Nuvama maintained its Buy rating on Nykaa with a target price of Rs 235, implying a 15% upside from the stock’s last traded price. The brokerage said market share gains remain a strategic priority, with strong momentum in the Beauty & Personal Care segment and improving growth in Fashion.
It expects around 20% GMV growth and margin expansion, supported by narrowing losses in the Fashion and eB2B businesses. However, Nuvama trimmed earnings estimates for FY26 and FY27 by 10% and 12%, respectively, due to higher tax assumptions.
JM Financial reiterated its Buy call and raised its target price to Rs 260 from Rs 250, implying a potential upside of 27.5% from the last traded price.
The brokerage noted that Nykaa delivered robust growth despite a tepid demand environment, with the Beauty & Personal Care vertical posting 26% GMV growth and offline retail rising 33% year-on-year.
JM Financial expects an accelerated improvement in consolidated EBITDA margins, driven by higher profitability in core beauty operations and declining losses in Fashion and eB2B.
Q1 performance supports outlook
Nykaa reported a 79% year-on-year jump in consolidated net profit to Rs 24 crore for the quarter ended June 30, 2025, on a 23% increase in revenue from operations to Rs 2,155 crore.
GMV grew 26% to Rs 4,182 crore, with the Beauty vertical contributing Rs 3,208 crore. EBITDA rose 46% from a year earlier, with margins expanding to 6.5% from 5.5%.
The House of Nykaa Beauty business now accounts for 18% of the company’s overall beauty GMV, said Falguni Nayar, founder and CEO of Nykaa.
“Since our IPO, we have consistently delivered mid-20s growth at a consolidated level. Our cumulative customer base now stands at 45 million, reflecting the growing trust and adoption of our platform,” Nayar added.
Also read | Nykaa Q1 Results: Cons PAT soars 79% YoY to Rs 24 crore, revenue jumps 23%
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