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Nykaa Jumps After Q2 Profit Triples as Margins Expand and GMV Rises 30%

Improved margins and faster GMV growth prompted a broad uptick in brokerage targets.

Overview

  • Shares rose up to 7.9% intraday and closed about 6% higher near Rs 260 after the September-quarter release.
  • Consolidated net profit climbed to about Rs 34.4 crore, revenue rose 25% to Rs 2,346 crore, and EBITDA increased ~53% to Rs 158–159 crore with margin at 6.8%, the highest since listing.
  • GMV reached roughly Rs 4,744 crore, up 30% year on year, with beauty growing 28% and fashion rebounding; fashion reported a Rs 12 crore loss that was reduced by a Rs 9.3 crore arbitration award.
  • Operationally, Nykaa added 19 physical stores in the quarter and expanded quick-commerce coverage, with its ‘Nykaa Now’ network reaching seven cities via 53 hubs and fulfilling over 2 million orders.
  • Brokerages largely turned more constructive—Morgan Stanley kept Overweight (TP Rs 271), CLSA raised its target to Rs 298, and Nuvama reiterated Buy—while others cautioned that premium valuation and rising competition could cap upside, with Citi retaining Sell (TP Rs 175).