Shares of FSN E-Commerce Ventures, commonly known as Nykaa, exhibited volatility on Friday morning, reversing an initial rally to trade at ₹272.85, a decline of 0.60% from the previous close of ₹274.50 as of 10:52 AM. The stock opened significantly higher at ₹283.50 and reached a new 52-week peak of ₹285.60 before pulling back, driven by sell orders that accounted for nearly 70% of the total traded volume. Mid-morning trading reflected a volume of 172.28 lakh shares and a value of ₹477.63 crore, indicating substantial institutional activity. Over the past year, Nykaa’s stock has surged 35.55%, outperforming the Nifty Midcap 50 index, which saw a return of 10.80% during the same timeframe.
This price movement follows the release of the company’s fourth-quarter results for FY26, which served as the catalyst for the recent shifts. Nykaa reported a record quarterly EBITDA margin of 8.4%, with revenue increasing 28% year-on-year to ₹2,648 crore, and a remarkable net profit growth of 313% to ₹79 crore. For FY26, Nykaa achieved its first-ever revenue surpassing USD 1 billion, with the full-year profit after tax (PAT) rising by 183%.
Analyst perspectives on the stock are notably divided. Jefferies elevated its target price to ₹350 with a ‘Buy’ recommendation, noting that the fashion vertical’s EBITDA breakeven suggests successful management efforts toward profitability. CLSA maintained an ‘Outperform’ rating and increased its target from ₹328 to ₹338, driven by faster-than-anticipated sales growth, although it slightly reduced earnings estimates for FY27–28 due to higher depreciation costs. JM Financial reiterated a ‘Buy’ stance at a target of ₹335, projecting an approximate 50% EBITDA compound annual growth rate (CAGR) through FY29. Morgan Stanley retained its ‘Overweight’ recommendation with a target of ₹286, highlighting improved marketing efficiency within the fashion segment.
Conversely, HSBC kept its ‘Hold’ rating with a target of ₹273, observing strong execution but noting that the stock trades at a lofty 67 times FY28 EV/EBITDA. Motilal Oswal reaffirmed a ‘Neutral’ rating with a target of ₹300, suggesting that much of the growth is already reflected in the stock price after its notable rise. Citi maintained a ‘Sell’ rating, with a price target of ₹225, representing the most pessimistic outlook on the market.
Currently, Nykaa’s share price of ₹272.85 falls below the targets set by most bullish analysts but remains above those of HSBC and Citi, indicating a lack of consensus in the market. With a symbol P/E ratio of 385x, valuation continues to be a prominent topic of debate, despite the company’s ongoing operational success.
Published on May 22, 2026.
