Revenue from operations also hit a record Rs 756 crore, registering a 27% YoY increase from Rs 595 crore in Q1FY26. Earnings before interest, taxes, depreciation and amortisation (EBITDA) surged 140.7% YoY to Rs 110 crore from Rs 46 crore, with EBITDA margin expanding to 14.6% from 7.7% in the same period last year.
Buy, sell or hold Honasa Consumer shares?
Wall Street major Jefferies maintains its Buy rating on Honasa Consumer with a target price of Rs 650, implying 39% upside. The brokerage said Honasa is ‘delivering beat after beat’ earnings. Further it said that FY27 margins are expected to improve by 150-200 bps.Growth remains the management’s priority, with the company prepared to increase investments as required, while innovation continues to be a key focus. Higher crude oil and packaging costs are expected to weigh on margins in Q2, although product price hikes should offset the impact. The Flipkart policy change will also be reflected in the base from Q2 onwards.
Emkay reiterates its Buy rating on Honasa Consumer while raising the target price by 10% to Rs 550 (14% upside) from Rs 500, based on 50x Jun-28E EPS. It said 1QFY27 results exceeded expectations, driven by strong margins, with revenue growing 27% YoY and coming in 3% above consensus estimates.
Honasa Consumer Q1 management commentary
Commenting on the results, Varun Alagh, chairman, CEO and co-founder of Honasa Consumer, said the company entered FY27 focused on building on the momentum generated in the second half of FY26. Alagh said Q1 had reinforced that the strategy was working, with growth coming from both core and younger brands.He added that the company’s Focus Categories grew 35%+, while demand strengthened across General Trade, Modern Trade and eCommerce. According to Alagh, the strategy the company had set out to build was now translating into performance.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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