Honasa Consumer, the parent company of D2C brands like Mamaearth, The Derma Co, and BBlunt, witnessed a 20% surge in its share price after reporting a robust 93% year-on-year (YoY) increase in net profit to Rs 29.4 crore for Q2FY24. 

Shares of Honasa hit a record high of Rs 423.75 and were locked in at 20% upper circuit from the last closing price on the National Stock Exchange (NSE). The stock opened at nearly a 10% jump at Rs 387.95 apiece. 

The net profit of Honasa Consumer nearly doubled to Rs 29.4 crore in Q2FY24 compared to Rs 15.1 crore in the same period last year. The company recorded a profit of Rs 24.7 crore in the previous quarter (Q1FY24).

The consolidated revenue from operations for Q2FY24 reached Rs 496.10 crore, marking a robust YoY growth of 20.9%. YoY volume growth of 27% contributed to the impressive revenue performance.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 53% YoY to Rs 40 crore, with an improved EBITDA margin of 8.1%.

Mamaearth, the flagship brand, provides safe and natural beauty products free from harmful toxins. The positive financial results and market response reflect Honasa Consumer’s strong position in the D2C space, driven by the success of Mamaearth and other brands in its portfolio. Dr Sheth’s, a brand in Honasa’s portfolio, joined the Rs 150 crore club in annual recurring revenue.