Nykaa shares dip 3% despite multifold jump in Q1 profit; analysts weigh in

Shares of FSN E-Commerce Ventures, which operates the beauty and fashion retailer Nykaa, declined 3% to Rs 334 on the BSE on Wednesday even as the company reported a more than three-fold rise in consolidated net profit to Rs 80 crore for the first quarter of FY27, up from Rs 23 crore in the same period last year.

Nykaa’s revenue from operations rose over 29% YoY to Rs 2,782 crore, while EBITDA surged 68% YoY to Rs 236 crore during the quarter under review. Its EBITDA margin improved to 8.5% in the first quarter of the ongoing financial year, up from 6.5% reported in the corresponding period of FY26.

Nykaa Founder and CEO Falguni Nayar said Q1 marked continued acceleration in the company’s growth momentum and EBITDA margins, both reaching their highest levels in the last 12 quarters. “Our AI-led initiatives are beginning to create meaningful consumer experiences, with Virtual Closet already driving 2x higher conversion and AskNykaa, our conversational search engine, emerging as a trusted beauty advisor on the platform. We remain focused on building with discipline, innovation, and long-term value creation,” she added.


Also read |Nykaa reports Rs 80 crore net profit in Q1, revenue up 29%

Nomura on Nykaa share price

Nomura said Nykaa’s growth is accelerating and margin levers are playing out. It maintained its ‘Buy’ rating on the stock, and increased its target price to Rs 411 apiece from Rs 343 apiece. The latest target price implies nearly 20% upside potential.

The international brokerage expects Nykaa to sustain its strong growth momentum with margin expansion, driven by premiumization, increasing brand partnerships and scale-up of own brands, and focus on physical expansion in tier 2 and 3 cities.

Overall, Nomura raised its FY28 revenue estimates for Nykaa, while EBITDA margin expectations remained largely unchanged.

Nuvama on Nykaa share price

Nuvama Institutional Equities said Nykaa’s strong show continues, as the brokerage maintained its ‘Buy’ call and increased its target price to Rs 414 apiece from Rs 351 apiece. The latest target price implies 21% upside potential.

The brokerage raised Nykaa’s revenue and EBITDA estimates for FY27 and FY28. “BPC business was steady, while the Fashion business delivered a standout quarter owing to strong customer growth. Profitability improved further in BPC while fashion business managed to breakeven,” it noted.

Motilal Oswal Financial Services

Motilal Oswal on Nykaa share price also raised its target price to Rs 370 apiece, while maintaining its ‘Neutral’ call. The domestic brokerage said that the premiumization in beauty is playing out more intensely, visible in improving AOVs.

Nykaa is on track to deliver around 5x consolidated EBITDA by FY30, led by fashion segment’s EBITDA margin, which is likely to improve to 10.1% from 0% currently, as well as BPC margin, which is on an improving trajectory, Motilal Oswal said, adding that improving ROCE and disciplined working capital continue to reflect financial discipline.

“We continue to view Nykaa's deep moat in Beauty and Personal Care as difficult to displace, supported by 10,000+ brands, 324 stores across 105 cities, strong owned brands, and deep brand partnerships. At the same time, we view the company as building an assortment-intelligence-led Fashion vertical, with marquee partnerships such as Nike, H&M Move, and Birkenstock strengthening its long-term positioning,” it added.

Nykaa share price

Nykaa announced its results in the post-market hours of Tuesday. Earlier during the day, the stock closed nearly 1% lower at Rs 342.50 apiece on NSE. The shares of the e-commerce platform have gained 5% in a week and 10% in a month, and are overall up 29% in 2026 so far.

In the longer term, Nykaa shares have delivered 62% returns over a year and 132% over three years. The company currently has a market capitalisation of more than Rs 98,088 crore.

Also read | Nykaa to acquire 51% stake in skincare brand Aminu for Rs 32 crore

(With inputs from agencies)

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