Goldman Sachs maintained a “Neutral” rating on the stock but raised its target price to ₹290 from ₹280 earlier. The new target, however, still implies a downside of about 11% from last Thursday’s closing price of ₹324.95.
Nykaa indicated that consolidated net sales value (NSV) growth in the second quarter of financial year 2027 (Q2FY27) was in the early 30s percentage range, broadly similar to the 33% growth reported in the June quarter. Consolidated net revenue growth was in the late 20s.
Goldman Sachs said Nykaa’s expected Q2FY27 NSV growth in the early 30s is broadly in line with its 32% forecast. The brokerage said the performance was “particularly impressive,” given the shift in festive timing in FY27, with the festive-led growth opportunity moving from Q2 to Q3.
Beauty, fashion segments continue to grow
In the beauty and personal care (BPC) segment, NSV growth was in the late 20s percentage range, compared with 29% YoY growth in Q1FY27. Net revenue growth for the Beauty vertical was also in the late 20s.
Nykaa added 14 net new stores during the quarter, taking its total store count to 338 as of September 30. Like-for-like store sales growth was in the early 20s, the highest in the last six quarters. House of Nykaa also continued to grow ahead of the overall Beauty vertical.
The Fashion vertical continued to outperform, with NSV growth in the late 40s percentage range and net revenue growth in the early 40s. More than 250 brands were added during the quarter, while the company’s partnership with Nike saw early traction supported by exclusive drops.
Goldman Sachs said investors had been somewhat concerned about a potential growth deceleration in the September quarter due to the shift in festive timing. Based on its recent conversations with investors, the brokerage said Nykaa’s results were ahead of investor expectations, although broadly in line with its own estimates.
Stock performance, analyst view
28 analysts cover Nykaa’s parent, of which 16 of them have a “buy” rating on the stock, while six each have a “hold” and “sell” rating. The consensus estimate of price targets implies an upside potential of only 3% from the current price.
Shares of Nykaa are trading 5.5% higher after the business update announcement at ₹342.6, and is close to its 52-week high of ₹349.5. The stock is up nearly 30% so far this year.
The stock is currently around 48% above its 52-week low of ₹231.24, seen on October 1, 2025. The stock has delivered a 34% return over the last 12 months and more than 29% so far in 2026.