Honasa Consumer Co-Founder Varun Alagh Raises Stake via ₹50 Crore Block Deal

Honasa Consumer, the parent company of Mamaearth, has disclosed that its co-founder and promoter Varun Alagh has increased his equity stake through a ₹50 crore block deal, reinforcing promoter confidence in the company’s long-term prospects.

According to a regulatory filing dated December 29, 2025, Alagh acquired 18,51,851 equity shares, representing 0.57% of Honasa Consumer’s total share capital, at a price of ₹270 per share. The total transaction value stood at approximately ₹50 crore.

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Promoter Holding Strengthens Further

Following the acquisition:

• Varun Alagh’s total shareholding has increased to 10,55,82,701 equity shares
• This translates to 32.45% of the company’s total share capital
• The aggregate holding of the promoter and promoter group now stands at 35.54%, or 11,56,48,401 equity shares

The move is widely interpreted as a strong vote of confidence from the promoter at a time when Honasa Consumer is showing improving financial performance and sharpening its strategic focus.

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Recent Strategic Expansion Moves

The stake increase comes close on the heels of aggressive portfolio expansion by Honasa Consumer.

Entry into Men’s Grooming

The company recently acquired a 95% stake in BTM Ventures Pvt Ltd, the owner of Reginald Men, a South India–focused men’s grooming brand. The acquisition was executed via a secondary transaction valued at ₹195 crore, marking Honasa’s deeper push into the fast-growing men’s personal care segment.

Oral Care Bet

In the quarter ended September 2025, Honasa also acquired a 25% stake in Couch Commerce Private Limited, the parent company of Fang Oral Care, for a consideration of up to ₹10 crore.

Together, these moves underline Honasa’s strategy of building a multi-brand, digital-first FMCG portfolio across adjacent and high-growth categories.

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Improving Financial Performance Adds Momentum

Honasa Consumer has also reported a notable turnaround in profitability.

For Q2 FY26 (September quarter):

• Profit after tax (PAT): ₹39.2 crore
• Compared to a loss of ₹18.5 crore in the same quarter last year
• Revenue rose 16.5% YoY to ₹538 crore, up from ₹462 crore in Q2 FY25

The improvement reflects stronger operating leverage, disciplined cost management, and steady growth across its core brands, including Mamaearth.

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What the Stake Increase Signals

Promoter stake increases via block deals are often closely watched by markets, as they provide insight into insider conviction.

Varun Alagh’s move signals:

• Confidence in Honasa’s growth trajectory
• Belief in its brand expansion strategy
• Optimism around sustained profitability and execution

At a time when many consumer internet and D2C companies are still navigating margin pressures, Honasa’s improving fundamentals and promoter actions stand out.

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Final Takeaway

Varun Alagh’s ₹50 crore stake purchase reinforces the narrative that Honasa Consumer is entering a more mature phase of growth—characterised by portfolio diversification, profitability improvement, and long-term strategic clarity.

With a stronger promoter holding, expanding FMCG footprint, and visible financial turnaround, Honasa appears well positioned to consolidate its place in India’s competitive digital-first consumer goods landscape.