Honasa Consumer shares hit its 20 percent lower circuit in the morning session on November 18 after the parent company of D2C brand Mamaearth shared a weak earnings report for the quarter ended September, reporting its first quarterly loss in five quarters.

At 9.20 am, Honasa Consumer shares tumbled 20 percent to its lower circuit of Rs 297.25 on the NSE. Shares of Honasa Cosumer fell below their IPO price of Rs 324 per share, following the fall.

In the July-September period, Honasa Consumer incurred a loss of Rs 19 crore, versus a profit after tax of Rs 29 crore reported in the year-ago period, and also saw its revenue decline 7 percent from Rs 496 crore to Rs 462 crore on a year-on-year. The total expenses surged 9 percent YoY but were down sequentially at Rs 506 crore.

The downturn has been attributed to the company’s ongoing transition to a direct-to-consumer (D2C) distribution model as part of its Project 'Neev', which has necessitated inventory corrections.