Shares of beauty ecommerce major Nykaa surged as much as 7.8% to INR 265.30 during the intraday trading on the BSE today after the company reported strong Q2 FY26 numbers post market hours on Friday (November 7).

Nykaa’s consolidated net profit zoomed 166% YoY and 35% QoQ to INR 33 Cr in Q2 FY26, while operating revenue surged 25% YoY and 9% QoQ to INR 2,346 Cr.

At 12:05 IST,the stock was trading 6.5% higher at INR 261.95 on the BSE. The company’s market capitalisation stood at INR 74,959 Cr (about $8.5 Bn).

Brokerages gave a mixed reaction to Nykaa’s Q2 numbers. While Morgan Stanley maintained its ‘overweight’ rating and raised target price to INR 271, CLSA retained its ‘outperform’ stance and increased the target price to INR 298. Based on the latest numbers, CLSA also raised its FY26-28 earnings estimates by 2–3%.

However, Citi flagged risks despite some positive operational trends. It has a sell rating on the stock with a target price of INR 175.

Nykaa operates across multiple verticals, including beauty and personal care (BPC) and fashion, and has a cumulative customer base of over 49 Mn.

For the BPC vertical, Morgan Stanley highlighted continued momentum with 28% GMV growth (up from 26% in Q1 FY26) and 25% revenue growth (up from 24% in Q1), in line with Nykaa’s reported 25% revenue growth.

Meanwhile, Citi pointed out that marketing expenses remain elevated in the BPC segment and noted that overall EBITDA margin improvements were partly aided by reduction in losses in the fashion segment.

It is pertinent to note that the fashion segment reported a loss of INR 12 Cr in Q2 FY26. If not for an arbitration award of INR 9.3 Cr, its loss would have stood at INR 21.4 Cr during the quarter.

Nykaa said it expanded its offline network by adding 19 stores in Q2, taking the total store count to 265. Its quick commerce arm “Nykaa Now” also expanded its reach to 7 cities via 53 hubs and fulfilled over 2 Mn orders.

Notably, shares of Nykaa are up over 55% year to date.

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