Nykaa share rises 57% in 2025 so far as the rally runs to the seventh month, on track for the largest annual leap

FSN e-commerce Ventures, the parent of Indian Beauty Products dealer Nykaa, recently teared after the September Quarter update release, indicating a sustained growth in 1HFY26. The shares have become a highlight of 40 months after the release of the update Monday, which has so far risen 11% in the current month to reach £ 257.40. This revival has been reflecting a revival in Nykaa shares in recent months, powered by bullish investor sentiment after improving finance, strategic acquisitions, new brands and the steady demand for makeup and skincare products, which has helped the stock higher over the past six months. The recent rally has also forced the share to earn 57% so far in 2025, and if the share maintains this momentum in the following months, it would be its biggest annual profit since the listing in November 2021. Rich valuations have put the share under pressure earlier, but the recent financial performance has facilitated concerns, although the shares have compared to a premium. Higher sales of premium products have achieved sharp growth in its top line over the past two quarters, along with the expansion of the margin, as it added brands such as luxury presentation Chanel, Korean skincare label Aestura and Sunscreen Manufacturer Supergoop to its product, together with its own brands. The Premium segment in India’s beauty and personal care industry of $ 28 billion has disregarded a broader slowdown in urban consumption, as the higher-middle class and wealthy consumers still haunted discretionary items. Q2FY26 income update: Strong growth continues in the September quarter, and the company expects its beauty-voltage momentum to maintain for the tenth consecutive term, with NSV and net turnover growth predicted in the mid-twenties. House of Nykaa brands continued their accelerated growth lane, with a strong performance of both homemade and acquired brands. The company expects the fashion-vertical NSV growth to produce in the higher mid-twenties, indicating a strong improvement in the previous quarters. The net turnover growth of fashion Vertical is expected to improve to low twenties from low to mid-teenage years from the last few quarters, although it is lower than the NSV growth due to lower advertising and marketing income. At a consolidated level, the net turnover growth will be in the middle of the twenties, with an early start of the festive season. GMV growth is expected to exceed the growth of income and approach the thirties. Analysts expect shares to continue with the winning-momentum inland brokerage firm JM Financial, expect the share to continue with better than he believes it is one of the cleanest consumer-led plays in India. The broker noted that the company’s fashion segment is also strongly catching up and that 3Q is expected to break even. With the BPC segment that continues its growth momentum and fashion recovery is strong, leverage is expected to improve further. As a result, Ebitda margin expansion is expected to be expected of more than 155 basis points to 7.1% in 2q. The broker has a ‘buy’ rating on the stock, with a target price of £ 260 each. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions.