Nykaa shares are back in the spotlight. After its Q1 FY26 business update, Nykaa shares rose over 2% to Rs 202.4. The question now is simple: should you buy, sell or hold?
What’s driving Nykaa’s stock up?
The company’s Q1 update shows stable growth. Its core beauty business — the biggest revenue driver — is expected to grow its Gross Merchandise Value (GMV) in the high mid-20% range. That’s a strong sign in a tough economy. Nykaa also expects its overall revenue to grow in the lower end of the mid-20% range this quarter.
Even with external challenges like geopolitical tensions, especially during its key sales event, Nykaa held its ground. That shows resilience.
Fashion arm shows real promise
The fashion segment, which was struggling earlier, is now picking up steam. GMV for fashion is also expected to grow in the mid-20% range. That’s a big turnaround. Revenue growth from fashion is expected in the mid-teens. That’s higher than many experts predicted.
Nykaa also saw good demand across all its formats — online, offline stores, eB2B platforms, and its own brands under the House of Nykaa. The brand mix is working.
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What are the experts saying?
Nomura has a Neutral rating on Nykaa shares with a target price of Rs 216. That’s a 9% upside from today’s price. They expect Nykaa to report 23% revenue growth in Q1, slightly below full-year targets of 26%. They also project 7.5% EBITDA margin for FY26.
On the other hand, CLSA is more bullish. They have an Outperform call with a target price of Rs 229. They noted that while beauty growth slowed a bit, fashion did much better than expected. They now see better balance across segments.
So, should you buy, sell or hold Nykaa shares?
If you’re already holding Nykaa shares, you might want to hold on. The business looks steady. Growth is not explosive, but it’s strong enough.
If you’re thinking of buying, this could be a good entry point. Both fashion and beauty segments are improving. The company is also expanding its brand range and customer base.
However, don’t expect overnight magic. Growth will likely be steady, not sudden. So be patient.
If you were planning to sell, maybe wait a bit longer. The stock has gained 21% this year already. More upside may still come if trends continue.
Nykaa shares are showing signs of strength again. With both beauty and fashion picking up, the company is holding steady in tough times. Experts have mixed views, but the outlook is mostly positive. For retail investors, the call is simple: Hold if you have, buy if you’re patient.j
Disclaimer:
This article is for informational purposes only and is not financial advice. Please consult a certified advisor before making investment decisions.
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