Analysts highlighted premiumisation and deeper market reach as key growth drivers.
Nykaa shares rose nearly 4% on Wednesday after the company posted strong first-quarter (Q1) results and analysts pointed to bullish chart patterns despite recent weakness.
Earnings Review
The company’s Q1 profit jumped 79% year-on-year to ₹24.47 crore from ₹13.64 crore, while revenue climbed 23% to ₹2,154.94 crore and gross merchandise value (GMV) grew 26% to ₹4,182 crore.
EBITDA rose 50% to ₹141.1 crore, and the total customer base reached 45 million.
The beauty business posted GMV of ₹3,208 crore, up 26%, driven by e-commerce, offline stores, B2B sales, and House of Nykaa brands. Beauty customers grew 29% to 37 million.
The offline network expanded to 250 stores in 82 cities, with retail space up 36% to over 2.5 lakh sq ft. The House of Nykaa brands reported an annual GMV run rate of ₹2,700 crore, with the beauty portfolio at ₹2,300 crore, up 70% year-on-year.
B2B beauty distribution arm Superstore by Nykaa, which the company said is India’s largest network, served 3 lakh retailers in 1,100 cities and recorded Q1 gross merchandise value (GMV) of ₹288 crore, up 40%, supported by a better brand mix and efficiency gains.
In fashion, GMV rose 25% to ₹964 crore, with loss margins narrowing to -6.2% from -9.2%. Traffic grew 30% to 165 million visits, customers rose 32% to 8.5 million, and orders increased 19% to 2 million.
SEBI-registered analyst Mayank Singh Chandel said growth came from premiumisation, deeper market reach, and strong performance in both beauty and fashion segments.
Technical Breakdown
Chandel said Nykaa stock is in a higher-high, higher-low structure, indicating an uptrend.
On the daily chart, it gave a flag and pole breakout, while on the weekly chart, it is close to a cup and handle breakout. A sustained close above ₹230 could drive the stock towards ₹300.
Meanwhile, SEBI-registered analyst Akhilesh Jat said the strong Q1 results triggered a 5% gap-up on August 13, 2025, with the stock now trading above its 50, 100, and 200-day simple moving averages.
He observed a rounding bottom pattern forming, calling ₹230 a key resistance level and ₹190 immediate support.
While he highlighted improving fundamentals and technicals, he advised waiting for a breakout above ₹230 before turning decisively bullish, noting the stock had closed lower for the previous four weeks.
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘bullish’ amid ‘high’ message volume.
Nykaa’s stock has risen 29.1% so far in 2025.
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