Nykaa Shares: Is It a Good Buy After Its Q4 Results?

Synopsis: FSN E-Commerce Ventures Ltd (Nykaa) shares are in focus after posting strong Q4FY26 results with revenue rising 28% YoY and profit jumping 315%. Jefferies and CLSA stayed bullish, while Goldman Sachs remained Neutral. Citi and Macquarie stayed cautious due to high valuations despite improving margins and fashion breakeven.

The shares of a Mid-Cap company specialising in online retail of beauty, personal care, and fashion products, are in focus in the day’s trade following their Q4 results and brokerage views post their Results.

With a market capitalisation of Rs. 78,001.95 crores in the day’s trade, the shares of FSN E-Commerce Ventures Ltd rose upto 4 percent, making a high of Rs. 285.65 per share compared to its previous closing price of Rs. 274.40 per share.

What Happened

FSN E-Commerce Ventures Ltd, engaged in online retail of beauty, personal care, and fashion products, is in focus following their Q4 results as follows: Revenue from operations increased by 28.4 percent YoY from Rs. 2,062 Crores in Q4FY25 to Rs. 2,648 Crores in Q4FY26. On a QoQ basis, it decreased by 7.8 percent from Rs. 2,873 Crores in Q3FY26 to Rs. 2,648 Crores in Q4FY26.

Net Profit increased by 314.7 percent YoY from Rs. 19.0 Crores in Q4FY25 to Rs. 78.8 Crores in Q4FY26. On a QoQ basis, it increased by 16.4 percent from Rs. 67.7 Crores in Q3FY26 to Rs. 78.8 Crores in Q4FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 0.27, compared to Rs. 0.07 in the previous year’s quarter.

The company has a ROCE of 17.2% and ROE of 15.3%, which indicates it is generating healthy returns on both its capital employed and shareholders’ equity. This suggests efficient management and a reasonably strong ability to convert investments into profits.

The company has also delivered a strong profit growth of 27.7% CAGR over the last 5 years, showing consistent expansion. However, it has a debt-to-equity ratio of 0.86, which indicates moderate leverage.

Revenue Segmentation

For the quarter ended March 31, 2026, the total segment revenue stood at Rs. 2,648.17 crore. This was driven primarily by Beauty at Rs. 2,409.94 crore, followed by Fashion at Rs. 225.33 crore and Others at Rs. 12.90 crore. 

On a year-on-year basis compared to March 31, 2025 (Rs. 2,061.76 crore), overall revenue showed strong growth, supported mainly by the expansion in the Beauty segment, which rose significantly from Rs. 1,894.76 crore.

However, on a sequential basis, revenue declined compared to December 31, 2025 (Rs. 2,873.26 crore). The dip was seen across segments, with Beauty decreasing from Rs. 2,622.36 crore and Fashion from Rs. 235.00 crore, while Others also softened slightly. Despite this quarterly moderation, the revenue base remained substantially higher than the same period last year, indicating continued underlying growth momentum.

Brokerage views

Jefferies has maintained a Buy rating on Nykaa and raised its target price to Rs. 350 from Rs 315. The brokerage is positive on the company’s strong operational performance, noting healthy growth across key segments and continued momentum in the core beauty and personal care business, which supports improved earnings visibility going ahead.

It also highlighted accelerating traction in the fashion segment as a key growth driver, along with improving progress toward breakeven in that business. Strong performance from own brands remains another key strength. Overall, the firm maintains a constructive medium-term outlook despite some caution on the broader macro environment.

Macquarie Group has maintained an Underperform rating on Nykaa with a target price of Rs. 210. The brokerage noted that while the company continues to show operational progress, its overall risk–reward remains limited at current valuations.

Macquarie highlighted that beauty segment margins remain healthy and stable. It also pointed out a key milestone in the fashion business, which has reached EBITDA breakeven, indicating improved cost discipline and scale benefits.

However, the report also flagged moderation in beauty advertising income growth and slower momentum in own-brand expansion. These trends could weigh on near-term growth visibility despite some underlying operational strengths.

Citigroup has maintained a Sell rating on Nykaa while raising its target price to Rs. 225 from Rs. 215. The brokerage noted some operational improvements but remains cautious on the stock’s overall valuation and growth trajectory.

Citi highlighted that margins improved mainly due to lower fixed costs, indicating better cost control. It also noted that losses in the fashion business have reduced, showing gradual progress toward profitability.

In addition, the report pointed out improvement in beauty and personal care gross margins, reflecting better efficiency in the core segment. However, despite these positives, Citi continues to prefer a cautious stance on the stock.

Goldman Sachs has maintained a Neutral rating on Nykaa and raised its target price to Rs. 255 from Rs. 240. The brokerage was positive on the company’s Q4 performance, noting strong revenue and NSV growth along with improving profitability trends.

It reported Q4 NSV growth of 31% YoY and revenue growth of 28% YoY, while EBITDA margin expanded to 8.4%. The fashion segment also achieved EBITDA breakeven ahead of expectations, marking a key milestone in operational progress.

Goldman Sachs further highlighted the scaling up of its own DD1 brands as a positive driver. Investments in a verticalised model and faster delivery are supporting growth momentum, leading the brokerage to raise its EBITDA estimates by 2–4% post results.

CLSA has maintained an Outperform rating on Nykaa with a target price of Rs. 338, revised up from Rs. 328. The brokerage noted strong Q4 performance, including 28% YoY revenue growth and the highest-ever EBITDA margin of 8.4%, which came in 8% above consensus expectations.

Beauty NSV grew 29% YoY, supported by strong momentum in margin-accretive own brands, which rose 54% and lifted EBITDA margins. The fashion segment also delivered robust 42% YoY NSV growth and achieved EBITDA breakeven, marking a key operational milestone.

However, EBIT came in slightly below estimates due to higher-than-expected depreciation. CLSA has trimmed FY27–FY28 earnings estimates by 1–2%, but remains positive on continued EBITDA margin expansion driven by rising own-brand contribution and operating leverage.

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