The Indian new-age tech sector experienced a mixed performance in the week ending May 23, 2025, with notable gains by Honasa Consumer and Delhivery, while several other companies faced downward pressure. This trend reflects both the resilience and challenges within the evolving tech landscape, influenced by global uncertainties and sector-specific dynamics.
Honasa Consumer’s Strong Q4 Performance Drives Stock Surge
Honasa Consumer, the parent company of Mamaearth, emerged as the biggest gainer among new-age tech stocks, with its shares soaring over 26% to close at INR 330.20. This rally followed the company’s announcement of its Q4 FY25 results, which marked the second consecutive profitable quarter after a previous loss in Q2 FY25.
Despite a slight 18% year-on-year decline in net profit to INR 25 crore, Honasa reported a healthy 13.3% increase in operating revenue to INR 533.6 crore, surpassing market expectations. The company’s gross margin improved to 70.7%, driven by a better product mix and operational efficiencies, while underlying volume growth reached 21.2%.
Honasa’s strategic shift to a new direct distribution model under ‘Project Neev’ is nearing completion across India’s top 50 cities, contributing to double-digit growth in key categories on e-commerce platforms. Analysts from JM Financial have given Honasa a ‘Buy’ rating with a price target of INR 300, citing the company’s margin improvements and better-than-expected revenue growth as positive indicators.
Delhivery Posts Profit and Market Cap Gains
Logistics major Delhivery also stood out with a 10.39% increase in its share price to INR 354.35, buoyed by its Q4 FY25 consolidated net profit of INR 72.6 crore, a significant turnaround from a loss of INR 68.5 crore in the same quarter last year. The company reported full-year profitability for FY25, with a net profit of INR 162.1 crore compared to a loss of INR 249.2 crore in FY24.
Delhivery’s revenue grew modestly by 6% year-on-year to INR 2,191.6 crore, though it missed revenue and EBITDA estimates slightly. The company’s EBITDA margin improved substantially to 10.8% in Q4 from 2.2% a year ago, reflecting better fleet utilization, higher yield, and operational leverage.
The management highlighted that Delhivery is the only profitable player in the logistics sector, with competitors facing rising losses. The acquisition of Ecom Express is expected to strengthen its market position further. Despite subdued growth in the B2C segment due to industry-wide volume declines and insourcing by clients like Meesho, Delhivery is optimistic about a gradual recovery and improved pricing power in FY26.
Sector Overview: Mixed Sentiments Amid Global Uncertainties
Overall, the new-age tech sector saw 19 out of 33 companies gain shares, while 14 faced declines ranging up to 10%. Other gainers included Go Digit, TBO Tek, Nazara Technologies, Ola Electric, Ather Energy, and Swiggy. Nazara, a gaming major, continued its upward trajectory with a 3.84% gain, supported by its acquisition of UK-based Curve Games to boost global expansion.
On the downside, stocks like EaseMyTrip and MobiKwik declined due to regulatory concerns and continued losses, respectively. EaseMyTrip’s shares dropped over 7% following investigations linked to its cofounder, while MobiKwik posted another loss-making quarter, leading to a 2.23% share dip.
The broader market sentiment was affected by global factors such as US-China tensions over AI chip usage, delays in US-India trade talks, and volatility in global bond markets. Foreign institutional investors withdrew approximately INR 11,591 crore, although domestic investors maintained confidence in India’s long-term growth prospects.
What This Means for Indian Investors and the Tech Ecosystem
The mixed week underscores the growing pains and opportunities within India’s new-age tech sector. Companies like Honasa and Delhivery demonstrate that with strategic pivots and operational discipline, profitability and growth can be achieved even amid challenging macroeconomic conditions.
For Indian investors, these developments highlight the importance of selective investing in firms with strong fundamentals, innovative business models, and clear paths to profitability. The resilience shown by domestic institutional and retail investors amid global uncertainties reflects confidence in India’s digital economy and its potential to deliver sustained returns.