Nykaa’s parent, FSN E-Commerce Ventures, delivered a strong Q1 FY26 performance, reporting a 79% year-on-year rise in net profit to ₹24.47 crore. Shares jumped over 5% intraday after the announcement, with beauty sales driving the surge. Total income climbed to ₹2,164.27 crore from ₹1,753.44 crore a year ago.
Brokerage firm Nuvama maintained its ‘Buy’ rating with a target price of ₹235, though it trimmed earnings estimates for FY26 and FY27 by 10% and 12% respectively, citing higher tax assumptions. The results reinforced Nykaa’s position in the beauty and personal care (BPC) market while signalling momentum in its fashion segment.
Strong Q1 Performance
Nykaa shares opened with a 5.06% gap-up at ₹215 and touched an intraday high of ₹216. By 11:15 a.m., they were up 4.50% at ₹214. Trading volumes were robust, with 1.53 crore shares changing hands.
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This marked the third consecutive session of gains for the stock. It is currently trading above its 5-day, 50-day, 100-day, and 200-day moving averages, though it remains below its 20-day average.
Beauty Drives Growth
Nykaa’s business was still dominated by the beauty vertical, which increased revenue by 24% year-on-year to ₹1,975 crore. With growing market share and consumer involvement, this area continues to be the company’s major engine.
Despite being smaller, the fashion business increased its pace in Q1, which helped to lower its losses and boost overall margins.
Analyst View — Buy Rating but Lower Forecasts
Following the results, Nuvama reiterated its ‘Buy’ stance with a target price of ₹235, emphasising Nykaa’s focus on increasing its market share. With the help of better margins from reducing fashion and eB2B losses, the brokerage anticipates a 20% increase in Gross Merchandise Value (GMV).
However, it cut FY26 and FY27 earnings projections by 10% and 12% due to higher expected taxes.
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Retail Investor Interest Builds
Retail investors are paying more attention to Nykaa as a result of its recent growth. High trade volumes and the stock’s three-day winning run suggest that market participation is increasing.
Despite the reduced earnings, the beauty segment’s robust profit leap and steady growth indicate a possibility for medium-term gains for many small investors.
Market Position and Outlook
With a market capitalisation of ₹62,234.48 crore, Nykaa remains a significant player in the BSE 200 index. Its ability to sustain growth in beauty while turning around fashion could define its next phase.
Investors now face a classic trade-off: strong business momentum versus slightly weaker long-term earnings forecasts.
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