Shares of FSN E-Commerce Ventures Ltd, parent company of online beauty and fashion retailer Nykaa, experienced significant volatility today, August 5, 2026. After hitting a fresh 52-week high of Rs 348.30, the stock saw profit booking, slipping 3.10% to Rs 327.70. The company's market capitalization stood at Rs 95,496 crore.
Strong Q1 Earnings Drive Initial Rally
The initial surge in Nykaa's stock price was fueled by impressive first-quarter earnings. The company reported a more than threefold jump in net profit, reaching Rs 79.76 crore compared to Rs 24.47 crore in the same period last year. This also surpassed the Rs 78 crore profit recorded in the preceding quarter (Q4 of the previous fiscal year).
Key financial highlights from Q1 include:
- Gross Profit: Climbed 33% year-on-year to Rs 1,276 crore.
- EBITDA: Rose 68% to Rs 236 crore.
- EBITDA Margin: Reached a 12-quarter high of 8.5%, up from 6.5% a year ago.
- Revenue from Operations: Surged 29% year-on-year to Rs 2,782 crore, compared to Rs 2,155 crore in the year-ago quarter.
Total expenses for the quarter increased to Rs 2,662.15 crore, up from Rs 2,120.56 crore a year ago.
Brokerage Houses Revise Price Targets
Following the strong Q1 performance, several brokerage firms have updated their outlook and price targets for Nykaa shares:
JM Financial
JM Financial maintains a bullish stance on Nykaa, raising its target price to Rs 395 from an earlier target of Rs 360. The brokerage cited improved Q1 performance, leading to a 30-70 basis points increase in consolidated EBITDA margin estimates for FY27–29. They expect Nykaa to sustain growth, with higher profits from its Beauty and Personal Care (BPC) segment and a gradual contribution to profitability from the Fashion segment in FY27.
MOFSL
MOFSL assigned a target price of Rs 370 for the fashion retailer. However, the brokerage reiterated a 'Neutral' rating, stating that valuations remain a key deterrent and they await a better risk-reward profile to turn constructive on the stock.
Nuvama
Nuvama has set an ambitious price target of Rs 414 for Nykaa, up from its previous target of Rs 351, implying a potential upside of 21%. They maintained a 'BUY' rating, tweaking revenue and EBITDA estimates slightly for FY27 and FY28 and changing their valuation methodology to a Sum-of-the-Parts (SoTP) approach.