Honasa Consumer Gets Nod to Acquire 25% Stake in Couch Commerce  

Introduction

Honasa Consumer Ltd (NSE: HONASA), the parent company behind the popular personal care brand Mamaearth, is back in the spotlight after receiving board approval to acquire 25% share capital of Couch Commerce Pvt. Ltd., which owns the ‘Fang Oral Care’ brand.
The investment, valued at up to Rs. 10 crore, will be made through subscription of Compulsory Convertible Preference Shares (CCPS), strengthening Honasa’s entry into India’s fast-growing oral care segment.

The announcement was approved at the company’s Board meeting held on 12 November 2025.
Following the news, Honasa Consumer’s stock surged 6.61% to Rs. 300.60 on the BSE, with over 1.25 lakh shares traded during the session.
The scrip has touched an intraday high of Rs. 308.55 and remains one of the most actively tracked consumer stocks this week.

Now, let’s take a closer look at Honasa’s business, financial performance, and what this latest acquisition means for investors.

 

About the Company

Incorporated in 2016, Honasa Consumer Limited (HCL) is India’s largest digital-first beauty and personal care (BPC) company by revenue in FY24. The company operates popular brands such as Mamaearth, The Derma Co., BBlunt, Aqualogica, and Ayuga, offering toxin-free, science-backed skincare, haircare, and wellness products.

According to Euromonitor (CY23), Mamaearth ranks as the third-largest skincare brand in India. Honasa follows an omni-channel model, combining e-commerce with offline retail presence, and continues to expand its reach through innovative, nature-based formulations.

Product Portfolio: Skincare, haircare, body care, baby care, oral care, and color cosmetics designed for safety and efficacy.

 

Key Facts

Honasa Consumer provides a diverse range of personal care and wellness products under its multi-brand portfolio. The company continues to strengthen its presence across India through digital channels and expanding offline retail partnerships.

 

Honasa Consumer Moves in 2025

• November 2025: Received Board approval to acquire 25% stake in Couch Commerce Pvt. Ltd., owner of the Fang Oral Care brand, for up to Rs. 10 crore.
  
  

• September 2025: Expanded offline retail presence with new exclusive brand outlets across major Tier-II cities.
  
  

• August 2025: Reported 32% YoY revenue growth in Q1 FY26, led by robust e-commerce sales and rising demand for The Derma Co. and Aqualogica.
  
  

• May 2025: Launched a new range of premium skincare products under The Derma Co. to strengthen its dermatology-backed product segment.
  
  

• February 2025: Announced milestone of recycling over 400 metric tonnes of plastic, advancing its sustainability commitment.

 

Evolution and Corporate Journey

 

Financial Performance Overview

Quarterly Results Snapshot (Rs.  crore)

Key Insight : Honasa delivered consistent profitability in FY25 and H1 FY26, led by growing e-commerce sales and strong brand performance across Mamaearth, The Derma Co., and Aqualogica.

 

Yearly Comparison (FY24 vs FY25)

Honasa Consumer reported moderate revenue growth in FY25, though net profit softened due to higher marketing expenses and brand investments. The company maintained healthy operating margins amid increased product launches and retail expansion.

 

Balance Sheet Highlights

 

Insight : Honasa maintained a strong equity base with minimal borrowings, reflecting a healthy balance sheet. Rising reserves and assets indicate steady internal accruals and expanding brand investments through FY25 and H1 FY26.

 

Cash Flow Summary

 

Honasa generated positive operating cash flow for a second consecutive year, supported by improved working capital management. The negative net cash flow in FY25 reflects ongoing investments in brand expansion and digital infrastructure.

 

Shareholding Pattern (Q2 FY26)

 

Promoter holding in Honasa Consumer remained stable at around 35 %, while institutional participation rose marginally, signaling continued investor confidence. Retail shareholding also showed steady activity during Q2 FY26.

 

Peer Comparison

 

While Honasa Consumer trades at a relatively higher P/E multiple compared to established FMCG peers, its rapid revenue growth and evolving brand portfolio position it as a high-growth digital-first player in India’s personal care sector.

