Nykaa shares rise over 4% as firm sees Q3 net revenue growth higher than mid-20s

Shares rise with Nykaa's projection of net rev growth higher than mid-twenties

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26 Aug, 2025 12:21

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The share prices of FSN E-Commerce Ventures Ltd., parent company of online and physical fashion retailer Nykaa, rose 4 percent on January 6 following the company's business update for the December quarter.

At 10:15 am on January 6, Nykaa's shares were trading 4 percent higher at Rs 175.11 apiece.

As per an exchange filing on January 5, the company expects its net revenue to grow higher than the "mid-twenties," even as online fashion demand continues to remain subdued. Despite the subdued demand, the company said it remains confident of its long-term opportunity.

Nykaa's revenue growth projection is higher than the consolidated Gross Merchandise Value (GMV) growth during this period, indicating a positive trend in the GMV to net revenue transition. The beauty vertical of Nykaa has seen growth accelerated in Q3 compared to the previous quarters, and its net revenue growth is also likely to be higher than the "mid-twenties." Its GMV growth is likely to be in the "low thirties," indicating strong momentum in all of Nykaa's beauty businesses - e-commerce platform, retail stores, owned brands, and eB2B distribution.

Nykaa's eB2B distribution business, "Superstore by Nykaa," now accounts for 8 percent of the beauty businesses' GMV, compared to 7 percent a year earlier and now services around 2.6 lakh transacting retailers across 1,100-plus cities. The company's fashion division is likely to deliver net revenue growth of around 20 percent, while the Net Sales Value (NSV) growth may be in the low-to-mid-teens, indicating continuing strong growth in content, marketing, and service-related income.