Brokerages poured in their reviews and ratings on Nykaa parent FSN E-Commerce Ventures Ltd after the beauty e-tailer shared an investor presentation.
The company expects its fashion segment to achieve breakeven by FY26, with EBITDA margins rising to mid-single digits by FY28, and eventually reaching 10 percent in the steady state. Nykaa is targeting a 3–4x expansion in overall scale over the next five years.
A number of high-profile brand launches are lined up for the second half of FY26. Nykaa’s own-label portfolio has already clocked Rs 2,100 crore in GMV (Gross Merchandise Value) across 12 brands. The company projects this organic portfolio to grow at a 30 percent CAGR, reaching Rs 6,000 crore in GMV by FY30. Key focus areas include fragrances, bath and body, and clean beauty categories.
Nykaa has rolled out its quick commerce beauty platform, Nykaa Now, which currently operates in seven cities. The service promises order deliveries within 30 to 120 minutes, aiming to tap into the growing demand for faster fulfilment.
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Should you buy, sell, or hold Nykaa shares?
CLSA has an 'outperform' rating on Nykaa with a target of Rs 229. It expects a 23 percent CAGR in the BPC segment through FY30. While Nykaa aims for 3–4x growth in fashion NSV over five years, CLSA estimates under 2x. Fashion EBITDA margins are projected to reach 10 percent in the steady state. CLSA sees scope for earnings upgrades if execution stays on track.
Japan-based brokerage Nomura maintained its 'neutral' call with a Rs 216 target. Nykaa targets a 22–25 percent revenue CAGR, with fashion breakeven by FY26. Revenue growth is forecast at 26 percent in FY26 and 25 percent in FY27.
Management focus remains on sustainable growth by adding quality customers to the funnel rather than discounting products. "We continue to reckon an improvement in profitability on the back of
lower losses in the fashion and eB2B segments, said Nuvama Institutional Equities. The brokerage maintained its Rs 235 target, with a 'buy' rating.
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