Honasa Consumer: ICICI Securities lifts TP to ₹550 in 2026

Why Honasa Consumer is back on the Street’s radar

Honasa Consumer, the parent of Mamaearth, is back in focus after ICICI Securities reiterated a constructive view on the stock. The brokerage pointed to improving growth visibility, sharper execution, and a clearer path to profitability as key reasons behind its stance. Honasa’s evolution from a largely digital-first play to a more balanced online-to-offline model also featured prominently in the thesis. ICICI Securities framed the company as a direct listed opportunity in India’s growing beauty and personal care market.

The renewed attention has also coincided with strong price action at different points over the past year, with sharp single-day moves and record volumes flagged in market commentary. For investors tracking the stock, the fresh note matters because it ties together a distribution reset, brand-level recovery, and medium-term margin expectations into one framework.

ICICI Securities reiterates BUY and raises target price

ICICI Securities reiterated its BUY recommendation on Honasa Consumer Limited and raised its target price to ₹550 from ₹500. The brokerage said the revision implies an upside potential of nearly 32% from the current market price of ₹417 mentioned in the note. It also described Honasa as its “top pick” within its coverage universe in the consumer space.

The report indicated that Honasa has moved beyond its distribution reset phase and is entering a more sustainable growth cycle. ICICI Securities linked this to stronger execution, expanding distribution reach, and improving profitability. While the note kept focus on Mamaearth’s recovery, it also highlighted Derma Co and emerging growth categories as additional levers for value creation.

Separately, the provided material also references a higher target price of ₹600 with a potential upside of 45% from the then-current market price. The same context includes older target prices such as ₹400 and a BUY call with ₹500 in earlier dated reports, indicating that the brokerage’s confidence and valuation framework have shifted across different notes.

What the brokerage says is changing in the business

ICICI Securities attributed its constructive stance to a combination of execution and structural changes inside the business. It highlighted founder-led agility, a strengthened corporate governance architecture, and tighter capital efficiency as key pillars that remain intact even as the model transitions further into offline distribution. The brokerage also said Honasa is not solely pursuing growth through launches, but is targeting “profitable product partitions” supported by AI implementation.

The report also pointed to improving earnings visibility over the medium term. It mentioned a longer-term revenue ambition of about INR 5,500 crore with EBITDA margin of about 15%+, framed as a pathway toward stable free cash flow generation.

Offline strategy reset and management communication

The note referenced management’s discussion around a change in offline strategy in 2024, describing it as transparent and reflecting higher confidence in the revised approach. That context matters because the stock’s recent narrative has included a “distribution reset” period, after which the brokerage believes the company is positioned for steadier growth.

ICICI Securities also said Honasa’s upcoming Analyst Meet is expected to focus less on near-term recovery and more on sustainability of growth, profitability, and the long-term shape of the business. In particular, it flagged investor expectations around Mamaearth returning to “teen growth,” better offline execution, and improved disclosures on channel mix and advertising and promotion efficiency.

Brand mix: Mamaearth, Derma Co, and newer categories

While Mamaearth remains central to Honasa’s financial narrative, ICICI Securities also pointed to Derma Co as a meaningful profit contributor. The brokerage’s framing suggests that a broader portfolio mix and newer categories could support profitability and reduce reliance on any single brand over time.

The note also referred to portfolio diversification benefits and the need for clearer articulation on the scalability of younger brands. For investors, that emphasis signals that the market is likely to judge Honasa not just on growth, but on how repeatable and profitable that growth is across brands and channels.

Earnings expectations and medium-term growth metrics

ICICI Securities said it has increased its earnings estimates and expects healthy revenue, EBITDA, and profit growth over the next two years, supported by margin expansion and portfolio diversification. In another dated context (June 2026), it said it increased earnings estimates for FY27 and FY28 by 2.3% and 5.8% respectively to reflect better revenue growth.

The material also cites modeled CAGRs over FY26-28E of 21% (revenue), 27% (EBITDA) and 23% (PAT). Another referenced framework (FY25-27E) cites revenue, EBITDA and PAT CAGRs of 16%, 96% and 85% respectively, alongside a DCF-based target price of INR 400 in an older note.

What the market has already priced in

Honasa Consumer has seen sharp single-day moves around results and broker commentary. In one market update, the stock rose about 10% intraday and closed with gains of around 6%, marking a fourth straight day of gains and the biggest single-day gain in a year, with the highest volumes on record.

In another episode tied to promoter activity, the stock surged over 6% to a one-month high of ₹299.40 on the NSE, with the highest single-day volume since November 13, 2025. That rally was linked to a promoter stake increase disclosed by founder-promoter Varun Alagh.

Promoter stake increase: the disclosed details

As per the disclosure referenced in the material, Varun Alagh acquired 18,51,851 equity shares, representing 0.57% of total share capital, through a block deal at ₹270 per share. The transaction value was approximately INR 49.99 crore.

After the acquisition, his shareholding rose to 10,55,82,701 equity shares, or 32.45% of the total share capital. The combined holding of the promoter and promoter group increased to 11,56,48,401 equity shares, translating into 35.54% of total equity.

Key risks flagged by the brokerage

ICICI Securities outlined several risks that could affect the investment case. These included heightened competition, an execution miss, low success in scaling up new brands, and any slowdown in Mamaearth. The list underlines that the brokerage’s bullish view remains conditional on delivery, especially as the company pushes deeper into offline distribution.

Key numbers at a glance

What to watch next

The upcoming Analyst Meet is positioned as a key event to clarify what sustainable growth and profitability could look like for Honasa as it evolves from digital-first brands into a scaled beauty platform. Investors are likely to track disclosures around channel mix, operating leverage, and medium-term margin aspirations, as highlighted in the note.

For the stock, near-term attention remains on whether Mamaearth sustains its recovery, whether Derma Co continues to expand its profit contribution, and whether offline execution remains consistent. ICICI Securities’ reiterated BUY and revised target price put the spotlight back on delivery against these milestones.