Nykaa Shares Surge After Impressive Q3 Update, Analysts Predict Further Upside

Nykaa’s stock opened with an upside gap on Monday, January 6, reaching an intraday high of ₹176.60 within minutes of market opening, following the release of a robust Q3 update for FY 2024-25. FSN E-Commerce Ventures Ltd (Nykaa) reported substantial growth across its verticals, with impressive revenue expansion driving investor optimism.
Q3 Update: Strong Performance Across Verticals
Nykaa’s Fashion vertical is poised to achieve net revenue growth of around 20%, while its Net Sales Value (NSV) is projected to grow in the low to mid-teens. This performance reflects strong content, marketing, and service-related income, contributing to a positive outlook for the company. The beauty vertical remains a key driver, with the GMV (Gross Merchandise Value) expected to grow in the “low thirties,” and net revenue likely surpassing “mid-twenties.” This growth is supported by strong performance in e-commerce, retail stores, owned brands, and the expanding eB2B distribution network, “Superstore by Nykaa.”
“Superstore by Nykaa” now accounts for 8% of the beauty GMV, up from 7% last year, serving 260,000 retailers across 1,100+ cities, which highlights Nykaa’s expanding footprint.
Positive Analyst Sentiment
Analysts are optimistic about Nykaa’s growth prospects, with some predicting the stock could climb to ₹185 per share in the near term. Mahesh M Ojha, AVP—Research at Hensex Securities, suggested a “buy-on-dips” strategy, noting that Nykaa’s stock has formed a strong base around ₹166 to ₹168. He believes that the stock could break the ₹175 resistance and touch ₹185 as the Q3 results approach.
Strong Growth Drivers
Nykaa’s strong performance in Q3 FY2025 is reflected in its consolidated net revenue growth, which is likely to surpass mid-twenties, outpacing GMV growth. The beauty vertical’s growth has accelerated, with GMV growth in the low thirties, indicating robust demand across all of Nykaa’s beauty businesses. The fashion segment continues to show steady progress, and the ongoing growth of the eB2B business further enhances the company’s market positioning.
Outlook and Strategy
With customer acquisition accelerating and consistent growth across its business segments, Nykaa is well-positioned for continued success. Analysts suggest that investors maintain a “buy-on-dips” approach, with a target of ₹185 per share. As long as the stock remains above ₹166, it is expected to be bullish, and the momentum could continue well into the next quarter.