Nykaa shares rise 3% after Q1 business update

Synopsis

Nykaa shares experienced a rise following the release of its Q1 FY26 business update. The company anticipates consolidated net revenue growth in the lower end of the mid-twenties range. Gross Merchandise Value growth is expected to surpass this figure. The Beauty segment projects GMV growth in the higher mid-twenties.

Shares of Nykaa (FSN E-Commerce Ventures) rose nearly 3% to Rs 203 on the BSE in Monday's trade, after the company shared its Q1 FY26 business update on Sunday.

Nykaa said it has started FY26 on a strong note, with consolidated net revenue growth for the first quarter expected to be at the lower end of the mid-twenties range. Gross merchandise value (GMV) growth is expected to surpass this, crossing the mid-twenties, indicating sustained momentum across recent quarters.

Beauty Segment

The Beauty vertical is expected to post GMV growth in the higher mid-twenties, despite softer consumer sentiment during its flagship sale period, which was impacted by geopolitical tensions.

The company said that the growth was driven by robust performance across its ecommerce platform, retail stores, eB2B distribution, and the House of Nykaa brands. The House of Nykaa portfolio, which includes both home-grown and acquired brands, continued its accelerated growth trajectory.

As a result, net revenue in the Beauty vertical is also expected to grow in the mid-twenties, consistent with previous quarters.

Fashion Segment

The Fashion vertical is projected to deliver GMV growth in the mid-twenties, marking a notable improvement over recent quarters. This performance was supported by increased traction on the core platform, an expanding product assortment, and strong customer acquisition.

While net revenue growth for the Fashion vertical is expected to improve sequentially to the mid-teens, it will likely remain lower than the GMV growth rate.

Nykaa shares target price

As per Trendlyne data, the average target price of the stock is Rs 205, which indicates an upside potential of 1% from the current market prices. The consensus recommendation from 5 analysts for the stock is a 'Hold'.

Nykaa shares have gained 23% YTD, and are up 44% over the past two years. The company currently has a market capitalisation of Rs 57,976 crore.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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