JM Financial maintains a ‘Buy’ rating on FSN E-Commerce Ventures, describing it as one of the “cleanest consumption-led plays in India” and expects the stock to continue outperforming. The stock price was trading 2% up intraday today.
Nykaa: Consolidated growth highest in three years
Nykaa is expected to report consolidated net revenue growth in the late twenties, marking its strongest performance in the last 12 quarters. Overall, Gross Merchandise Value (GMV) growth is also projected to be in the late twenties.
Nykaa fashion segment outperforms
The Fashion vertical is a major highlight, with Net Sales Value (NSV) growth expected in the early forties, which significantly exceeded JM Financial’s initial expectations. This growth was driven by robust customer acquisition, a superior brand assortment (including a partnership with Nike), and the “Pink Live Sale”.
Resilient beauty and personal care (BPC) performance
The BPC vertical continues to show robust performance with revenue growth in the late twenties. This segment was particularly supported by the “House of Nykaa” brands, which scaled faster and contributed meaningfully to the overall results.
“4Q has seen broad-based growth across businesses; however, House of Nykaa has scaled faster and contributed meaningfully to overall performance. Net revenue growth for the Beauty vertical is expected to be in the late twenties,” said JM Financial.
JM Financial on Nykaa: Improving operating leverage
With the recovery in the Fashion segment and sustained momentum in Beauty, JM Financial expects the company’s operating leverage to improve. The brokerage expects a YoY EBITDA margin expansion of over 100 basis points, consistent with the trend seen in previous quarters.
Nykaa share price performance
The share price of Nykaa has risen 5% in the last five trading days. The stock price has given a return of 1.6% in the last one month and has dropped 1.4% in the past six months. Nykaa’s stock price has raised investors’ wealth by 44% over the previous 12 months.
Nykaa Q3FY26
The company reported a consolidated net profit of Rs 63.31 crore, a steep growth of 141.55% year-on-year (YoY) in the December quarter of FY26, compared to Rs 26.12 crore in the corresponding period of the previous fiscal year.
Nykaa’s revenue from operations surged 26.73% YoY to Rs 2,873.26 crore during the quarter under review, as against Rs 2,267.21 crore in the Q3FY25.
At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation), also known as operating profit, stood at Rs 230 crore for Q3 of FY26, reflecting a 63% YoY jump from Rs 141 crore in the year-ago period.
