Nykaa shares surge nearly 19% intraday to hit a 52-week high; here’s why

Shares of FSN E-Commerce Ventures Limited, which owns fashion retail brand Nykaa, spurted over 18% to hit a year high on Wednesday amid an uptick in new-age stocks in the broader market.

Nykaa shares zoomed 18.5% to hit a 52-week high of ₹228.30 per share on NSE. More than 2.7 crore shares of the company changed hands on NSE. The traded value was ₹560 crore.

Nykaa shares also hit a 52-week high of ₹228.5 per share on the BSE. More than 12.17 lakh shares changed hands on the bourse, nearly four times the two-week average trading volume.

Shares of the fashion retailer have risen nearly 20% this year so far while in the past one year, the stock has given returns of around 52%.

As per experts, the recent rally in the company’s stock comes amid upbeat June quarter results and positive management guidance. Other key triggers include the company's expansion in the offline market and dominance in the beauty and personal care market.

Meanwhile, other new-age stocks, Ola Electric and Paytm, advanced up to 1%, while broader market indices SENSEX and NIFTY were trading flat.

Nykaa posts a 23% rise in revenue for the June quarter

Nykaa last reported a 23% year-on-year jump in revenue from operations to ₹1746.1 crore in the June quarter of FY25. Its gross profit jumped 22% year over year to ₹756 crore in the quarter, while EBITDA rose 31% year over year to ₹96.1 crore in Q1 FY25.

EBITDA margins stood at 5.5% in the June quarter compared to 5.2% in Q1 FY24. The June quarter of FY25 saw a net profit more than double to ₹13.6 crore compared to the year-ago period.

The company stated that the beauty segment's GMV showed strong growth of 28% YoY in the first quarter of FY25, which was in line with the long-term growth trajectory of the beauty industry.

It said the performance was a result of accelerated customer acquisition, up 27% YoY, driving healthy order volume growth.

The company’s beauty segment comprises the online beauty platform Nykaa.com, physical stores, and beauty-owned brands like Nykaa Cosmetics, Kay Beauty, and Dot & Key, among others. In the quarter, it also included the eB2B distribution business ‘Superstore by Nykaa’ and the grooming business of NykaaMan.com in the segment.