Shares of FSN E-Commerce Ventures, the parent company of beauty and fashion platform Nykaa, have seen a steady upward trend in recent months. With a nearly 70 percent surge over the last two years and a 19 percent gain in the past 12 months, the stock is now hovering just 9 percent below its 52-week high of ₹229.90, last seen in August 2024. 

Recent product launches, improving financials, and optimistic guidance have piqued investor interest—leaving one big question: can the rally sustain?

Nykaa’s stock closed at ₹209.85 recently, marking a 2.3 percent gain for June—its fourth consecutive monthly advance. It rose 4.5 percent in May, 8.5 percent in April, and surged 12.8 percent in March. This consistent climb follows a 6 percent dip in February, offset by a modest 3 percent gain in January. The stock’s recent strength comes as it rebounds from a 52-week low of ₹154.90 touched in March 2025.

Nykaa Now Launch, Long-Term Ambitions

The momentum also coincides with the launch of Nykaa Now, the company’s new quick commerce platform for beauty products. Already operational in seven cities, Nykaa Now promises order deliveries within 30 to 120 minutes, positioning Nykaa competitively in the fast-delivery beauty space.

Looking ahead, Nykaa has outlined a bold expansion plan, targeting three to four times growth over the next five years. The management expects the fashion business to achieve EBITDA breakeven by FY26, with margins expanding to mid-single digits by FY28. For its core Beauty and Personal Care (BPC) vertical, Nykaa is aiming for steady-state EBITDA margins of around 10 percent.

The second half of FY26 will also see several marquee product launches, aimed at bolstering growth further across both BPC and fashion segments.

Brokerage Views: Mixed on Fashion, Confident on BPC

Several brokerages have weighed in on Nykaa’s latest roadmap, offering cautious optimism.

Nomura sees Nykaa’s BPC segment well-positioned to deliver 27 percent and 25 percent revenue growth in FY26 and FY27, respectively, citing its strong premium beauty presence. However, it remains conservative on the fashion business, labeling management’s expectations as “ambitious,” especially given the “high level of competition.” The brokerage forecasts fashion margins to stay negative at -7 percent by FY27. Nomura has maintained a ‘Neutral’ rating with a DCF-based target of ₹216, calling the current valuation of around 5x FY26 EV/sales fair.

JM Financial sounded more upbeat, particularly highlighting faster-than-expected breakeven guidance in fashion. It noted Nykaa’s aggressive growth in BPC and fashion, along with strong traction in its eB2B Superstore vertical. The brokerage expects stable contribution margins in BPC and EBITDA margin expansion driven by operating leverage. It retained a ‘Buy’ rating with a March 2026 target of ₹250.

Nuvama Institutional Equities echoed similar sentiments, focusing on the company’s long-term potential and profitability roadmap. The brokerage said Nykaa’s BPC segment is expected to grow at a mid-20 percent CAGR between FY25 and FY30, while the fashion division should reach EBITDA breakeven in FY26. Nuvama also noted the potential of Nykaa’s private label vertical “House of Nykaa,” which targets a GMV of ₹6,000 crore by FY30. It expects further improvements in profitability from lower losses in fashion and B2B operations and retained a ‘Buy’ rating with a DCF-based target price of ₹235.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.