FSN E-Commerce Ventures, the parent of Indian beauty retailer Nykaa, saw its shares surge another 6.2% in Friday’s trade on February 6, hitting a 1-year high of ₹274.45 apiece. This extended the stock’s winning run to a fourth straight session, as brokerages stayed bullish on the stock following the company’s better-than-expected performance in the December-ending quarter.
According to CNBC TV18Japanese brokerage firm Nomura upgraded Nykaa to a ‘buy’ from ‘hold’ and raised its price target to ₹305 from ₹261 earlier, implying an upside potential of 17% from Thursday’s closing price. Mint could not independently verify this report.
The brokerage expects the company’s EBITDA to sustain a compounded annual growth rate (CAGR) of over 25%, even after growing at a 45% CAGR in the past.
Meanwhile, domestic brokerage JM Financial also maintained its bullish stance on the stock, retaining its ‘buy’ rating with a target price of ₹325 apiece, signaling an upside potential of 25.8%.
The brokerage said Nykaa has delivered against the odds by improving margins while continuing to post industry-leading growth across segments. Going forward, it expects lower marketing spending and strong operating leverage to support profitability.
It expects the company to sustain growth momentum, with higher BPC profits gradually offsetting losses in eB2B, while the fashion segment is expected to turn profitable in FY26 itself.
JM Financial added that Nykaa remains one of the most sustainable compounding stories in the Indian internet space.
Nykaa Q3 2025 performance
The company reported a consolidated net profit of ₹68 crore in Q3FY26 ₹68 crore in Q3FY26, a 157% YoY jump, according to its consolidated financial statements filed on Thursday.
It posted a 27% rise in consolidated revenue from core operations to ₹2,873 crore over the corresponding period last year, while the EBITDA stood at ₹230 crore, a 63% year-on-year jump, with margins expanding 180 basis points to 8% in Q3.
The performance was boosted by strong demand for skincare and makeup products, with revenue from the beauty segment jumping 27% year-on-year to ₹2,622 crore in the December quarter, its filing showed.
The company achieved its highest-ever quarterly consolidated GMV of ₹5,795 crore in the December quarter, representing a 28% year-on-year increase, according to the company’s earnings filing.
Nykaa reported a 26% jump in annual unique transacting customers (AUTC) in the beauty segment to 18.7 million customers and a 33% increase to 4.1 million customers in the fashion vertical. Total orders in the quarter grew to 3 million, up 39% year on year.
Disclaimer: : We advise investors to check with certified experts before making any investment decisions.
