Nykaa shares surge after sturdy Q2 efficiency, brokerages flip bullish—Test newest targets

Nykaa Share Worth: Shares of FSN E-Commerce Ventures, also referred to as Nykaa, gained as a lot as 7 per cent on Monday’s buying and selling session after the corporate reported its monetary outcomes for the quarter and half-year ended September 2025. As of 1:30 pm, Nykaa’s inventory was buying and selling at Rs 262.75, indicating an upside of 6.83 per cent from the earlier shut.

In its monetary outcomes (consolidated) for Q2FY26, Nykaa reported a 25.1 per cent enhance in its income from operations to Rs 2,345.98 crore year-on-year (YoY) from Rs 1.874.74 crore.

The corporate’s web revenue after tax stood at Rs 32.98 crore from Rs 13.44 crore for a similar quarter within the earlier 12 months.

Brokerages’ views on Nykaa

Morgan Stanley has maintained its ‘chubby’ score on Nykaa (FSN E-Commerce Ventures) and raised its goal worth to Rs 271 from Rs 253, reflecting optimism concerning the firm’s sturdy operational efficiency and bettering profitability tendencies.

The brokerage famous that Nykaa’s magnificence phase continued its stable momentum, posting 28 per cent GMV progress (versus 26 per cent in Q1) and 25 per cent income progress (up from 24 per cent in Q1), with EBITDA margin increasing to 9 per cent, a 40 bps YoY enchancment.

In the meantime, the style phase’s GMV progress improved considerably to 37 per cent (from 25 per cent in Q1), and income progress improved to 21 per cent (from 15 per cent in Q1).

The style EBITDA loss narrowed sharply to -3.5 per cent, in contrast with -6.2 per cent in Q1 and -9 per cent in Q2FY25, led by working leverage on advertising and marketing spends.

Administration stays assured about sustaining this progress momentum in each magnificence and trend segments. Morgan Stanley additionally expects magnificence phase efficiency to stay sturdy in Q3, supported by festive demand, the Nykaaland occasion, and ongoing gross sales campaigns.

JP Morgan has maintained its ‘underweight’ score on Nykaa whereas elevating its goal worth to Rs 217 from Rs 186.

Nomura has maintained a ‘impartial’ goal score on Nykaa and raised its goal worth to Rs 262 from Rs 223.

Jefferies has maintained a ‘purchase’ score on Nykaa, whereas upgrading its goal worth to Rs 285 from Rs 250.

CLSA has maintained its ‘accumulate’ score on Nykaa (FSN E-Commerce Ventures) whereas elevating its goal worth to Rs 298 from Rs 260.

The brokerage highlighted that Nykaa delivered a robust 25 per cent YoY income progress in Q2FY26, together with a 125 bps enchancment in EBITDA margin, which got here in 4 per cent above CLSA’s estimates.

The sweetness phase remained sturdy, reporting a 27 per cent YoY enhance in web gross sales worth (NSV) and a 38 bps enchancment in EBITDA margin.

In the meantime, the style enterprise additionally confirmed vital progress, recording 27 per cent YoY NSV progress with margin growth of 550 bps YoY and 270 bps quarter-on-quarter QoQ, pushed by higher working leverage and disciplined spending.

Moreover, CLSA additionally raised its FY26–FY28 earnings estimates by 2 to three per cent.

Macquarie has maintained its ‘underperform’ score on Nykaa (FSN E-Commerce Ventures) with a goal worth of Rs 150.

The brokerage famous that each the sweetness and trend segments delivered outcomes broadly consistent with expectations. Nonetheless, the brokerage emphasised that sustained margin growth within the magnificence enterprise stays essential for Nykaa’s future efficiency.

Macquarie identified that magnificence promoting revenue recorded yet one more quarter of sub-15 per cent progress, indicating some moderation on this high-margin income stream.

Moreover, the brokerage mentioned that the style phase continues to face margin stress, largely resulting from larger supply and logistics prices.