FSN E-Commerce Ventures (Nykaa) shares traded at ₹170.67, up 0.73 per cent on NSE at 11.35 AM on Tuesday, even as its third-quarter net profit missed market expectations. Morgan Stanley maintained an ‘Overweight’ rating with a target price of ₹200, while JM Financial set a higher target of ₹240, citing the company’s strong performance in its beauty and personal care (BPC) segment.
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The beauty e-commerce platform reported a 51 per cent year-on-year rise in Q3 consolidated net profit to ₹26.41 crore, while revenue grew 26.7 per cent to ₹2,267.21 crore. The BPC segment contributed ₹2,060.01 crore to quarterly revenue, though the fashion vertical posted a loss of ₹25.41 crore amid weak demand.
EBITDA increased 42 per cent to ₹140.8 crore, with operating margin expanding 70 basis points to 6.2 per cent. The company’s gross merchandise value rose 25 per cent to ₹4,528 crore, driven by a 32 per cent growth in beauty GMV to ₹3,390 crore. Order volumes grew 30 per cent, marking the highest growth in nine quarters.
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Nykaa expanded its physical presence to 221 stores across 73 cities, with retail space growing 31 per cent year-on-year to 2.1 lakh square feet. The company also increased its stake in Earth Rhythm Private Limited to 74.63 per cent with an additional investment of ₹39.50 crore in November 2024.