Nykaa shares rise 5% on posting healthy Q1; Time to buy or book profit?

FSN E-Commerce Ventures, which operates beauty and cosmetics brand Nykaa, shares gained 5.3 per cent on Wednesday, after the company released its June quarter (Q1FY26) results

FSN E-Commerce Ventures, which operates beauty and cosmetics brand Nykaa, shares gained 5.3 per cent on Wednesday, August 13, 2025, logging an intra-day high at ₹215.95 per share on BSE. The stock was in demand after the company released its June quarter (Q1FY26) results on Tuesday, post-market hours. 

 

At 9:55 AM, Nykaa share price was trading 3.49 per cent higher at ₹212.1 per share. In comparison, the Sensex was 0.29 per cent higher at 80,467.04.

Nykaa Q1 results recap

FSN E-Commerce Ventures reported a 79.3 per cent rise in net profit at ₹24.47 crore for Q1FY26, compared to ₹13.64 crore in the year-ago period. Sequentially, net profit grew 28.4 per cent.

 

 

Revenue from operations rose 23.41 per cent year-on-year (YoY) to ₹2,154.9 crore in Q1FY26 from ₹1,746.1 crore in Q1FY25. In the previous quarter, revenue stood at ₹2,061.7 crore.

 

Nykaa’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 46 per cent YoY to ₹141 crore, with margins expanding to 6.5 per cent from 5.5 per cent in Q1FY25. The company’s gross merchandise value (GMV) increased 26 per cent YoY to ₹4,182 crore.  Track Stock Market LIVE Updates

FSN E-Commerce Ventures (Nykaa) Q1 results analysis: Buy, sell or hold?

Nomura | Neutral | Target: ₹223

The brokerage believes Nykaa continued to deliver strong revenue growth for beauty and personal care (BPC) in challenging conditions. Growth pick-up for the fashion business is also a positive. Even though margins have been on an improving trend, they have been behind expectations (consensus FY26/27F at 7.4 per cent/8.6 per cent. Nomura largely maintained its revenue growth estimates for FY26/27F at 27 per cent/25 per cent growth in BPC and 15 per cent/15 per cent growth in fashion.

 

ICICI Securities | Add | Target: ₹230 

In Q1FY26, Fashion’s gross merchandise value (GMV) grew 24.5 per cent Y-o-Y driven by 74 per cent Y-o-Y growth in the men’s category, which is a positive development, indicating sustainability of growth, as they are still under-indexed in men’s fashion (16 percentage of GMV).

 

Further, analysts think Nykaa’s rapid delivery model, ‘Nykaa now’, could scale up to 10–15 per cent of Beauty’s GMV by FY26-end and await further clarity on the impact of this scale-up on fulfilment and rental expenses.

 

Nuvama Institutional Equities | Buy | Target: ₹235

Nykaa sustained a strong momentum in its BPC segment, while fashion registered a pickup in growth this quarter. The brokerage models in 20 per cent GMV growth, with margin expansion driven by narrowing losses in Fashion and eB2B. It cut earnings for FY26E/27E by 10 per cent/12 per cent, primarily due to higher tax assumptions.

 

JM Financial  Institutional Securities | Buy | Target raised to ₹260 from ₹250

With core BPC continuing to improve profitability along with a decline in losses in Fashion and eB2B, Jm Financial expects the company to see accelerated consolidated Ebitda margin improvement.  Kotak Institutional Equities | Reduce | Target raised to ₹195 from ₹185  

Nykaa’s performance has been resilient in the face of competition from quick commerce and generally weak discretionary spending, the brokerage noted. It increased the FY2026 tax rate, though maintained other operational forecasts. The stock looks expensive to analysts and await a better entry point.