FSN E-Commerce Ventures, the parent company of Nykaa, has received a "BUY" recommendation from Geojit Financial Services, with a target price of Rs. 198.

In Q2 FY25, the company reported a 24.4% year-on-year increase in revenue, reaching Rs. 1,875 crore. The growth was primarily driven by the Beauty and Personal Care (BPC) segment, which saw a remarkable 33.2% increase in revenue to Rs. 1,703 crore. The BPC segment's gross merchandise value (GMV) also rose by 29% year-on-year to Rs. 2,783 crore.

The fashion segment experienced slower growth, with a 27.3% increase in revenue to Rs. 166 crore and a 10% year-on-year growth in GMV to Rs. 863 crore. Total beauty segment orders increased by 24% to 12.9 million units, while fashion orders declined by 4% to 1.8 million units.

The company's EBITDA improved by 28.6% year-on-year to Rs. 104 crore, with a margin increase to 5.5%. Profit after tax surged by 44.7% year-on-year to Rs. 13 crore, attributed to strong revenue growth and operational efficiencies.