Nykaa’s parent company, FSN E‑Commerce Ventures, shared its Q3 FY2026 outlook, and the news pushed its shares up nearly 3% in early trade.
Key Takeaways from the Q3 Update
- Overall market value (GMV) and net sales (NSV) are expected to grow in the high‑20% range.
- Beauty sales should rise at the fastest pace in six quarters, hitting the late‑20% growth band.
- Fashion sales are set to grow in the mid‑20% range, continuing a recent recovery.
- Net revenue growth for the whole company is projected at the upper mid‑20% level.
Beauty Vertical – Strongest Quarter Yet
The beauty side of Nykaa is forecast to deliver NSV growth in the high‑20% range, the best performance in the last six quarters. This comes in a seasonally strong period, making Q3 the biggest quarter ever for the beauty business in absolute terms.
Growth was broad‑based across all product lines. The company highlighted three drivers:
- House of Nykaa brands outperforming expectations.
- A successful "Pink Friday" sale that attracted many shoppers.
- Strong acquisition of new customers.
Because of these factors, net revenue from beauty is expected to rise at the upper end of the mid‑20% range.
Fashion Vertical – Continuing the Comeback
Fashion is also on an upward trajectory, with NSV growth projected in the mid‑20% range. The bounce back is driven by:
- Solid performance of Nykaa’s core fashion platform.
- New brand additions expanding the catalogue.
- Continued inflow of new fashion shoppers.
However, net revenue growth for fashion is expected to be in the high teens, a bit lower than sales growth, due to lower earnings from content, marketing and ongoing optimisation of fashion‑owned brands.
Financial Highlights
- Q2 net profit jumped 243% year‑on‑year to ₹34 crore.
- Revenue from operations rose 25% to ₹2,346 crore.
- EBITDA margin improved to 6.8% (up 125 basis points).
- Profit‑after‑tax margin doubled to 1.4%.
Share Performance
Nykaa’s stock has risen almost 60% so far in 2025, reflecting investor optimism around the strong Q3 outlook.
What This Means for Retail Investors
The company’s guidance suggests that both beauty and fashion segments are gaining momentum, which could translate into higher earnings and potentially lift the share price further. Keep an eye on the actual quarterly results to see if the company meets these expectations.
Disclaimer
Remember, this is just an overview of the company’s own outlook, not a prediction of future stock moves. Do your own research and consider your risk tolerance before making any investment decisions.