'Add' Nykaa Shares Maintains ICICI Securities — Here's Why

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ICICI Securities Report

On June 26, 2025, FSN E-Commerce Ventures Ltd. hosted an Analyst Day, outlining its strategy across segments. Management is targeting ~25% gross merchandise value compound annual growth rate in beauty and personal care over FY25–30, leveraging both penetration and premiumisation.

Nykaa Now (two-hour delivery), aimed at countering quick commerce, is now live across >40 stores in seven cities. Scale-up in this segment and its impact on profitability shall be keenly watched.

Nykaa aims to scale fashion GMV by 3–4x by FY30, with Ebitda breakeven by FY26 and reach mid-to-high single-digit Ebitda margin by FY28.

Management plans to scale its House of Nykaa (beauty) portfolio to Rs 60 billion GMV by FY30, implying ~30% GMV CAGR.

We maintain our Add rating on the stock with an unchanged target price of Rs 230.

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