Nykaa expects nearly 30% net revenue growth in Q1 on strong fashion sales
Nykaa attributed the growth of its core platform business to a wider brand assortment and recent marketing investments, which it said translated into new customer acquisitions.
FSN E-Commerce Ventures, the owner of the Nykaa brand, has projected a consolidated net revenue growth of nearly 30% for the first quarter of FY2026-27, to be led by a sharp acceleration in its fashion business.
According to a regulatory filing, the company expects its consolidated gross merchandise value (GMV) and net sales value (NSV) to grow in the "early thirties" on a year-on-year basis for the quarter ended June 30, 2026.
"Nykaa’s Fashion vertical has started FY2027 on a notably stronger footing, with NSV growth expected to be in mid-fifties, marking a sharp acceleration from previous quarters. The fashion business continues to see improvement in GMV to NSV funnel, supported by reduction in leakages," the company said.
Nykaa attributed the growth of its core platform business to a wider brand assortment and recent marketing investments, which it said translated into new customer acquisitions. Meanwhile, the flagship beauty segment is projected to grow in the "late twenties".
The company's physical store count stood at 324 at the end of June.
Nykaa reported a multifold jump in consolidated net profit to Rs 78.75 crore for the March quarter of FY26, mainly driven by sales in the beauty segment and narrowing of losses in the fashion vertical.
Nykaa's revenue from operations increased by about 28% to Rs 2,648.17 crore during the quarter.
For the year ended March 31, 2026, Nykaa's net profit surged nearly threefold to Rs 203.94 crore from Rs 72.07 crore in fiscal year (FY) 2025. The company's annual revenue from operations grew 26% to Rs 10,022.35 crore during the same period.
The upbeat first-quarter outlook comes weeks after Nykaa outlined its longer-term growth strategy at its Investor Day, where it said it aims to deliver 2-3 times revenue growth and 4-5 times EBITDA growth by FY2030. The company also plans to expand its offline footprint to more than 600 stores while scaling its customer base to around 100 million users, betting on premiumisation, omnichannel retail and its portfolio of owned brands.
The latest development was also positively received by investors, with Nykaa shares gaining as much as 3% in early trade on Monday after the company projected its revenue growth for the June quarter, driven by a sharp recovery in its fashion business and continued momentum in beauty.
With inputs from PTI