FSN E-Commerce Ventures, the parent entity of Nykaa, has emerged as a top performer in the consumer internet sector, with its stock price surging 64% over the past year. As of late February 2026, the shares are trading near **₹268**, maintaining momentum after hitting a 52-week high of **₹285.60**. This rally is anchored by a significant shift in the company’s financial health. In the third quarter of fiscal year 2026, Nykaa reported a consolidated net profit of **₹63.31 crore**, representing a 143% jump compared to the same period last year. Revenue from operations also saw a robust climb of 27%, reaching **₹2,873 crore**. The Beauty and Personal Care (BPC) segment remains the primary engine of growth, contributing over 90% of total revenue. Strategic focus on premiumization and a high-frequency customer base has driven this vertical to scale, with premium users reportedly spending nearly nine times more than the average shopper. Operational efficiency has seen marked improvement, with EBITDA margins expanding to 8% from 6.2% a year prior. This gains stem from better cost management and the rising contribution of "House of Nykaa" owned brands, which offer higher margins than third-party labels. The Fashion vertical, while still smaller, is showing signs of stabilization. Management has targeted a breakeven for this segment by the end of fiscal 2026. Gross Merchandise Value (GMV) across all platforms grew 28% year-on-year to **₹5,795 crore**, supported by an expanding offline footprint of over 270 stores. Market analysts remain divided on the stock’s immediate future. While some see the recent rally as a long-overdue re-rating driven by structural profitability, others point to a high price-to-earnings (P/E) ratio as a sign of expensive valuation. Consensus price targets hover around **₹289**, suggesting a potential 10% upside from current levels. Traders have noted a sharp increase in open interest in the derivatives segment, indicating high market activity and shifting directional bets. Short-term technical indicators show minor weakness as the stock trades below its 5-day moving average, though it remains firmly above its 200-day long-term trend line. The company is also pivoting toward speed to stay competitive. The "Nykaa Now" rapid-delivery service is active in major cities, fulfilling some orders in under 10 minutes. This move aims to capture impulse-led purchases and increase order frequency among its 52 million active customers.