Nykaa shares gain 5% as Q2 profit jumps multifold despite missing estimates

Nykaa shares rose after the company reported a 3.4-fold increase in net profit to ₹34.43 crore for the second quarter of FY26

Shares of FSN E-Commerce Ventures Ltd. rose over 5 per cent on Monday after the company reported a multifold jump in its net profit for the second quarter of the financial year 2026 (Q2-FY26).

 

The beauty retailer Nykaa's parent's stock rose as much as 5.34 per cent during the day to ₹259 per share, the biggest intraday rise since October 6 this year. The Nykaa stock pared gains to trade 4.5 per cent higher at ₹257 apiece, compared to a 0.45 per cent advance in Nifty 50 as of 10:20 AM. 

 

Shares of the company snapped a two-day fall and currently trade at 9.8 times the average 30-day trading volume, according to Bloomberg. The FSN E-Commerce Ventures share has risen 56 per cent this year, compared to an 8 per cent advance in the benchmark Nifty 50. Nykaa has a total market capitalisation of ₹73,543.12 crore.   FOLLOW STOCK MARKET UPDATES TODAY LIVE

Nykaa Q2 results 

The beauty retailer reported a 3.4 times jump in net profit to ₹34.43 crore in the second quarter of FY26, up from ₹10.04 crore year-on-year (Y-o-Y). However, the bottom line missed Bloomberg's consensus estimates. The company’s revenue from operations rose 25.1 per cent Y-o-Y to ₹2,345.98 crore in Q2FY26, up from ₹1,874.74 crore last year. 

 

In the first quarter of this financial year, the revenue stood at ₹2,154.94 crore. Notably, the revenue has been seeing a mid-20s growth consistently since the last 12 quarters, the company said. On a yearly basis, the expenses also increased 23.5 per cent to ₹2,297.59 crore.

 

Nykaa’s earnings before interest, taxes, depreciation, and amortisation for the quarter grew 53 per cent Y-o-Y to ₹159 crore, with margin expanding to 6.8 per cent in Q2FY26 from 5.5 per cent in Q2FY25. The company’s gross merchandise value (GMV) also increased 30 per cent YoY to ₹4,744 crore.   ALSO READ | Transformers and Rectifiers tanks 20%; why smallcap stock hit 52-week low? 

The company has an offline presence of 265 stores (up from 250 stores in the previous quarter) across 90 cities. Its cumulative customer base now stands at 49 million, with beauty customers being around 40 million.

 

Falguni Nayar, executive chairperson, founder, and chief executive officer of Nykaa, said, “Our performance this quarter reflects accelerated growth momentum across Nykaa, with each of our businesses contributing meaningfully to this trajectory. The beauty business continues to deliver consistently, achieving over 25 per cent GMV growth for several consecutive quarters. The fashion business delivered 37 per cent Y-o-Y GMV growth, complemented by the introduction of globally trending brands this year, such as GAP, Guess, and H&M, reinforcing our differentiated curation and growing appeal in premium fashion."  Brokerages on Nykaa stock | Nomura maintains 'Neutral' rating 

Nomura expects strong BPC growth to continue for Nykaa, led by multiple initiatives across domestic/export markets. Fashion recovery, it said, seems sustainable with new brand additions and store expansion to drive growth. The brokerage has, thus, revised BPC growth outlook to 27 per cent and 28 per cent Y-o-Y, from 26 per cent and 25 per cent earlier, through FY26-28, and Fashion to 35 per cent and 22 per cent (29 per cent and 17 per cent earlier).

 

"We raise our revenue estimates by ~4 per cent/6 per cent/7 per cent across both BPC (~2-5 per cent) and Fashion (8-15 per cent). We maintain Ebitda margin at 7.2 per cent/8.4 per cent/9.2 per cent, leading to 3-7 per cent increase in our EPS estimates for FY26-28F," it said with a 'Neutral' rating and a share price target of ₹262.