Nykaa Shares Jump 5% After Q2 Profit Rises 243% YoY; Brokerages See Sustained Growth Momentum

Nykaa Share Price: Shares of FSN E-Commerce Ventures, the parent company of beauty and fashion retailer Nykaa, jumped 5.5% to an intraday high of Rs 259.60 on the BSE on Monday, November 10, after the company reported a robust 243% year-on-year (YoY) rise in consolidated net profit for the second quarter of FY26.

Revenue from operations climbed 25% YoY to Rs 2,346 crore, while EBITDA rose 53% to Rs 158.5 crore, marking the company’s highest EBITDA since listing. The EBITDA margin expanded to 6.8%, up 125 basis points from 5.5% in the year-ago quarter, while the PAT margin improved to 1.4% from 0.7%.

Gross merchandise value (GMV) grew 30% YoY to Rs 4,744 crore, driven by a 28% increase in the beauty segment and a sharp recovery in fashion. Nykaa

also expanded its retail footprint, adding 19 new stores across eight cities during the quarter, taking total retail space to over 2.7 lakh sq ft, up 37% YoY.

Marketing and selling expenses rose 29% to Rs 368 crore, compared with ₹286 crore in Q2FY25.

Brokerage Views

Morgan Stanley: Maintained an Overweight rating with a target price of ₹271, citing strong momentum in the beauty segment, which reported 28% GMV growth and a 9% EBITDA margin. The brokerage noted that fashion GMV rose 37%, with losses narrowing to 3.5% due to improved operating leverage. It expects continued strength in Q3, supported by festive demand and Nykaa’s flagship ‘Nykaaland’ event.

CLSA: Upgraded its target price to Rs 298 and retained an Outperform rating. CLSA highlighted the company’s 25% revenue growth and 125-basis-point improvement in margins, with EBITDA 4% above estimates. It noted stronger profitability across verticals—beauty NSV up 27% and fashion margins expanding 550 basis points YoY—and raised its FY26–FY28 earnings estimates by 2–3%.

Nuvama Institutional Equities: Reiterated a Buy call, lifting its target price to Rs 285 from Rs 235, citing sustained growth in the fashion and BPC (beauty and personal care) segments. It said Q2FY26 revenue of Rs 2,350 crore (up 25.1% YoY) was in line with estimates, with broad-based growth and improving profitability. Despite PAT (Rs 34 crore) being slightly below consensus (Rs 38.2 crore), Nuvama expects 25%+ GMV growth and further margin expansion ahead.

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