Nykaa ‘Finding Its Glow’ Amid Strong Q2 Growth; SEBI Analyst Sees 25% Upside Potential
The analyst said the stock remains strong above ₹245, with improving volumes and sentiment indicating a potential move toward ₹325.
Shares of Nykaa dipped close to 2% on Wednesday, cooling off after hitting a one-year high earlier in the week. The pullback came after the company released its September-quarter update, which showed continued growth across its beauty and fashion businesses.
In a regulatory filing on Sunday, Nykaa said it saw accelerated momentum in Q2 FY26 and anticipates consolidated revenue growth in the mid-twenties range. The firm said an early festive season and improving consumer sentiment aided sales growth.
It also expects GMV growth to be closer to 30%, up from the mid-twenties in the last few quarters, with renewed momentum in fashion and a steady performance in beauty.
SEBI-registered analyst Mayank Singh Chandel said Nykaa is “finding its glow again” after months of underperformance post-IPO. He said the company’s September-quarter results showed strong momentum helped by festive demand and a revival in fashion, with its in-house beauty brands continuing to perform well.
Technicals Suggest Momentum To Continue
Chandel said the stock’s chart tells a story of gradual recovery. Nykaa has built a rounding bottom pattern, a sign that the market is shifting from selling to accumulation, he said. According to him, the stock has already broken out above ₹245–₹260, a key resistance zone, confirming renewed strength.
He added that as long as Nykaa holds above this zone, the trend remains positive. His trading plan includes a stop-loss below ₹190 and next upside levels at ₹300 and ₹325. He said the setup looks solid, supported by higher lows, better volumes, and improving sentiment among traders.
Chandel summed up his view with a message on patience: “Markets reward those who stay patient. The glow always returns, you just have to wait for the right light.”
Strong Q2 Business Update
Nykaa’s beauty vertical continues to lead the business, with growth in the mid-twenties for both net sales value and revenue. The company highlighted over ten consecutive quarters of sustained growth, supported by strong sales from homegrown labels such as Kay Beauty and Nykaa Cosmetics, as well as acquired brands like Dot & Key.
The fashion segment also showed progress, with NSV growth in the mid-to-high twenties and a healthy increase in customer acquisition. Nykaa said that its fashion net revenue growth is improving to the low twenties, compared to the low-to-mid teens seen earlier, although the difference between net revenue growth and NSV is due to a lag in advertising and marketing income.
The company added that recent GST reforms could prove to be a long-term positive for discretionary spending. “These reforms are expected to increase disposable income and drive long-term growth across several consumer and discretionary categories,” it said.
What Is The Retail Mood?
On Stocktwits, retail sentiment for Nykaa was ‘bullish’ amid ‘high’ message volume.
Nykaa’s stock has risen 57% so far in 2025.
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