FSN E-Commerce Ventures Ltd, operator of Nykaa, saw shares rise over 5.5% on Monday, October 5, following the company's provisional Q2 FY2027 revenue update released on October 4. As per CNBC TV18, the stock is trading at ₹342.6, close to its 52-week high of ₹349.5, and is up nearly 30% so far this year. The positive market response reflects strong investor confidence in the company's projected growth trajectory for the September quarter. The stock has delivered a 34% return over the last 12 months and is currently around 48% above its 52-week low of ₹231.24 seen on October 1, 2025. The current market cap of the company is around ₹96,841.8 crore, while it is trading at a price-to-earnings multiple of 359.05 times. According to LiveMint, the Indian stock market rebounded on Monday with the Nifty 50 rising 0.60% to 22,555.75 amid easing crude oil prices and reduced fears of US monetary tightening.
Goldman Sachs maintained a 'Neutral' rating on Nykaa but raised its target price to ₹290 from ₹280, implying an upside of 11% from the current market price of ₹340.90. According to CNBC TV18, the brokerage noted that Nykaa's expected Q2FY27 NSV growth in the early 30s is broadly in line with its 32% forecast, calling the performance "particularly impressive," given the shift in festive timing in FY27. JM Financial maintained its 'Buy' rating on Nykaa and raised its target price to ₹405 from ₹395, implying an upside of 24.6% from the current market price of ₹340.90. The brokerage noted that "excellent trends in Beauty and Personal Care (BPC) and Fashion" continue, with the strong quarter supported by robust customer acquisition as well as repeat orders. BofA maintained a 'Neutral' rating on Nykaa with a target price of ₹370, while Nomura retained its 'Buy' rating with a target price of ₹411. Goldman Sachs said investors had been somewhat concerned about a potential growth deceleration in the September quarter due to the shift in festive timing, but noted that Nykaa's results were ahead of investor expectations, although broadly in line with its own estimates.
FSN E-Commerce Ventures Ltd announced on Sunday (October 4) that consolidated net revenue growth for Q2 FY27 is expected to be in the late twenties year-on-year. According to CNBC TV18, consolidated gross merchandise value (GMV) growth is projected to be in the high-20s to close to 30%, with consolidated NSV growth also expected in the early thirties. Net sales value (NSV) growth is expected to be in the early thirties, with growth across both Beauty and Fashion verticals. This performance reflects strengthening across both core verticals, supported by increasing scale in Fashion and steady expansion in Beauty. The company noted that its Beauty business is expected to post NSV and net revenue growth in the late thirties, marking a slight upward revision from earlier projections. As per LiveMint, the strong expected growth in both metrics, along with continued customer acquisition, store expansion and Fashion momentum, will be key factors to watch when Nykaa reports its detailed Q2 FY27 financial results.
The Beauty vertical's NSV and net revenue growth are expected to be in the late twenties percentage range in Q2 FY27, compared with 29% YoY growth in Q1FY27. As reported by CNBC TV18, the omnichannel business continued to benefit from strong omnichannel performance, driven by new customer additions and repeat engagement. The company added 14 net new stores during the quarter, taking its total store count to 338 as of September 30, 2026. Like-for-like store sales growth was in the early twenties, marking the highest performance in the last six quarters. The House of Nykaa portfolio also continued to grow faster than the overall Beauty business, with the omnichannel strength evident through strong platform growth. According to The Hindu BusinessLine, the beauty business continued to deliver healthy NSV growth of late-20s year-on-year, ahead of JMFe estimates of mid-20s despite a difficult base of festive spends starting early last year. BPC's NSV was at ₹2,371 crore in Q1, a 29% year-on-year growth, while its Ebitda margin expanded from 9% to 10.3%.
The Fashion vertical's NSV and net revenue are expected to be in the late forties and early forties respectively during Q2 FY27, significantly ahead of estimates. According to CNBC TV18, customer acquisition remained strong, while more than 250 brands were added across categories during the quarter, expanding the platform's product assortment. The company's partnership with Nike continued to gain traction, supported by exclusive product drops. The Fashion vertical was the standout performer, with NSV growth expected in the late forties and net revenue growth in the early forties, driven by new customer acquisition and the addition of over 250 brands across categories, with continued traction in the Nike partnership. As per The Hindu BusinessLine, Fashion too continued its solid performance as NSV growth is expected to be in the late-40s year-on-year, significantly ahead of JMFe estimates of mid-30s on the back of new customer additions, assortment expansion and continued traction in Nike partnership. Fashion NSV jumped 53% to ₹451 crore in Q1, with the strong performance potentially tipping the segment further into Ebitda profitability after reporting its second consecutive quarter of near break-even Ebitda in Q1.
Both segments have scaled from strength to strength, leading to improved margins on the back of operating leverage. Consolidated Ebitda rose 66% year-on-year to ₹236 crore in Q1, while the margin expanded from 6.6% to 8.5%. JM Financial expects Q2 Ebitda to rise 61% to ₹256 crore, with the margin holding at 8.5%, while net profit could nearly triple to ₹101 crore. Net profit had grown 243% year-on-year to ₹80 crore in Q1. The trajectory is encouraging, but risks remain. Competition has been intense, particularly in fashion, with aggressive discounting and expansion by rivals potentially causing earnings pressure, especially since Nykaa is among the least capitalized players in the industry. There is another wrinkle with SuperStore, Nykaa's B2B distribution business, scaling rapidly with 17% year-on-year GMV growth to ₹340 crore in Q1, but its lower-margin profile means faster growth can dilute overall margins if it comes at the expense of the core business.
