Shares of beauty ecommerce major Nykaa surged 2.5% to INR 203.05 on the BSE today after the company said it expects its consolidated revenue growth to be in mid-twenties YoY in the first quarter of FY26.
In its quarterly revenue update, the beauty and personal care (BPC) company said that FY26 started on a “good note” and it expects its revenue growth to be “at the lower end of mid-twenties”. Gross merchandise value (GMV) growth is projected to cross mid-twenties.
Nykaa said that geopolitical tensions led to softer sentiment during its Q1 Flagship Sale, causing some loss of business for its beauty vertical. Despite this, it expects the vertical to deliver GMV growth in the higher mid-twenties.
“The strong growth came on the back of solid performance across all businesses including ecommerce platform, retail stores, eB2B distribution and the House of Nykaa portfolio. House of Nykaa brands continued its accelerated growth trajectory with strong performance of home-grown as well as acquired brands,” Nykaa said.
The fashion vertical, which has relatively been a laggard, is projected to see its net revenue grow in the mid-teens sequentially. However, the Falguni Nayar-led company said that Nykaa’s fashion business saw a strong improvement in Q1 over the previous quarters, and its GMV will increase in mid-twenties.
At 11:00 AM, shares of Nykaa were trading 2.4% higher at INR 202.75 on the BSE. Following the Q1 update, brokerage Morgan Stanley maintained its overweight rating on the stock with a price target of INR 225.
(The story will be updated soon)
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