The company’s revenue outlook implies a CAGR of about 18% between FY26 and FY31. Mamaearth is expected to remain the key growth driver, with revenue crossing Rs 2,000 crore by FY31, while The Derma Co is projected to contribute nearly Rs 1,500 crore during the same period.
Further, the company plans at least two more Rs 500 crore revenue-generating brands across the portfolio, it said in an investor presentation. It owns brands such as Aqualoga, BBlunt, Dr Sheth’s, and Reginald Men.
Honasa plans to expand EBITDA margins to 15% by unlocking a 500-basis-point improvement through a stronger presence in higher-margin channels and categories, alongside benefits from scale and operating efficiencies.
The company’s direct outlet network is targeted to grow from around 1.2 lakh outlets currently to 3 lakh outlets by FY31. A greater mix of general trade, modern trade, and quick commerce is also expected to support margin expansion.
Honasa aims to become the national market leader in at least two skincare categories, while securing a top-three market share position in at least two additional categories.
Following the development, Goldman Sachs raised the target price of Rs 400, which the company has already surpassed. The international brokerage has maintained a Neutral rating on the counter.
Reflecting faster profitability improvement, the brokerage has raised its FY27-FY29 earnings estimates by 1-4%. However, Goldman Sachs believes the stock’s risk-reward remains balanced at current valuations.
Honasa Q4 snapshot
The company reported a whopping 177% year-on-year (YoY) jump in consolidated net profit to Rs 69 crore for the fourth quarter of the financial year 2026, from Rs 25 crore in the year-ago period.
Honasa’s revenue from operations, meanwhile, jumped over 23% YoY to Rs 657 crore during Q4 of FY26, compared to the Rs 533 crore revenue reported in the corresponding quarter of FY25.
Honasa shares have risen 64% in the last six months and about 50% in 2026.
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