Shares of FSN E-Commerce Ventures Ltd, the parent company of beauty retailer Nykaa, edged lower today (Monday, 2nd June) even after the firm posted a sharp rise in its quarterly earnings for the period ending March 31, 2025.
The company reported a consolidated net profit of Rs 20 crore in the fourth quarter of FY25, marking a 193 percent increase from Rs 7 crore in the same quarter last year. Consolidated revenue also climbed, reaching Rs 2,062 crore, up 24 percent from Rs 1,668 crore in Q4FY24.
Nykaa’s consolidated EBITDA rose 43 percent year-on-year to Rs 133 crore, while its EBITDA margin improved to 6.5 percent in Q4FY25 from 5.6 percent in the previous year.
Segment-wise, the company recorded sales of Rs 1,895 crore in its consolidated beauty operations during the March quarter, up from Rs 1,520 crore in Q4FY24. Its fashion segment also saw growth, with revenue rising to Rs 161 crore from Rs 145 crore year-on-year.
Despite the earnings boost, Nykaa’s share price slipped by around 0.5 percent in early trading, quoted at Rs 202.28 on the NSE as of 9:20 am on 2nd June.
Brokerages remain split on their outlook for the stock.
The beauty and personal care division sustained robust double-digit growth, accompanied by a notable improvement in profitability. According to Nuvama Institutional Equities, the fashion segment is expected to show positive momentum in the first quarter of FY26, as key industry challenges appear to have stabilised. Reflecting this outlook, the brokerage has raised its target price from ₹205 to ₹235 per share, while maintaining a ‘buy’ recommendation.
Nomura, while keeping a ‘neutral’ stance, increased its target price to Rs 216 from Rs 190. “Nykaa’s focus on onboarding new global brands, expanding stores and product curation should continue to drive strong revenue growth in BPC. But margin improvement thus far has been slow and needs to pick up for us to turn more constructive,” the brokerage stated.
HSBC, however, downgraded the stock to a ‘hold’ rating and trimmed its price target to Rs 200. The firm raised concerns over Nykaa’s previous goal of reaching breakeven EBITDA margins in its fashion segment by FY26, cautioning that the widely expected 150 basis point improvement in margins may be at risk.
