Shares of FSN E-Commerce Ventures Ltd., the parent company of Nykaa, rose over 2% to ₹202.4 on Monday, July 7, following a Q1 business update that indicates stable growth momentum despite external challenges. The company projects consolidated revenue growth at the lower end of the mid-20% range, while Gross Merchandise Value (GMV) is expected to outpace revenue growth across key segments.
Nykaa’s beauty business, its largest segment, is estimated to post GMV growth in the higher mid-20s, despite consumer sentiment being dampened by geopolitical tensions during a flagship sales event. The fashion segment is also showing signs of recovery, with GMV expected to grow in the mid-20s and revenue in the mid-teens, improving on a sequential basis.
Across online, offline, eB2B, and its House of Nykaa portfolio, the company continues to report strong performance, positioning itself as a resilient player in the retail and beauty space.
Brokerage outlooks remain mixed:
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Nomura retains a Neutral rating with a ₹216 target, citing slightly softer-than-expected revenue trends.
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CLSA maintains an Outperform call with a ₹229 target, appreciating the stronger GMV growth, particularly in fashion.
Nykaa shares have gained 21% year-to-date.
Nykaa’s Q1 FY26 business update reveals mid-20% GMV growth across its beauty and fashion verticals, suggesting robust operational performance despite headwinds. Beauty revenue is projected to grow in the mid-20s, while fashion revenue is set to rise in the mid-teens. Brokerages remain cautiously optimistic, with Nomura maintaining a Neutral stance and CLSA recommending an Outperform rating.
