SynopsisHonasa Consumer, Mamaearth's parent company, saw its shares surge after reporting a 177% year-on-year jump in net profit to Rs 69 crore for Q4 FY26. Revenue also climbed over 23% to Rs 657 crore, with EBITDA soaring 186%. Analysts from CLSA and Jefferies maintain positive ratings, citing strong growth momentum and improving execution.AgenciesHonasa shares surged on strong Q4 resultsShares of Honasa Consumer, the parent company of Mamaearth, soared as much as 10.55% to Rs 398 on the BSE on Friday after 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, as compared to Rs 533 crore revenue reported in the corresponding quarter of FY25. EBITDA surged a whopping 186% YoY to Rs 77 crore, while EBITDA margin more than doubled to 11.7% during the quarter under review.Honasa shares: Buy, sell or hold?Honasa Consumer received a positive outlook from CLSA, which maintained its “Outperform” rating on the stock with a target price of Rs 434 (21% upside).CLSA highlighted three key takeaways from the quarter. First, Mamaearth delivered growth in the teens and management expects double-digit growth momentum to continue. Second, offtake growth in both general trade and modern trade rose 30% year-on-year, indicating improving brand traction. Third, operating leverage, despite a softer base, helped EBITDA exceed expectations by more than 140 basis points.The brokerage said Honasa still has a long runway for scaling brands through its focus categories and hero products. It also noted that execution of the Mamaearth turnaround continues to improve and expects margin expansion to sustain going ahead.Wall Street major Jefferies maintained its “Buy” rating on Honasa Consumer with a target price of Rs 565, a staggering 57% upside. The brokerage said that after navigating one of its toughest phases during distribution realignment, Honasa has returned to a strong growth trajectory. Jefferies noted that performance improved further in the March quarter, led by mid-teen growth in Mamaearth, continued strong momentum in newer brands and margins touching record highs.It added that the company’s guidance of high-teen revenue growth along with 100 basis points of annual EBITDA expansion points towards a compounding growth story, which could bring investor attention back to the stock.Honasa Consumer management commentary“FY26 was a year of strengthening the core and building a more resilient growth engine for the future. Over the last few quarters, we stayed sharply focused on the six pillars that defined our strategy for the year - improving execution across our Focus Categories, strengthening Product Superiority, scaling Hero Products, sharpening our content engine, rebuilding momentum in Offline Distribution, and unlocking Innovation Engines,” said Varun Alagh, Chairman, CEO and Co-founder of Honasa Consumer.He added that the momentum is now visible across brands and channels. “Mamaearth continued to gain market share across key categories, according to NielsenIQ. Our Hero SKUs grew 2x+ faster than the brand, led by products like Ubtan Face Wash and Onion Shampoo, as well as newer launches such as Rice Face Wash and Rosemary Anti-Hair Fall Shampoo, which continue to scale meaningfully. Our younger brands also maintained strong momentum, growing 40%+ during the year. In its first quarter of consolidation, Reginald Men crossed an ARR of INR 100 Cr+, doubling its revenue YoY,” he said.Alagh further added that the company’s investments across AI-led content systems, R&D, product innovation, and distribution infrastructure are beginning to reflect in stronger execution quality across the organization. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. 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