FSN E-Commerce Ventures (Nykaa) shares experienced significant volatility on Friday morning, erasing early gains to trade at ₹272.85, down 0.60% from the previous close of ₹274.50 as of 10:52 am. According to The Hindu BusinessLine, the stock opened sharply higher at ₹283.50 and hit a fresh 52-week high of ₹285.60 before retreating, with sell orders dominating at nearly 70% of total traded quantity. The heavy trading activity generated 172.28 lakh shares traded and a traded value of ₹477.63 crore by mid-morning, indicating significant institutional participation. The stock has gained 35.55% over the past year, comfortably outpacing the Nifty Midcap 50's 10.80% return over the same period.
FSN E-Commerce Ventures delivered exceptional Q4FY26 results with consolidated net profit jumping 286% YoY to ₹78 crore compared to ₹20 crore in the same period last year. According to reports from Business Standard, revenue from operations rose 28% YoY to ₹2,648 crore, up from ₹2,062 crore in Q4FY25. On a sequential basis, profit after tax increased 24% from ₹63 crore in the December quarter, though revenue declined 7% quarter-on-quarter from ₹2,873 crore reported in Q3FY26. The strong performance drove Nykaa shares to hit a 52-week high at ₹285.65 per share, gaining 4% on BSE before the post-results volatility. As per Livemint, the stock has gained over 6% in one month and 4% on a year-to-date basis, with 37% gains in one year and 54% over the past two years.
The company achieved several operational milestones during Q4FY26. According to The Economic Times, Nykaa posted a 28% YoY rise in gross merchandise value to ₹5,241 crore, extending its streak of mid-20s GMV growth to the 14th straight quarter. EBITDA for the quarter stood at ₹223 crore, up 67% from ₹134 crore a year ago, with margin jumping to the highest ever at 8.4% from 6.5% YoY. The company reported that quarterly revenue and gross margin were the highest seen in the last 12 quarters. As per Livemint, the consolidated GMV grew 28% to ₹5,241 crore during the quarter, demonstrating sustained operational excellence across the platform.
For the full fiscal year FY26, Nykaa's parent company delivered exceptional growth metrics. According to latest reports, net profit nearly tripled to ₹199 crore for the full year, compared with ₹66 crore in the previous year. Revenue from operations rose 26% to ₹10,022 crore in FY26 versus ₹7,950 crore a year earlier. The company's gross merchandising value (GMV) for FY26 stood at ₹19,963 crore, rising 28% YoY, while EBITDA recorded 59% YoY growth at ₹752 crore and PAT surged 183% to ₹204 crore. For the first time, Nykaa crossed the USD 1 billion revenue mark for FY26, with the company achieving significant scale in its operations.
Market analyst opinions remain sharply divided following the record results, with valuation concerns dominating discussions. According to The Hindu BusinessLine, Jefferies raised its target price to ₹350 with a Buy, calling the fashion vertical's EBITDA breakeven a sign that management has cracked the code on profitability. CLSA kept an Outperform rating and lifted its target to ₹338 from ₹328, citing faster-than-expected sales growth, though it trimmed FY27–28 earnings estimates marginally. JM Financial reiterated Buy at ₹335, projecting a roughly 50% EBITDA CAGR through FY29. However, HSBC held its Hold rating with a ₹273 target, noting that while execution has been strong, the stock trades at a demanding 67x FY28 EV/EBITDA. Motilal Oswal reiterated Neutral with a ₹300 target, arguing that much of the growth is now priced in after the stock's strong run. Citi maintained its Sell rating with a ₹225 target, the most bearish call on the street, with the stock's current price of ₹272.85 sitting below most bulls' targets but above HSBC and Citi's projections.
