Honasa, Nykaa Rally Up to 4% Despite Subdued Market, Hit 52-Week Highs

Beauty Shares Advance as Growth and Margin Prospects Draw Attention

Honasa and Nykaa reached fresh 52-week highs even as the broader market slipped, extending strong gains this year.

Fresh highs stand out against a weaker market

Honasa Consumer, the parent of Mamaearth, climbed 4% to ₹516.25, while FSN E-Commerce Ventures, which operates Nykaa, rose 2% to ₹366. At 11:34 a.m., the BSE Sensex was down 0.33%, making the two stocks’ gains a notable contrast to the subdued market.

Honasa crossed its previous 52-week high of ₹509.90, recorded on August 14, 2026. Nykaa moved above its earlier peak of ₹364.70, touched on November 5, 2026. These are 52-week milestones, not all-time records: Honasa’s all-time high is ₹545.50, while Nykaa’s is ₹429.01.

The rally also extends a broader run. Over the past three weeks, Honasa gained 20% and Nykaa 15%. Their respective gains in calendar 2026 stand at 80% and 38%, compared with a 4% decline in the Sensex. The figures show how far the shares have outpaced the benchmark, but do not by themselves establish whether the advance can continue.

Honasa’s earnings and margin plans underpin optimism

Brokerage commentary points to business momentum as a key part of Honasa’s investment case. In Q2FY27, the company recorded its strongest growth since listing, with gains across brands and channels. Mamaearth grew at a high-teen rate, while The Derma Co. and newer brands were scaling; EBITDA and profit after tax doubled year on year.

Jefferies said distribution expansion could support the runway for newer brands and expects sector-leading revenue growth alongside improving profitability. Management is confident of maintaining a 12.5% margin trajectory in the second half and has retained its plan for 100–150 basis points of annual margin expansion over five years, reaching 15% in FY30. Planned innovation and a further expansion into hair colour are also part of the company’s stated priorities.

Jefferies assumes 20% revenue and 33% EBITDA compound annual growth over FY26–29 and has a ₹700 price target, valuing the company at 55 times estimated December 2028 earnings. ICICI Securities also reiterated a Buy rating and ₹700 target, citing core-brand momentum, emerging brands and margin expansion. These are brokerage estimates, not assured outcomes.

Nykaa’s growth story comes with a valuation debate

Nykaa’s Q2 performance offered support for the share, with EBITDA up 65% year on year and margins at a multi-quarter high. Beauty maintained healthy momentum, while Fashion delivered strong growth and remained at break-even. Its own brands continued to perform well, and the company expanded its reach and assortment. E-B2B activity moderated, though Jefferies expects it to pick up ahead.

Jefferies retained a Buy rating and ₹415 target, arguing that Nykaa’s valuation should be considered alongside its growth and margin momentum. Motilal Oswal, while expecting continued Beauty growth and improvement in Fashion, kept its estimates unchanged and maintained a Neutral rating with a ₹370 target. The difference underlines a key question for investors: how much of the growth outlook is already reflected in the share price?

Key Highlights

• Honasa gained as much as 4% and Nykaa 2% in Friday’s intraday trade, reaching fresh 52-week highs.
• Both shares have substantially outperformed the Sensex in calendar 2026, based on the figures provided.
• Honasa’s Q2FY27 EBITDA and profit after tax doubled year on year, with growth across brands and channels.
• Honasa’s management retained its long-term margin expansion plan, while brokerages see growth potential.
• Nykaa’s EBITDA rose 65% year on year, but brokerages differ on whether its valuation is justified.

Investor Note: The recent highs and positive earnings commentary are encouraging, but the sharp gains also raise the importance of valuation and execution. Investors may wish to assess each company’s growth and margin delivery against its share price rather than treating brokerage targets as forecasts or guarantees.