Shareholders of FSN E-Commerce Ventures, the parent of Indian beauty retailer Nykaa, seem to be rejoicing at the stellar performance the stock has shown in 2025 — marking a stark reversal from the pain it had seen in recent years.
Though the shares began the year on a tepid note, they gradually picked up pace and also closed the last nine months in positive territory, marking the biggest one-way surge since 2021, even as the broader market remained under sharp volatility.
From a trading price of ₹158 apiece in March, the stock jumped ₹267 to the November close, translating into a massive surge of 69%. This unbreakable run-up not only removed the ‘underperformer’ tag from Nykaa but also positioned it among the top performers in the new-age stock category. The sharp surge has pushed Nykaa’s market capitalisation to above ₹70,000 crore.
In addition, the nine-month winning momentum also contributed to a 52% surge in 2025 so far, and if the stock maintains the same trend in the following trading sessions, it will mark its biggest yearly gain since listing in November 2021.
What led to a sharp turnaround in Nykaa shares?
The sharp turnaround in sentiment can be attributed to the company’s improving financials, strategic acquisitions, new brand tie-ups, steady demand for makeup and skincare products, and signs of revival in its fashion business.
Rich valuations had earlier put the stock under pressure, but the recent financial performance has eased the Street concerns somewhat, although the gap between fundamentals and valuations remains wide, as the stock trades at a PE of 677.
The company posted solid numbers in the recent quarters, including the September quarter, as higher sales of premium products have helped the company achieve sharp growth in its top line, along with margin expansion, as it added brands such as luxury offering Chanel, Korean skincare label Aestura, and sunscreen maker Supergoop to its product lineup, coupled with its own brands.
Its net profit in Q2 came in at ₹34.43 crore, a sharp 243% surge over the same period last year, while revenue from operations witnessed a 25% YoY jump to ₹2,345 crore. This was the 12th straight quarter where revenue stood in the mid-20s, while the company’s gross margins were also at the highest levels in 12 quarters.
The premium segment in India’s $28 billion beauty and personal care industry has defied a broader slowdown in urban consumption, as upper-middle-class and affluent consumers continued to splurge on discretionary items.
Both global brokerage firms, Morgan Stanley and CLSA, maintained their positive outlook on the stock following Q2 results, with the former assigning a target price of ₹271, while the latter expects the stock to rise further to ₹298.
Is Nykaa share price set to keep rising in 2026?
Anshul Jain, Head of Research at Lakshmishree, said, “Nykaa has broken out of a long 145-week IPO base at 225 and is now retesting the breakout zone between 241 and 225, a classic validation phase. The base showed clear institutional accumulation, and breakout volumes were strong, lending credibility to the move.”
“Current pullbacks remain controlled, suggesting supply is getting absorbed rather than distributed. This retest offers a favorable risk–reward entry, with the structure holding as long as 225 remains intact. A sustained bounce from this zone can drive the stock toward the initial IPO base target near 315. Failure below 225 would invalidate the setup, but probabilities favor the retest holding and trend resumption,” he further noted.
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