Platforms

Anand Rathi starts Nykaa at Buy with ₹400 target

Brokerage cites record $1 billion FY26 revenue and premiumisation runway; fashion turnaround remains the key merchant watchpoint.

Rhea Kapoor, Platforms & SaaS·23 October 2026·4 min read

Glass bottles and compact cases arranged on a clean retail shelf

Anand Rathi on 19-20 October initiated coverage on Nykaa with a Buy rating and ₹400 target price, valuing the stock at 50 times FY29e EBITDA. The note highlighted a significant turnaround in FY26 that delivered record revenue of approximately $1 billion after two years of post-listing volatility.

The dual-engine model rests on premiumisation in beauty and personal care plus structural improvement in fashion economics. Nykaa holds category leadership in beauty with about 20 million MAUs and a portfolio of premium and exclusive brand partnerships. House of Nykaa brands and improving unit economics in fashion support the premium multiple versus retail peers.

A beauty brand seller on the platform now sees higher average order values from the premium mix, reducing reliance on heavy discounting. Fashion merchants still face return-rate pressure but benefit from the platform’s logistics density during festive peaks.

Nykaa should trade at a premium for its growth runway and category leadership.

Pure-play D2C beauty labels and offline chemists lose share as Nykaa’s curated assortment and own brands capture digital-native spend. Horizontal marketplaces feel less direct heat in beauty but compete for the same festive wallet.

Watch the upcoming festive GMV print and the next quarterly filing for fashion contribution-margin progress against the ₹400 target thesis.

Filed under Platforms·Rhea Kapoor

Readers' mark

Be the first to mark this story.

Ask the desk

What does this mean for the shop floor?

Signed-in readers can put a question to the desk. We file a short take on this story — not a press release.

Also in this book

Assorted sealed consumer packs and bottles arranged on plain metal warehouse shelving under cool lights

Opinion · Platforms

Why Blinkit’s no-private-label stance reshapes brand maths

Eternal’s decision to stay clear of own brands on Blinkit keeps the platform open for third-party labels just as festive ad rates climb and store density rises.

The Desk · 22 Oct · 4 min read

Stacked crates of packaged groceries inside a compact warehouse bay

Platforms

Blinkit leads quick commerce with 94.4% product availability

Bernstein audit across Mumbai, Gurugram and Bengaluru puts Eternal ahead of Flipkart Minutes, Instamart and Zepto on in-stock rates.

Rhea Kapoor · 15 Oct · 4 min read

Stacks of polybags and hanging garment samples on a metal rack in a small warehouse corner

Platforms

Flipkart fashion seller base jumps 77% after zero-commission

New listings more than double as Big Billion Days begin, giving smaller apparel makers direct festive access.

Rhea Kapoor · 9 Oct · 4 min read