Nykaa rises 4% to 1-mth high on Q3 result; analysts hike target price
The scrip increased as much as 4.1 per cent to ₹271.80, the highest level since January 5 on the National Stock Exchange (NSE)
 "Nykaa rises 4% to 1-mth high on Q3 result; analysts hike target price")
Nykaa share price today
Nykaa share price rose over 4 per cent, to the highest level in a month, on Friday following the announcement of the company's third-quarter (Q3FY26) results. Brokerages have hiked target price on the stock, lauding its strong performance in the quarter. The scrip increased as much as 4.1 per cent to ₹271.80, the highest level since January 5 on the National Stock Exchange (NSE)
Around 12.5 million shares of FSN E-Commerce Ventures have changed hands on NSE so far. The company had a market capitalisation of ₹76,720 crore.
As of 10:39 AM, Nykaa share price was trading 3.6 per cent higher at ₹269.5, as against a 0.5 per cent decline in the Nifty 50 index.
Why did Nykaa share price rise today?
Nykaa's parent FSN E-commerce share price rose in Friday's session as the company reported that its net profit more-than-doubled in the December quarter (Q3FY26). Most brokerages have upgraded the stock rating and raised the target price, which triggered a bullish momentum in the stock price.
FSN E-Commerce Ventures reported a 156 per cent year-on-year (Y-o-Y) net profit to ₹68 crore in the third quarter from ₹26 crore in the same period a year ago. The revenue from operations increased 27 per cent Y-o-Y to ₹2,837 crore from ₹2,267 crore.
Take a look at what brokerages said following FSN E-Commerce Ventures’ earnings release.
Nomura | Upgrades to Buy from Neutral | Target raised to ₹305 from ₹262
FSN E-Commerce Ventures reported earnings in line with Nomura's estimates. The brokerage believes that Nykaa’s strong reach, franchise, and investments in newer brands may drive visibility. The significant under-penetration in India can aid the strong growth momentum.
The brokerage maintained the beauty and personal care (BPC) segment’s revenue-growth estimates of 28 per cent and 25 per cent, respectively, for the financial years 2027 and 2028. Meanwhile, Nomura raised the fashion segment’s topline-growth estimates to 28 per cent and 24 per cent, respectively, from 22 per cent and 20 per cent earlier.
Nomura hiked the earnings before interest, taxes, depreciation, and amortisation (Ebitda) margins expectation by 20 basis points, 40 bps, and 50 bps to 7.4 per cent, 8.7 per cent, and 9.8 per cent for the financial years 2026, 2027, and 2028, respectively. The high margin in the beauty and personal care (BPC) will drive the growth.
Nykaa's focus on advertisement revenue, better product unit economics, and efficiency benefits can drive further margin expansion, the brokerage said in a note.
FSN E-Commerce stock was trading at 4.7 times the estimated financial year 2027 enterprise value and sales. The brokerage believes it to be attractive, given a 45 per cent Ebitda compound annual growth rate (CAGR) and potential to sustain 25 per cent growth rate after the financial year 2028.
ICICI Securities | Add | Target raised to ₹300 from ₹280
The recovery in advertisement spending could incrementally improve investors’ sentiment about FSN E-Commerce Ventures, according to ICICI Securities. The fashion segment is on track to break even by the fourth-quarter (Q4FY26).
Continued profit improvement in the fashion segment and sustained revenue growth in the third-quarter are other key positives for Nykaa. The brokerage estimates the company's Ebitda will grow by 11.2 per cent in the financial year 2027. and 10.1 per cent financial year 2028, respectively.
In case the competition weakens in the beauty and personal care (BPC) segment, it may act as a trigger for further upside, according to the brokerage.
Among key downside risks for FSN E-Commerce Ventures, chasing growth at higher levels may dilute the margin, success in the fashion business could be difficult given it’s a intence competition category, ICICI Securities said.
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