Nykaa Anticipates Steady Growth Amidst Geopolitical Challenges

Nykaa, a leading fashion and beauty retailer, projects growth in Q1 FY26 despite geopolitical tensions impacting sentiment. The company anticipates a consolidated net revenue increase in the lower mid-20s percentage and higher growth in its Beauty vertical's GMV, driven by strong performance across all business segments.

Nykaa, the prominent fashion and beauty retailer, is forecasting an upward trend in its consolidated net revenue for the first quarter of FY26, pointing to figures at the lower end of the mid-20s percentage range. This prediction, despite geopolitical tensions leading to a subdued sentiment, was outlined by its parent company, FSN E-Commerce Ventures Ltd, in a recent regulatory submission.

The April to June quarter was marked by a dip in business during the company's flagship sale, attributed to global political challenges. Nonetheless, Nykaa expects its Beauty sector to achieve Gross Merchandise Value (GMV) growth in the higher mid-twenties, showcasing sustained momentum across several quarters.

Strong performance was noted across Nykaa's various channels, including the e-commerce platform, physical stores, eB2B distribution, and their own brand offerings. The Fashion division is also set to improve, with GMV growth forecasted in the mid-twenties, though net revenue growth is projected slightly lower, in the mid-teens. FSN E-Commerce Ventures also reported a significant net profit increase in the recent quarter.

(With inputs from agencies.)