JM Financial Reiterates ‘Buy’ on Nykaa as Fashion Drives Record Growth

JM Financial has maintained a ‘Buy’ rating on FSN E-Commerce Ventures (Nykaa), calling it one of the “cleanest consumption-led plays in India,” amid strong operational performance and improving profitability. The stock rose 2% intraday, extending recent gains — up 5% over five days and delivering a 44% return over the past year. Nykaa is expected to report consolidated revenue growth in the late twenties for Q4 FY26 — its strongest performance in three years, driven by broad-based momentum. GMV growth is also projected in the same range. The Fashion segment emerged as a key driver, with NSV growth in the early forties, fueled by successful campaigns like Pink Live Sale, new brand partnerships (including Nike), and strong customer acquisition. Meanwhile, the Beauty & Personal Care (BPC) vertical delivered solid late-twenties revenue growth, led by rapid scaling of in-house brands under the House of Nykaa. Operating leverage continues to improve — JM Financial expects EBITDA margins to expand over 100 bps YoY, consistent with the trend seen in Q3, where EBITDA surged 63% to ₹230 crore on revenue of ₹2,873 crore (up 26.7%). Net profit jumped 141.6% to ₹63.3 crore. With both core verticals firing and profitability rising, Nykaa is demonstrating sustainable scale in India’s digital consumption story — positioning it for continued outperformance.