Nomura has maintained its Neutral rating on FSN E-Commerce Ventures Ltd (Nykaa), with a target price of ₹216, implying a potential upside of 8.9% from the current market price of ₹198.40. The brokerage expects the company to deliver a steady Q1FY26 performance, with revenue growth broadly in line with estimates.
Nomura estimates consolidated revenue growth of 23% year-on-year for the June quarter—slightly below its full-year projections of 26% for FY26F and 24.5% for FY27F. Within segments, net revenue growth for the beauty and personal care (BPC) category is projected at around 25–26%, while the fashion segment is expected to grow at a more modest 15–16%.
Despite the marginal shortfall versus full-year expectations, Nomura believes Nykaa remains on track to maintain profitability improvements, forecasting EBITDA margins of 7.5% in FY26F and 8.7% in FY27F. The brokerage did not flag any significant concerns but chose to remain neutral, citing balanced near-term risk-reward at current levels.
Disclaimer: The views expressed above are those of Nomura and do not constitute investment advice. This article is for informational purposes only.
