July 7, 2025: Nykaa Share Price – Shares of FSN E-Commerce Ventures Ltd., the parent company of Nykaa, rose over 2% to ₹202.40 in early trade on Monday after the company issued a positive business update for Q1 FY26, reinforcing confidence in its beauty and fashion segments despite macroeconomic headwinds.
Nykaa reported consolidated revenue growth at the lower end of the mid-20% range, while its Gross Merchandise Value (GMV) is expected to surpass that, marking continued robust performance. The company attributed its resilience to sustained demand across online, offline retail, eB2B, and its House of Nykaa portfolio.
Segment Performance Highlights
- Beauty Segment: Nykaa’s core beauty business is projected to post GMV growth in the higher mid-20% range, despite being affected by geopolitical tensions that hampered consumer sentiment during a key sales event. Revenue growth in this vertical is expected to remain in the mid-20% range, maintaining pace with previous quarters.
- Fashion Segment: After subdued performance in recent quarters, the fashion vertical seems to be gaining momentum. GMV growth here is also expected in the mid-20% range, supported by a broader product range, improved platform performance, and new customer acquisitions. Fashion revenue is estimated to grow in the mid-teens, marking a sequential uptick.
- House of Nykaa Brands: The company’s proprietary and acquired labels under the House of Nykaa banner continue to be strong growth drivers, contributing significantly across multiple formats.
Brokerage Reactions
- Nomura retained a Neutral rating on Nykaa with a target price of ₹216, suggesting an upside of about 9%. The brokerage anticipates 23% consolidated revenue growth for Q1 FY26, in line with estimates but slightly under full-year expectations. It projects EBITDA margins of 7.5% in FY26 and 8.7% in FY27.
- CLSA maintained an Outperform rating with a target price of ₹229. CLSA noted that Nykaa’s GMV growth aligned with expectations, while revenue fell slightly short due to the underperformance of the beauty segment. The brokerage also revised up its forecast for the fashion segment, citing stronger-than-expected mid-teens revenue growth.
At around 9:35 AM, Nykaa shares were trading at ₹200, up 1%. The stock has gained 21% year-to-date, reflecting investor optimism about its improving fundamentals and segmental strength.