Nykaa shares hit 52-week high, climbing 58% so far in 2025; here is what you need to know

FSN E-Commerce Ventures Limited, along with its subsidiaries, has seen an accelerated growth momentum in Q2 FY2026, with consolidated gross merchandise volume (GMV) growth expected to be close to the thirties, compared to the mid-twenties in the last few quarters. This superior performance is driven by renewed growth in the fashion vertical and healthy performance of the beauty vertical.

Nykaa’s Beauty vertical is expected to deliver net sales value (NSV) and net revenue growth in the mid-twenties, marking 10+ consecutive quarters of sustained growth momentum.

House of Nykaa brands continue to witness rapid growth driven by robust performance of acquired brands like Dot & Key, as well as homegrown brands like Kay Beauty and Nykaa Cosmetics.

The company further said that Nykaa’s fashion vertical is expected to deliver NSV growth in the higher mid-twenties, on the back of strong traction in core platform business, which was led by expanding brand assortment and robust customer acquisition. The vertical’s net revenue growth is expected to improve to the low twenties from the low to mid teens in the last few quarters.

Net revenue growth for the vertical is lower than NSV growth due to a lag in advertising and marketing income.

“As a result, Nykaa has delivered yet another quarter of healthy performance, with Consolidated Net Revenue growth expected to be in the mid-twenties in Q2 FY2026, aided by an early start to the festive season,” the e-commerce firm said in a statement.

Nykaa further stated that the recent goods and services tax (GST) reforms announced by the government are a welcome step toward stimulating demand. “These reforms are expected to increase disposable income and drive long-term growth across several consumer and discretionary categories,” it added.

Nykaa’s share price

Over the past three months, FSN E-Commerce Ventures’ shares have gained 29%, including a more than 7% rise in the last month.

The stock has climbed 12% in the last five trading sessions and surged 58% since the start of the year. In the past 12 months, the stock price has gained 34%.

The company’s market capitalisation stands at ₹74,114.98 crore.

Here’s what analysts said

Elara Capital, in its report dated September 12, had said that GST 2.0, with an estimated net revenue reduction of INR 480bn for the government, is set to act as a fiscal stimulus. Fashion, food services (QSR and online food delivery), lifestyle, and electronics may be the biggest beneficiaries.

QSR chains may benefit the most, with a consumption boost and positive impact of lower input costs; online BPC platform NYKAA could benefit due to lower GST rates for key personal care items (~20%-25% of online BPC revenue) in addition to the overall consumption boost.

"NYKAA’s online BPC may report 100 bps higher growth on consumption boost with a potential EBITDA upgrade of 2-4%," analysts at Elara Capital had written in a note.

"Nykaa’s BPC vertical may benefit from lower GST on personal care products such as hair oil, shampoo, etc., which may support premiumisation and accelerate revenue growth rate by 170 bps and EBITDA by 400 bps given the 25% share of personal care in BPC GMV, per our assessment," it has further stated.

However, analysts at UBS believe the stock is now fairly valued, given the strong rally and modest tweaks in estimates.  With the stock currently trading at an FY26 EV/EBITDA of 61 times and 41 times for FY28, UBS believes valuations are now fair and fully priced in. 

While Nykaa’s beauty and personal care segment continues to show strong growth, UBS noted that performance fell slightly short of expectations, primarily due to higher marketing expenditures.

Nykaa targets fashion break-even by FY26

In June 2025, FSN E-Commerce Ventures said it has set a break-even target of FY26 for its cash-burning fashion arm on account of marketing efficiencies, overhead leverage, and own-brand growth.

Break-even in business means reaching a point where a firm's total revenue equals its total costs — meaning it is not making a profit, but it is not losing money either.

"Nykaa is also foraying into the quick-commerce arena with 'Nykaa Now', which offers delivery times ranging from 30 to 120 minutes across seven major cities. The service is backed by a network of beauty warehouses, physical retail stores and rapid stores across the country," the company said.

"The fashion vertical, which generated about ₹3,800 crore in GMV (Gross Merchandise Value), is currently a drag on consolidated profitability, posting a negative EBITDA margin of -8.3% for FY25," it had said.

The Mumbai-headquartered firm had said that it anticipates achieving EBITDA break-even by FY26 and reaching a "steady state" margin of approximately 10% by FY28.

This turnaround will be driven through a mix of strong repeat buying, its own brands' growth, and significant leverage in overheads with scale, Nykaa had said.

Nykaa's profit more than doubled to ₹66.08 crore in FY25, from ₹32.26 crore in the previous fiscal year.

Meanwhile, in its Q1 FY26 earnings, Nykaa said its Fashion segment posted a robust performance during the period, signalling a strong rebound in growth alongside notable profitability improvements. GMV grew 25% YoY to ₹964 crore.