Nykaa is expected to deliver robust financial performance in its third quarter results, according to earnings estimates released by ICICI Securities for the October-December period. The brokerage house has projected significant growth across key financial metrics, indicating strong momentum for the beauty and fashion retailer.

Financial Performance Projections

ICICI Securities' estimates paint a positive picture for Nykaa's Q3 performance, with substantial improvements expected across profitability and revenue metrics.

Revenue Growth Outlook

The brokerage expects Nykaa's net sales to reach ₹2,870 crore for the quarter, representing a 26.6% year-on-year increase. The sequential quarter growth of 22.3% suggests sustained business momentum and strong demand across the company's product categories. This revenue projection indicates continued market expansion and customer acquisition efforts bearing fruit.

Profitability Surge

The most striking projection is the expected surge in net profit to ₹53.7 crore, marking a remarkable 105.7% year-on-year growth. The 56% quarter-on-quarter increase further demonstrates the company's improving profitability trajectory. This substantial profit growth suggests enhanced operational efficiency and better margin management.

Operational Efficiency Indicators

Earnings before interest, tax, depreciation and amortisation (EBITDA) are projected to rise significantly to ₹195.2 crore, reflecting a 38.6% year-on-year increase. The 22.8% quarter-on-quarter growth in EBITDA indicates strong operational performance and effective cost management strategies. These estimates suggest the company is successfully scaling its operations while maintaining healthy margins across its business segments.

Nykaa Ltd has formed a triple top pattern on its 4-hour chart after a sustained upward move in recent trading sessions, signaling possible trend exhaustion and a potential bearish reversal. The formation indicates weakening buying momentum and suggests a possible shift from uptrend to downtrend.

Triple Top Pattern Formation

The triple top is a classic bearish reversal pattern characterized by three peaks formed at roughly the same price level, separated by moderate pullbacks. This technical formation indicates that buying momentum is weakening near resistance levels.

On Thursday, the stock broke below the ₹240 support neckline after forming the triple top pattern. This breakout, supported by sustained selling volumes, confirms near-term bearish momentum.

Technical Indicator Analysis

Multiple technical indicators support the bearish outlook for the stock:

Key Indicators

The RSI indicates bearish momentum as it fell from 31 in the previous trading session to 29.00 on Thursday, confirming trend continuation. The MACD shows the orange signal line crossing above the blue MACD line with the histogram turning red, indicating bearish momentum.

Stock Performance Overview

Nykaa, founded in 2012 as a digital-first beauty company, has grown into a leading consumer-focused platform offering beauty, fashion, and B2B solutions. The company serves over 49 million customers through online channels and 265 offline stores.

Market Implications

The triple top formation suggests potential for near-term downside pressure. For confirmation of the bearish reversal, traders typically look for:

• Decisive close below the neckline support
• Higher trading volumes accompanying the breakdown
• Reduced risk of false breakdown signals

The immediate downside targets are typically the nearest support levels below the neckline, where traders may look to book profits or reassess positions. The combination of technical pattern formation and supporting indicators creates a comprehensive bearish outlook for the near term.