Synopsis: The e-commerce platform reported strong Q2 results with robust revenue, profit, and margin growth, driven by an expanding customer base and an omni-channel presence. A major brokerage’s upgrade and raised earnings outlook signal continued momentum and potential for sustained market out performance.
The share of this e-commerce company gained up to 6 percent in today’s trading session after the company’s net profit and revenue zoomed by 153 percent and 25 percent, respectively, in Q2Y26.
With a market capitalization of Rs 73,958 crore, the shares of FSN E-Commerce Ventures Ltd were trading at Rs 258.25 per share, increasing around 5 percent as compared to the previous closing price of Rs 245.95 apiece
Q2FY26 Highlights
The shares of FSN E-Commerce Ventures Ltd have seen significant movement after announcing its financial performance in Q2FY26, in which revenue increased by 25 percent on a year-on-year basis from Rs 1,875 crore in Q2FY25 to Rs 2,346 crore in Q2FY26. However, on a Quarter-on-Quarter basis, revenue zoomed by 9 percent from Rs 2,155 crore in Q1FY26 to Rs 2,346 crore in Q2FY26.
Moreover, net profit increased by 153 percent on a yearly basis from Rs 13 crore in Q2FY25 to Rs 33 crore in Q2FY26, meanwhile, on a quarter-on-quarter basis, net profit jumped by 38 percent from Rs 24 crore in Q1FY26 to Rs 33 crore in Q2FY26.
Further, Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 53% to Rs 158.5 crore compared with Rs 103.6 crore in the year-ago period. The company’s EBITDA margin expanded to 7 percent from 5 percent a year ago.
Additionally, Nykaa’s consolidated Gross Merchandise Value reached Rs 4,744 crore in the second quarter of fiscal year 2026, up 30% year-on-year. Gross profit grew 28% year-on-year to Rs 1,054 crore, marking the highest gross margin in the last 12 quarters. This quarter also represents the twelfth consecutive quarter of mid-20s percent growth in revenue from operations.
CLSA, one of the well-known brokerages globally, gave a ‘Buy’ recommendation on this e-commerce stock with a target price of Rs 298 apiece, indicating a potential upside of 21 percent from the previous closing price of Rs 245 per share.
CLSA highlighted Nykaa’s strong performance, reporting a 25% year-on-year revenue growth and a 125-basis-point EBITDA margin expansion, with EBITDA 4% above estimates. Profitability improved across segments, beauty NSV rose 27%, while fashion margins expanded 550bps YoY. Reflecting this solid performance, CLSA raised its FY26–FY28 earnings estimates by 2–3%, signaling continued growth momentum.
Nykaa continues to scale rapidly, boasting a 49 million cumulative customer base, up 32% YoY. It operates 265 beauty stores across 90 cities, featuring around 4,200 beauty and 5,000 fashion brands. With 53 rapid stores in 7 cities enabling 30–120 minute deliveries, Nykaa achieved an impressive $2.2 billion annualized GMV across platforms, underscoring strong omni-channel growth.
FSN E-Commerce Ventures Ltd, popularly known as Nykaa, is India’s leading beauty, fashion, and lifestyle platform. Founded in 2012, it has revolutionized online retail with an omni-channel model, offering top global and domestic brands. Nykaa combines technology, curation, and content to deliver a personalized and seamless shopping experience.
Written By Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
