute nearly ₹1,500 crore during the same period. Honasa also plans to introduce at least two more brands capable of generating ₹500 crore in revenue each.
In addition to revenue growth, Honasa aims to expand its EBITDA margins to 15% by FY31, a 500-basis-point improvement. This is expected to be achieved through a stronger presence in higher-margin channels and categories, coupled with economies of scale and operational efficiencies. The company intends to significantly increase its direct outlet network from the current 1.2 lakh to 3 lakh by FY31, with a greater mix of general trade, modern trade, and quick commerce channels.
Following these developments, Goldman Sachs raised its price target for Honasa to ₹400, a level the stock has already surpassed. The brokerage maintained a Neutral rating, citing a balanced risk-reward profile at current valuations. However, Goldman Sachs increased its earnings estimates for FY27-FY29 by 1-4% due to faster anticipated profitability improvement.
In its Q4 FY26 financial snapshot, Honasa Consumer reported a substantial 177% year-on-year increase in consolidated net profit to ₹69 crore, up from ₹25 crore in the prior year. Revenue from operations grew over 23% YoY to ₹657 crore in the same quarter. Over the past six months, Honasa shares have climbed 64%, and they have risen approximately 50% in 2026.