Varun Alagh Steps In as Fireside Ventures Cuts Honasa Stake Further; Shares Jump Over 6%

Honasa Consumer promoter Varun Alagh has increased his stake by 57 bps in the beauty and personal care (BPC) major. The company’s founder and CEO added nearly 18.52 lakh shares via a bulk deal valued at ₹50 crore. 

Alagh bought shares from Bengaluru-based venture capital firm Fireside Ventures at a price of ₹270 apiece, a minor premium of 0.6% over the Friday closing price of ₹268.45 on the National Stock Exchange (NSE). 

Before the deal, Alagh’s stake in the company stood at 31.88%, which represents nearly 10.37 crore shares till September 30, 2025. On the other hand, Fireside Ventures held 1.93% stake representing 62.90 lakh shares in Honasa as of September 30, 2025. 

However, after the deal, Fireside’s stake has come down to 1.36% representing 44.38 lakh shares in the company. It is pertinent to note that Fireside has been backing Honasa since its seed round. But the VC firm has been reducing its stake since the company’s IPO in October 2023.

At the time of IPO, Fireside held 10.5% stake in the BPC major. But now, it has come down to nearly 1%. Varun’s wife, Ghazal Alagh, is also a promoter in the company with 3.06% equity.

Honasa Share Price

Honasa Consumer’s shares closed at ₹276.20 on the NSE on Monday, up nearly 3% from Friday’s close. Despite the uptick, the stock, which got listed on Indian bourses in November 2023, remains about 15% below its IPO issue price of ₹324. 

The counter has seen notable swings, with Trendlyne data showing a one-year beta of 1.1, indicating higher-than-average volatility.

After the block deal, Honasa Consumer’s shares jumped to ₹295.30 on the NSE today, rising ₹18.30, or 6.61%, during the session. The stock posted a strong intraday gain, reflecting positive investor sentiment.

Honasa Consumer Financials

On the financial front, Honasa Consumer posted a consolidated net profit of ₹39 crore in the second quarter of FY26, marking a sharp turnaround from a net loss of ₹18.57 crore in the year-ago period.

The company’s revenue from operations grew 16% year-on-year to ₹538 crore in Q2 FY26, compared with ₹461.8 crore in the same quarter last year, while expenses rose only marginally to ₹505 crore. EBITDA for the quarter came in at ₹48 crore, translating into an EBITDA margin of 8.4%. 

Commenting on the performance, Varun Alagh said the company’s focus categories continued to contribute more than 75% of total revenues, underscoring the effectiveness of its category-first strategy, supported by deeper distribution and sustained brand-building efforts across the country.

“....quarter brought strong category wins, with Mamaearth back in green, strengthening its leadership in face cleansers with a 123 bps share price (NielsenIQ),” he added. 

Honasa’s Expansion Plans

The secondary transaction comes as the Mamaearth parent steps up efforts to reduce its dependence on its core brand and broaden its portfolio. The company has recently entered the men’s personal care segment through the acquisition of BTM Ventures, the parent of D2C brand Reginald Men’s, for ₹195 crore.

Earlier this year, it also agreed to acquire a 25% stake in Fang Oral Care for ₹10 crore, while the previous quarter saw its entry into the prestige skincare space with the launch of Luminve. 

Together, these moves signal a clear push towards portfolio diversification, even as newer brands gain prominence over Mamaearth. The company said in an earnings call earlier this year that labels such as The Derma Co, BBlunt, Aqualogica, Dr Sheth’s and Staze Beauty are now driving its growth strategy.