FSN E-Commerce Ventures Ltd., the parent of beauty and fashion retailer Nykaa, expects consolidated net revenue for the first quarter of FY26 to grow in the mid-20% range, according to a regulatory filing. The uptick is powered by continued strength in its beauty segment, even as its fashion business shows early signs of a turnaround.
Gross merchandise value (GMV) in the beauty vertical is projected to rise in the high-20% range, supported by broad-based growth across Nykaa’s online platform, physical retail stores, eB2B distribution, and its expanding portfolio of in-house and exclusive brands under the “House of Nykaa” umbrella.
The company noted that this performance came despite softer consumer sentiment during its Q1 flagship sale event, which was impacted by geopolitical tensions along the Indo-Pak border.
“The beauty vertical’s net revenue is expected to grow in the mid-20% range, in line with the recent trend,” the company said. Beauty and personal care remains Nykaa’s most profitable segment, driven by repeat purchases, higher-margin private labels, and early traction in express delivery via its Nykaa Now initiative.
Meanwhile, the fashion segment—long seen as a drag on consolidated margins—is gaining ground. GMV for the vertical is expected to grow in the mid-20% range, aided by improved traction in the core platform business, wider brand assortment, and stronger customer acquisition. Although net revenue growth is projected in the mid-teens, lower than GMV, it marks a sequential improvement.
Management has outlined plans to bring the fashion business to EBITDA breakeven by FY26, as it pivots toward premium positioning and tighter discounting.
Nykaa also continues to deepen its omnichannel footprint. The company added over 50 new stores in FY25—its largest offline expansion to date—giving it a physical presence across more than 110 cities. The integration of online and offline channels aims to focus on brand-building over deep discounting and is central to the firm’s next phase of growth.
Shares of FSN E-Commerce have risen over 20% year-to-date. At 10:50 AM, its stocks were trading at Rs 202.25 apiece on the BSE.
Edited by Suman Singh
