Nykaa shares pare gains after hitting 52-week high; here’s what Jefferies, Nomura, other analysts said on Q1 FY27 earnings

FSN E-Commerce Ventures shares tumbled 6% from their 52-week high level to an intraday low of ₹327.7 apiece. At the time of writing the piece, the stock was trading at ₹336.3 apiece on the National Stock Exchange, declining 1.81%.

Nykaa reported a 247% year-on-year surge in consolidated net profit to ₹80 crore for the quarter ended June 30, 2026 (Q1 FY27). In the corresponding quarter last year, the beauty and personal care retailer had posted a net profit of ₹23 crore.

The company’s revenue from operations increased 29% year-on-year (YoY) to ₹2,782 crore as compared to ₹2,155 crore in Q1 FY26.

On the operational level, Nykaa’s earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at ₹236 crore, marking a jump of 69% from ₹140 crore in the corresponding quarter of the previous fiscal year. The company’s EBITDA margin also expanded to 8.4% in contrast to 6.5% YoY.

Nykaa’s beauty vertical GMV for Q1 FY27 stood at ₹4,105 crore. This includes performance across businesses of e-commerce, retail stores, eB2B distribution and the House of Nykaa Beauty portfolio. NSV growth came in at 29% YoY this quarter, accelerating from the mid-20s growth recorded over the past few quarters.

As India's largest beauty specialty retail network, the company expanded its beauty retail footprint to 324 stores across 105 cities, with total retail space increasing 29% YoY to ~3.3 lakh sq. ft.

Along with the earnings, Nykaa also said it acquired 51% stake in Aminu Wellness Private Limited, a premium dermocosmetic skincare brand, for a total consideration of ₹32 crore.

“This quarter marked continued acceleration in our growth momentum and EBITDA margins, both reaching their highest levels in the last 12 quarters. Our AI-led initiatives are beginning to create meaningful consumer experiences, with Virtual Closet already driving 2x higher conversion and AskNykaa, our conversational search engine, emerging as a trusted beauty advisor on the platform,” said Falguni Nayar, Executive Chairperson, Founder and CEO of Nykaa.

Here’s what analysts said

Analysts from HSBC said FSN E-Commerce’s GMV performance remained robust, with the beauty and personal care (BPC) segment growing 28% and the fashion segment rising 53%. The analysts also noted that the company’s House of Brands continues to scale up.

They further highlighted that the EBITDA margin expanded by around 195 basis points year-on-year, marking the third consecutive quarter of over 150 basis points expansion, indicating that operating leverage is beginning to reflect.

Nomura analysts said growth is accelerating at FSN E-Commerce, with margin levers starting to play out. The analysts noted that EBITDA for Q1 FY27 came in ahead of consensus estimates, supported by premiumisation trends and AI-driven efficiencies.

The analysts expect Nykaa to sustain its strong growth momentum, with further margin expansion likely to be driven by premiumisation, an increase in brand partnerships, and the scaling up of its own brands.

Jefferies analysts in a note on Wednesday said Nykaa reported a strong beat across key metrics, with robust revenue growth, margins rising to a multi-quarter high, and a sharp increase in profits. The analysts also added that valuations remain elevated but are supported by the firm’s strong growth and margin expansion.

According to NSE data, as of August 5, 2026, Nykaa has a total market capitalisation of ₹96,470.06 crore.