Nykaa Q1 FY27 profit jumps 243%; Jefferies raises target while Macquarie stays bearish

Nykaa reported Q1 FY27 revenue growth of 29% to Rs 2,782 crore and EBITDA growth of 67.8% to Rs 236 crore, lifting margin 200 bps to 8.5%. Fashion grew over 50% and reached EBITDA break-even. Jefferies lifted its target to Rs 400, while Macquarie retained an underperform view and Rs 220 target.

— Source publishedWed, 5 Aug, 2026, 08:16 IST·First seen Wed, 5 Aug, 2026, 08:33 IST·Source NDTV Profit

What happened

Nykaa reported strong Q1 FY27 growth, with profit nearly tripling, revenue up 29% and EBITDA margin expanding to 8.5%. Jefferies raised its target to Rs 400,

Key facts

  • Q1 FY27 net profit rose 243.3% YoY to Rs 80 crore from Rs 23.3 crore
  • Revenue rose 29% YoY to Rs 2,782 crore from Rs 2,155 crore
  • EBITDA rose 67.8% YoY to Rs 236 crore from Rs 140.7 crore
  • EBITDA margin expanded 200 bps to 8.5% from 6.5%
  • Jefferies target price raised to Rs 400 from Rs 350
  • Macquarie maintained Rs 220 target price versus market price of Rs 342.50
  • Fashion segment grew over 50% and reached EBITDA break-even

Why this matters

Fashion’s break-even and 50%-plus growth make adjacent-category partnerships, exclusive brands and selective capability acquisitions more strategically compelling.

What to watch

  • Whether fashion remains EBITDA-positive for the next two to three quarters, rather than returning to losses during sale periods.
  • Beauty GMV and revenue growth relative to the reported 29% company growth rate.
  • EBITDA margin progression beyond 8.5%, especially whether the 200-bps improvement is maintained after growth investments.
  • Marketing, fulfillment and employee costs as percentages of revenue.
  • Gross-margin performance and mix shift toward private labels, premium beauty, advertising and marketplace income.
  • Repeat-purchase trends, active customer growth and order-frequency data.
  • Any rise in fashion returns, discounting or inventory-led working-capital pressure.
  • Broker estimate revisions after the next quarterly result, which will show whether Jefferies' or Macquarie's assumptions are gaining support.
  • Increase selective spending on fashion assortment, private labels and customer retention now that the segment has reached EBITDA break-even.
  • Use stronger profitability to deepen quick-commerce, same-day delivery and omnichannel beauty capabilities without relying as heavily on promotional intensity.
  • Accelerate monetization of the platform through brand advertising, marketplace services and higher-margin owned brands.
  • Management is likely to emphasize the durability of margin gains and provide more segment-level fashion profitability disclosure to counter valuation concerns.
  • Rivals may respond with sharper beauty and fashion promotions, raising the risk that sector-wide customer-acquisition costs increase.