Nykaa Q4 net profit surges 4X to ₹78.8 Cr as revenue hits 12-quarter high. Brokerages bullish; Jefferies target ₹350. Stock at 52-week high.
Shares of Nykaa parent FSN E-Commerce Ventures rose over 4% to touch a 52-week high of ₹285.65 during intraday trading on the BSE today. The move came a day after the company reported its fourth-quarter performance for FY26.
Nykaa later pared gains to trade at ₹275.30 (up 0.33%) as of 13:26 IST, with a market capitalisation of ₹78,259.67 Cr ($8.15 Bn). The stock's rally follows a quarterly print that beat expectations on both revenue and profit.
Nykaa's consolidated net profit for the March quarter jumped to ₹78.8 Cr, up from ₹19.1 Cr in the year-ago period – a fourfold increase. The bottom-line growth was driven by operating revenue of ₹2,648.2 Cr, up 28% year-on-year from ₹2,061.8 Cr.
The 28% YoY top-line jump was the highest in the past 12 quarters. Expenses rose in tandem, up 25% YoY to ₹2,535.8 Cr. Revenue growth outpaced cost expansion, allowing margins to expand.
For the full fiscal year, Nykaa's profit grew 182% to ₹203.9 Cr from ₹72.1 Cr. Operating revenue crossed the ₹10,000 Cr mark, reaching ₹10,022.4 Cr, up 26% YoY.
Nykaa's offline footprint expanded meaningfully in FY26. The company added 76 new stores, bringing its total store count to 313 outlets. It also entered 20 new cities during the year.
Same-store sales saw double-digit growth, indicating that existing locations are gaining traction even as the company scales its physical presence. The offline channel is becoming a material contributor to overall revenue, complementing Nykaa's dominant online business.
Several brokerages raised their price targets on Nykaa following the Q4 beat, citing strong topline momentum and improving margins.
Morgan Stanley maintained its "Overweight" rating with a target price of ₹286 per share. The brokerage noted improving marketing efficiency in Nykaa's fashion business, which has historically been a drag on margins. Morgan Stanley, which holds an Alpha Score of 56/100 (Moderate) in our proprietary system, kept its positive stance.
Jefferies raised its target price on the stock to ₹350, maintaining a "Buy" rating. The revised target implies about 27% upside from the current trading level.
Other brokerages including HSBC, Citi, and CLSA shared largely positive outlooks, though specific target prices were not disclosed in the source.
Motilal Oswal struck a more cautious tone, maintaining a "Neutral" stance with a price target of ₹300. The brokerage attributed its outlook to the stock's strong run over the past year.
"We believe much of the growth is now reflected in valuations, and following the strong share price performance over the past year, the near-term risk-reward appears balanced," the brokerage said.
Nykaa's Q4 performance was a clean beat on both revenue and profit. The question is whether the stock's current price already reflects that beat or leaves room for further upside. The divergence between Jefferies' ₹350 target and Motilal Oswal's ₹300 target highlights that debate.
Key insight: The Q4 print confirms that Nykaa's core beauty business is firing on all cylinders – revenue growth accelerating, offline expansion working, and fashion losses narrowing. The risk is that the stock's 52-week high already prices in several quarters of this trajectory. Motilal Oswal's neutral call captures that tension: the business is strong, the entry price matters.
For traders watching the stock, the next catalyst will be whether Nykaa can sustain 25%+ revenue growth in FY27 while maintaining margin expansion. Any slowdown in same-store sales or a reversal in fashion segment losses would weaken the thesis.
Nykaa's Q4 performance was a clean beat. The debate now centers on whether the market is paying a fair price for that trajectory. The range of analyst targets – from ₹286 to ₹350 – reflects that uncertainty. For more on Nykaa and other consumer stocks, see our stock market analysis section.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.