Nykaa, the prominent beauty and fashion retailer, is set to report its highest quarterly revenue growth in three years for Q4 FY26, driven by robust performance across its beauty and fashion segments and significant offline expansion.
Key Points
- Nykaa expects its Q4 FY26 consolidated net revenue to grow in the high 20 per cent range year-on-year, the highest in three years.
- The strong performance is attributed to accelerated growth in the fashion vertical and sustained momentum in the beauty segment.
- Consolidated gross merchandise value (GMV) growth is projected in the late 20 per cent, with net sales value (NSV) growth estimated in the early 30 per cent range.
- The beauty business saw high 20 per cent growth in GMV, NSV, and net revenue due to better funnel conversion and omnichannel demand.
- Nykaa aggressively expanded its offline presence, adding 26 new stores and 11 Kiehl's store integrations, bringing the total to 313.
FSN E-Commerce Ventures, the parent company of beauty and fashion retailer Nykaa, expects its consolidated net revenue for the fourth quarter of 2025-26 (FY26) to grow in the high 20 per cent range year-on-year (Y-o-Y), marking its highest growth in the past 12 quarters.
The firm's stock rose as much as 3 per cent in early trading hours after the business update. It pared some gains to close 2.72 per cent up at ~252.65 per share.
Performance Drivers
"This strong performance came on the back of acceleration in fashion vertical, along with sustained strong performance of beauty vertical," the company said in its provisional update filed with exchanges on Monday.
Consolidated gross merchandise value (GMV) growth is expected to be in the late 20 per cent, while net sales value (NSV) growth is estimated to be higher in the early 30 per cent range, it said.
The update is, however, subject to an audit.
The performance was driven by a strong showing in both its core beauty segment and fashion vertical.
The beauty business saw steady momentum, with GMV, NSV and net revenue for the segment projected to grow in the high 20 per cent range.
This was attributed to better funnel conversion, robust omnichannel demand, and traction in its in-house brands.
Fashion Vertical Turnaround and Offline Expansion
The fashion vertical saw a notable turnaround. Its GMV growth is expected in the high 20 per cent range, while NSV growth is projected to be in the early 40 per cent range.
Net revenue growth for the segment is estimated in the late 30 per cent range, supported by improved customer acquisition, better assortment, and early traction from partnerships such as Nike.
Nykaa also expanded its offline presence aggressively during the quarter, adding 26 new stores, along with 11 Kiehl's store integrations, marking its highest-ever quarterly store additions.
The total store count now stands at 313. While the company remains cautious about geopolitical developments in West Asia, the impact on business has been negligible so far, with the region contributing less than 1 per cent to overall revenue, it said.
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