 

Corporate Actions 

• Board Meeting: The most recent meeting was held on November 12, 2025, to review and approve the company’s Q2 FY26 financial results.
  
  

• Acquisition Approval: The Board also approved the acquisition of a 25% stake in Couch Commerce Pvt. Ltd., which owns the Fang Oral Care brand, for up to Rs. 10 crore.
  
  

• Dividend History: Honasa Consumer Ltd. has not declared any dividends since its incorporation.
  
  

• Bonus History: The company has not issued any bonus shares since January 1, 2000.
  
  

• Stock Split History: Honasa Consumer Ltd. has not undertaken any stock splits during this period.

 

 Upcoming Plans

• Expansion into the oral care and men’s grooming segments through strategic investments.
  
  

• Enhancement of offline retail presence across 1,000+ stores by FY26.
  
  

• Launch of AI-driven personalized skincare tools on its digital platforms.
  
  

• International market expansion across Southeast Asia and the Middle East.
  
  

• Strengthening R&D and innovation to develop science-backed personal care solutions.

 

Strengths and Risks

Strengths

• Strong profit growth of 47.75% over the past three years.
  
  

• Robust revenue growth of 26.04% during the same period.
  
  

• Debt-free balance sheet ensuring financial stability.
  
  

• Healthy interest coverage ratio of 8.99, reflecting solid repayment capacity.
  
  

• Efficient cash conversion cycle of –146.64 days, showcasing operational efficiency.
  
  

• Sound liquidity position with a current ratio of 2.12.

 

Risks

• Low ROE (1.87%) and ROCE (3.92%) over the past three years.
  
  

• EBITDA margin of –55.19% over the last five years, indicating pressure on operating profitability.
  
  

• Valuation remains steep with a P/E of 77.01 and EV/EBITDA of 43.50, suggesting limited margin for error.

 

Market Performance and Investor Sentiment

Market sentiment around Honasa Consumer remains broadly positive, supported by its strong Q1 FY26 performance and steady demand across skincare and color cosmetics. Investors continue to view the company as a high-growth digital-first player, backed by solid cash reserves and an active product innovation pipeline. While increased competition and category slowdowns pose challenges, Honasa’s expanding distribution network and entry into new segments help sustain long-term optimism. Overall, the outlook remains constructive as the company strengthens its position in a market set for rapid growth in the coming years.

 

Strategic Outlook (2026 and Beyond)

Honasa Consumer is expected to expand its multi-brand portfolio, strengthen offline distribution, and scale AI-led personalization across digital platforms. With a strong cash position, the company may continue selective acquisitions to enter new categories. Backed by ongoing innovation and rising demand in BPC, Honasa is well-placed to sustain growth and enhance its presence in both domestic and international markets.

 

Investor View

Investors remain cautiously optimistic on Honasa Consumer, supported by steady revenue growth, a strong balance sheet, and an expanding brand portfolio. While valuations remain on the higher side, continued innovation, improving offline reach, and disciplined capital allocation keep long-term sentiment positive. The stock may see volatility, but the company’s growth strategy offers meaningful potential for patient investors.

 

Conclusion

Overall, Honasa Consumer continues to strengthen its position in the fast-growing beauty and personal care market through innovation, brand expansion, and disciplined financial management. With a solid growth outlook and increasing market presence, the company remains well placed to capture emerging opportunities and deliver long-term value.

 

Frequently Asked Questions

1. What has Honasa Consumer announced recently?
Honasa Consumer received board approval to acquire a 25% stake in Couch Commerce Pvt. Ltd., the owner of the Fang Oral Care brand, for up to Rs. 10 crore.

 

2. Why is this acquisition important?
The deal strengthens Honasa’s presence in the oral care segment, helping the company expand beyond skincare and haircare into high-growth categories.

 

3. How did the market react to the news?
Honasa Consumer’s stock jumped 6.61%, reflecting positive investor sentiment and interest in the company’s expansion strategy.

 

4. Is Honasa Consumer financially stable?
Yes. The company is virtually debt-free, maintains healthy liquidity, and continues to generate positive operating cash flow.

 

5. What are the key risks for the company?
The main risks include high valuations, low return ratios, and increasing competition in the personal care market.

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