Nykaa’s premiumisation-led Q1 growth lifts earnings outlook, but valuation keeps Motilal Oswal neutral
Motilal Oswal raised Nykaa’s FY27E and FY28E earnings estimates by about 14.8% and 17.8%, respectively, citing stronger fashion growth and margin prospects. The brokerage retained a Neutral rating and Rs 370 target price, flagging valuation concerns.
Nykaa reported strong Q1 FY27 growth in beauty, personal care and fashion. Motilal Oswal raised FY27-28 earnings estimates on stronger fashion growth and margin prospects but retained a Neutral rating and Rs 370 target due to valuation concerns.
Why this matters
The update follows Nykaa’s Q1FY27 profit jump of 226% on beauty, fashion and own brands, its ₹32 crore acquisition of 51% of Aminu, and HDFC Securities’ cautious Q1 earnings stance.
Retail-company signals are accelerating, up +207014% QoQ.