Nykaa’s stock dropped 2.4% in early trade on Wednesday, after a 0.7% decline on Tuesday. Even so, the share price is up 28.9% this year, beating the Nifty 50 which fell 5.9%. The company’s market capitalisation stands at Rs 46,668 crore.
Nomura kept a Buy rating and set a target price of Rs 411, citing a 20% upside from Tuesday’s close. The brokerage noted that EBITDA exceeded consensus, driven by premiumisation and AI‑led efficiencies. Nomura expects growth through premium brands, its own labels, and deeper reach in Tier‑2 and Tier‑3 cities.
Jefferies also retained a Buy call with a Rs 400 target. It highlighted strong revenue, margin and profit beats, especially in beauty and fashion. The firm praised the scaling of Nykaa’s House of Brands and the expansion of quick‑commerce initiatives, calling valuations rich but justified by growth.
HSBC reiterated its Buy rating, raised its 2027 EBITDA estimates by 3%, and set a Rs 380 target. The bank pointed to 28% growth in beauty GMV and 53% in fashion GMV, with EBITDA margin rising about 195 basis points YoY.
CLSA gave an Outperform rating and a Rs 376 target. It cited 29% year‑on‑year revenue growth, an 8.5% EBITDA margin, and EBITDA 6% above estimates. Fashion NSV grew 53%, beauty NSV 29%, and own‑brand sales jumped 40%.
In its June quarter report, Nykaa posted net profit of Rs 79.7 crore, up more than three times from Rs 24.4 crore a year earlier. Revenue rose 29.1% to Rs 2,782 crore, EBITDA climbed 67.8% to Rs 236 crore, and the EBITDA margin expanded to 8.5% from 6.5% last year.
Despite the early‑day dip, analysts remain optimistic about Nykaa’s trajectory. Strong earnings, robust growth in beauty and fashion, and a clear premium strategy keep the stock on a positive outlook for investors.