Nykaa Shares Surge 3% After Strong Q3 Earnings – Should You Buy?

Nykaa’s parent company, FSN E-Commerce, reported a strong Q3FY25 with a 51% YoY net profit increase to ₹26.4 crore and a 27% rise in revenue to ₹2,267 crore. The beauty segment drove growth, with GMV up 32% YoY, while Nykaa’s expanding retail presence boosted sales. Analysts remain optimistic, with a ₹200 target price, suggesting potential upside for investors.

CONTENTS:

• Nykaa Shares Gain 3% Following Strong Q3 Earnings Report
• Nykaa Share Price: Is It a Buy After Q3FY25 Results?
• Nykaa Q3 Profit Rises 51% to ₹26.4 Crore

Nykaa Shares Surge 3% After Strong Q3 Earnings – Should You Buy?

Nykaa Shares Gain 3% Following Strong Q3 Earnings Report

Nykaa Shares Surge 3% After Strong Q3 Earnings Nykaa’s parent company, FSN E-Commerce, saw its shares rise by 3% on February 11 as investors responded positively to the company’s strong Q3 earnings. The stock’s upward movement was supported by increased trading volumes.

For the December quarter, Nykaa reported a 51% year-on-year surge in net profit, reaching ₹26.4 crore compared to ₹17.5 crore in the same period last year. The company’s consolidated revenue also saw a 27% annual increase, rising to ₹2,267 crore from ₹1,789 crore. This growth aligned with Nykaa’s earlier projections, which had anticipated revenue expansion in the “higher than mid-twenties” range, as outlined in its January 5 update.

The company’s core beauty segment was a key driver of its performance, experiencing accelerated growth compared to previous quarters. The gross merchandise value (GMV) of this segment was expected to grow in the low thirties, benefiting from strong momentum across multiple sales channels, including e-commerce, retail stores, owned brands, and eB2B distribution.

As of 10:09 AM, Nykaa shares were trading at ₹172.98 on the NSE. The stock’s gains were fueled by heightened trading activity, with approximately 92 lakh shares exchanged—already exceeding the one-month daily average of 76 lakh shares.

Analysts at Morgan Stanley remain optimistic about Nykaa’s future, forecasting a 29% CAGR for the company over FY24-27, primarily driven by the beauty segment’s sustained 29% growth. The brokerage firm also emphasized Nykaa’s strong execution in its beauty business despite broader market challenges, maintaining an ‘overweight’ rating on the stock with a target price of ₹200.

Nykaa Share Price: Is It a Buy After Q3FY25 Results?

Nykaa Shares Surge 3% After Strong Q3 Earnings Shares of Nykaa, the beauty, wellness, and fashion brand operated by FSN E-Commerce Ventures, saw nearly a 3% increase in trading on February 11, following the release of its strong Q3FY25 financial results.

Nykaa Q3 Performance

FSN E-Commerce Ventures reported a 61.43% year-on-year (YoY) increase in net profit, reaching ₹26.12 crore in Q3FY25, compared to ₹16.18 crore in the same period last year. On a quarterly basis, net profit surged by 160.2% from ₹10.04 crore in Q2FY25.

The company’s consolidated revenue grew by 26.74% YoY, reaching ₹2,267.21 crore in Q3FY25, up from ₹1,788.80 crore in Q3FY24. Sequentially, revenue rose by 21% compared to the previous quarter.

Market Reaction & Technical Outlook

Nykaa Shares Surge 3% After Strong Q3 Earnings Nykaa’s stock opened at ₹171.85 on the BSE, up from the previous close of ₹169.60. It later hit an intraday high of ₹174.60, marking a 2.94% increase.

Analysts remain optimistic about Nykaa’s growth prospects. Anshul Jain, Head of Research at Lakshmishree Investment and Securities, highlighted the company’s resilient growth in the beauty and fashion segments, reinforcing its strong position in the evolving e-commerce space.

On the technical front, Mahesh M Ojha, AVP of Research at Hensex Securities, suggested that Nykaa’s stock is well-positioned for an upward trend. He advised investors to consider buying shares in the ₹167-₹169 range, with near-term targets of ₹185 and ₹200. However, he emphasized maintaining a stop loss below ₹158 when entering new positions. Existing shareholders are also advised to hold the stock while keeping a trailing stop loss at ₹158.

Conclusion

Nykaa Shares Surge 3% After Strong Q3 Earnings Given Nykaa’s strong earnings growth, increasing demand in its core business, and a favorable technical outlook, analysts view it as a promising investment. However, investors should exercise caution and maintain risk management strategies such as stop-loss levels while making investment decisions.

Nykaa Q3 Profit Rises 51% to ₹26.4 Crore

New Delhi, February 10 (PTI): FSN E-Commerce, the parent company of Nykaa, reported a 51% year-on-year (YoY) increase in its consolidated net profit for the December quarter (Q3FY25), reaching ₹26.41 crore, as per its latest regulatory filing. In the same period last year, the company had posted a net profit of ₹17.45 crore.

Nykaa’s consolidated revenue from operations also saw significant growth, rising 27% YoY to ₹2,267.21 crore, compared to ₹1,788.8 crore in Q3FY24.

Key Business Growth Highlights: Nykaa Shares Surge 3% After Strong Q3 Earnings

• The company’s gross merchandise value (GMV) expanded by 25% YoY, reaching ₹4,527.9 crore during the quarter.
• The beauty vertical experienced robust growth of 32% YoY, with GMV climbing to ₹3,389.9 crore.
• The surge in beauty segment sales was driven by a growing customer base, with Nykaa’s total beauty customer count reaching 32 million, while its One Nykaa cumulative customer base grew to 40 million.
• Nykaa’s fashion segment also recorded 21% revenue growth, with an 8% YoY increase in GMV.
• The company expanded its physical retail presence, now operating 221 stores across 73 cities, adding 47 new stores in the past year.

Nykaa’s consistent performance, driven by strong demand in its beauty and fashion categories, underscores its continued expansion in both online and offline markets.