05 Aug , 2026 By : Debdeep Gupta
Shares of FSN E-Commerce Ventures Ltd (Nykaa) declined in early trade on Wednesday, even after the company reported a sharp year-on-year improvement in its fiscal first quarter earnings, and major brokerages reiterated their positive stance on the stock.
Nykaa shares were trading at Rs 334.3 in early deals on Wednesday, down 2.4 percent. The stock had ended 0.7 percent lower on Tuesday, ahead of its quarterly results. Despite the decline, the stock remains up 28.9 percent so far this year, outperforming the Nifty 50, which has fallen 5.9 percent over the same period. The company commands a market capitalisation of Rs 46,668 crore.
Nomura maintained its Buy rating on Nykaa stock with a target price of Rs 411 per share, implying around 20 percent upside from Tuesday's closing price. The brokerage said EBITDA came in ahead of consensus expectations, with premiumisation trends and AI-led efficiencies supporting growth. It expects the company to sustain growth through premium brands, expansion of its own labels and a deeper presence in Tier-2 and Tier-3 cities.
Jefferies also retained a Buy rating with a target price of Rs 400 per share. It highlighted a beat across revenue, margins and profit, supported by strong growth in both the beauty and fashion businesses. The brokerage said Nykaa's House of Brands business is scaling well, while its quick commerce initiatives are expanding the company's reach. Although it described valuations as rich, it said they are justified by the company's growth trajectory.
HSBC reiterated its Buy call and raised its fiscal 2027 EBITDA estimates by 3 percent, while retaining a target price of Rs 380 per share. The brokerage said that beauty GMV grew 28 percent and fashion GMV rose 53 percent during the quarter, with EBITDA margin expanding by around 195 basis points year-on-year.
CLSA maintained its Outperform rating on Nykaa with a target price of Rs 376 per share. It said revenue grew 29 percent year-on-year, while EBITDA margin stood at 8.5 percent, with EBITDA coming in 6 percent above its estimates. The brokerage added that fashion NSV increased 53 percent and beauty NSV rose 29 percent, while own brands delivered 40 percent growth, supporting margin expansion.
Nykaa reported a strong set of June quarter numbers on Tuesday. Net profit more than tripled to Rs 79.7 crore from Rs 24.4 crore a year earlier. Revenue rose 29.1 percent year-on-year to Rs 2,782 crore, while EBITDA increased 67.8 percent to Rs 236 crore. EBITDA margin expanded to 8.5 percent from 6.5 percent in the corresponding quarter last year.
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