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FSN E-Commerce Ventures Ltd. (IN:NYKAA)
:NYKAA
India Market
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FSN E-Commerce Ventures Ltd. (NYKAA) AI Stock Analysis

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IN:NYKAA

FSN E-Commerce Ventures Ltd.

(NYKAA)

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Neutral 64 (OpenAI - Gpt-5.6Sol)
Rating:64Neutral
Price Target:
₹358.00
▲(7.57% Upside)
Action:Reiterated
Date:08/23/26
The score is driven primarily by improving financial performance (re-accelerating growth, margin expansion, and a strong FY2026 free-cash-flow rebound) and supportive technical trend signals (price above key moving averages with positive momentum). These positives are materially offset by very expensive valuation (P/E 375.28) and the business still showing thin net margins and prior cash-flow volatility.
Positive Factors
Revenue and Gross Margin Reacceleration
Revenue growth re-accelerated to 13.5% in FY2026 after a flat FY2025, while gross margin rose from 32.0% to 34.2%. This combination indicates improving demand and merchandising economics, providing a stronger base for sustained operating leverage.
Negative Factors
Thin Net Profitability
Net margin improved to approximately 2.0% from approximately 0.8%, but remains thin for a retailer. Limited earnings cushion leaves profitability vulnerable to discounting, fulfillment costs or weaker demand, so modest operational setbacks could materially affect bottom-line returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Gross Margin Reacceleration
Revenue growth re-accelerated to 13.5% in FY2026 after a flat FY2025, while gross margin rose from 32.0% to 34.2%. This combination indicates improving demand and merchandising economics, providing a stronger base for sustained operating leverage.
Read all positive factors

FSN E-Commerce Ventures Ltd. (NYKAA) vs. iShares MSCI India ETF (INDA)

FSN E-Commerce Ventures Ltd. Business Overview & Revenue Model

Company Description
FSN E-Commerce Ventures Limited, through its subsidiaries, engages in selling and distribution of beauty, personal care, and fashion products for women, men, children, and home in India and internationally. The company offers makeup; bath and body...
How the Company Makes Money
Nykaa makes money primarily by selling beauty, personal care, and fashion products to consumers through its online platforms and offline stores. Its key revenue streams include: (1) Product sales/retail margins: Nykaa earns a gross margin on produ...

FSN E-Commerce Ventures Ltd. Financial Statement Overview

Summary
Fundamentals are improving: FY2026 revenue growth re-accelerated to 13.5% with gross margin expansion (32.0% to 34.2%) and better profitability (net margin ~2.0% vs ~0.8%). Cash flow also rebounded strongly (FCF ~4.3B), but net margins remain thin and historical cash-flow volatility plus still-material leverage keep the quality score below top tier.
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
70
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue106.49B100.22B79.50B79.50B63.86B51.44B
Gross Profit42.58B34.24B25.45B34.77B27.39B22.78B
EBITDA8.63B7.68B5.01B2.97B2.00B1.38B
Net Income2.56B1.99B660.80M660.80M322.60M192.62M
Balance Sheet
Total Assets0.0046.11B39.80B34.01B29.50B26.46B
Cash, Cash Equivalents and Short-Term Investments4.18B4.18B2.92B2.60B2.99B6.57B
Total Debt0.0012.38B13.21B9.69B7.98B5.93B
Total Liabilities-15.02B31.09B26.37B21.20B15.58B13.01B
Stockholders Equity15.02B14.38B13.01B12.62B13.78B13.40B
Cash Flow
Free Cash Flow521.70M4.34B2.77B-1.10B-3.48B-4.48B
Operating Cash Flow1.29B5.88B4.04B2.51M-1.40B-3.54B
Investing Cash Flow-603.40M-1.51B-4.70B-101.11M1.40B-6.03B
Financing Cash Flow-813.20M-3.85B1.15B442.61M48.69M9.27B

FSN E-Commerce Ventures Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
₹1.50T61.260.22%16.92%14.21%
64
Neutral
₹982.39B384.2127.41%220.61%
59
Neutral
₹59.29B50.600.35%13.94%
58
Neutral
₹484.64B54.1419.83%26.74%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
52
Neutral
₹41.82B-119.860.16%9.62%-293.21%
42
Neutral
₹62.42B-7.94-27.21%-53.22%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:NYKAA
FSN E-Commerce Ventures Ltd.
342.25
103.15
43.14%
IN:ABFRL
Aditya Birla Fashion and Retail Limited
50.92
-37.43
-42.37%
IN:ARVINDFASN
Arvind Fashions Ltd.
453.20
-98.17
-17.80%
IN:SHOPERSTOP
Shoppers Stop Limited
379.65
-154.10
-28.87%
IN:TRENT
Trent Limited
2,789.70
-624.42
-18.29%
IN:VMM
Vishal Mega Mart Ltd.
103.30
-49.25
-32.28%

FSN E-Commerce Ventures Ltd. Corporate Events

FSN E-Commerce Ventures Allots 226,200 Shares Under Employee Stock Option Plan
Aug 9, 2026
FSN E-Commerce Ventures Ltd. has allotted 226,200 new equity shares following the exercise of vested stock options by its employees under the company’s employee stock option schemes. With this allotment approved by the Nomination and Remuner...
Nykaa Publishes Q1 FY27 Investor Presentation for Market Participants
Aug 4, 2026
FSN E-Commerce Ventures Ltd. has released its investor presentation for the quarter ended June 30, 2026, in line with Indian listing regulations and ahead of an analyst and institutional investor call scheduled for August 4, 2026. The presentation...
Nykaa Publishes AGM and E-Voting Details for Shareholders
Aug 2, 2026
FSN E-Commerce Ventures Ltd. has notified the stock exchanges that it has published shareholder information related to its 14th Annual General Meeting in multiple newspapers. The notices include details and instructions for remote e-voting and ele...
Nykaa posts strong Q1 FY2027 growth led by surging fashion and robust beauty
Jul 5, 2026
Nykaa reported a strong start to FY2027, with consolidated gross merchandise value and net sales value for the first quarter expected to grow in the early thirties year-on-year. Consolidated net revenue is projected to accelerate to near thirties,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 23, 2026