Nykaa shares rise 3% as Q1 update signals nearly 30% revenue growth, GMV

Shares of FSN E-Commerce Ventures, the parent company of beauty and fashion retailer Nykaa, gained 3% to Rs 318 on the BSE on Monday after it projected nearly 30% year-on-year growth in consolidated net revenue for the June quarter, driven by a sharp improvement in its fashion business and sustained momentum in beauty.

In its quarterly business update filed with the stock exchanges, the company said consolidated gross merchandise value (GMV) and net sales value are expected to grow in the early thirties on a year-on-year (YoY) basis during Q1 FY27.

Nykaa segment-wise performance

The standout performance came from the fashion segment, which has faced pressure over the past several quarters due to weak discretionary demand and elevated customer acquisition costs. Nykaa expects the business to deliver net sales value growth of around 55%, representing a sharp acceleration from recent quarters.

Net revenue growth in the fashion business is also expected to accelerate to nearly 50%, marking a multi-quarter high. According to the company, the improvement was supported by stronger demand across women’s, men’s, kids’ and home categories, a wider brand portfolio and marketing investments made over the past few quarters. It also said its partnership with Nike has delivered encouraging early results.

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The update points to an early recovery in Nykaa Fashion, which has weighed on the company’s overall profitability and growth in recent quarters. The company has been repositioning the business around premium and curated offerings while working to improve the conversion of gross merchandise value into net sales value by reducing leakages arising from returns and cancellations.

Nykaa’s core beauty business is expected to post net sales value and net revenue growth in the late twenties. The company said net revenue growth is likely to be slightly lower than net sales value growth due to the higher contribution from House of Nykaa brands, which do not carry a marketing income component.

The omnichannel beauty business continued to maintain the faster growth seen in the March quarter. Retail sales increased by about 15%, supported by higher same-store sales as well as an expansion in the store network. Nykaa’s total store count rose to 324 as of June 30, 2026, from 313 at the end of March 2026. Also Read | Buy, Sell or Hold: Morgan Stanley raises target price on NYKAA; Elara Capital maintains buy on Devyani Int

The company also said House of Nykaa brands continued to register strong growth, led by Kay Beauty, Nykaa Cosmetics and Dot & Key. It clarified that the quarterly update does not constitute its financial results or earnings guidance.

Nykaa share price performance

Shares of the company have gained 15% over the past six months and more than 50% in the last one year.

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