despite facing geopolitical challenges, Nykaa experiences robust growth in Q1
In a significant milestone, FSN E-Commerce Ventures Limited, the parent company of popular online retail platform Nykaa, has announced impressive growth figures for the first quarter of the financial year 2026. The company's Gross Merchandise Value (GMV) has crossed mid-twenties, marking a consistent upward trend over multiple quarters.
The beauty vertical of Nykaa has shown a particularly strong performance, with GMV growth in the higher mid-twenties, signifying a significant uptick from previous quarters. Meanwhile, the fashion vertical has also seen a robust growth, with its GMV expected to reach mid-twenties, indicating a notable improvement.
Despite geopolitical disruptions affecting the flagship sale period, Nykaa's growth has been driven by solid results across all its business segments. The company's net revenue growth for Q1 FY2026 is expected at the lower end of mid-twenties percent overall. The beauty vertical's net revenue growth is expected to remain in mid-twenties, maintaining a similar pace as previous quarters, while the fashion vertical's net revenue growth is projected to improve to mid-teens.
Nykaa currently serves 42 million customers through its online platforms and operates 237 offline beauty destinations. The company has also expanded its presence to the Middle East through its omnichannel beauty platform, Nysaa.
Morgan Stanley, a leading global financial services firm, maintains its 'Overweight' rating on Nykaa, with a target price of ₹225. The firm also highlights Nykaa's expected net revenue growth in the mid-twenties for beauty and personal care.
In a separate development, the Banga family sold 2.1% stake in Nykaa for ₹1,213 crore.
This sustained strong growth in GMV, outpacing net revenue growth, is typical as GMV includes total sales value before deductions. The company's private label portfolio continues its accelerated growth trajectory with strong performance from both home-grown and acquired brands.
In summary, FSN E-Commerce Ventures Limited has reported the following growth rates for Q1 FY2026:
| Metric | Growth Rate for Q1 FY2026 | |-------------------|------------------------------------| | GMV Growth | Higher mid-twenties % (above ~25%) | | Net Revenue Growth | Low to mid-twenties % (~20-25%) |
These figures underscore Nykaa's resilience and its continued growth trajectory, despite the challenges posed by geopolitical tensions.
- The impressive growth of FSN E-Commerce Ventures Limited, the parent company of Nykaa, is being analyzed by various financial institutions, with Morgan Stanley maintaining an 'Overweight' rating on Nykaa and setting a target price of ₹225.
- The beauty vertical of Nykaa has shown a remarkable growth, with GMV expected to cross mid-twenties and net revenue growth remaining in mid-twenties.
- The fashion vertical has also demonstrated a robust growth, with its GMV projected to reach mid-twenties and net revenue growth projected to improve to mid-teens.
- The company's technology-driven business model, serving 42 million customers through its online platforms and operating 237 offline beauty destinations, has contributed to this growth.
- In addition to its strong online presence, Nykaa has expanded its operations to the Middle East through its omnichannel beauty platform, Nysaa.
- It's worth noting that the sustained strong growth in GMV, outpacing net revenue growth, is typical as GMV includes total sales value before deductions, and the company's private label portfolio continues its accelerated growth trajectory with strong performance from both home-grown and acquired brands.
