06 January 2025, Mumbai
Parent entity of Nykaa, FSN E-Commerce Ventures has issued a robust operational update for Q3, FY26, projecting consolidated Gross Merchandise Value (GMV) and Net Sales Value (NSV) growth in the late twenties.
This performance signals a strategic acceleration in the company’s core business units, with consolidated net revenue expected to settle at the upper end of the mid-twenties.
The beauty segment remains the primary engine of this expansion, eyeing its strongest quarterly growth in eighteen months, boosted by a successful ‘Pink Friday’ sale and an influx of premium consumer acquisitions.
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Vertical disparity and margin optimization in fashion
While the beauty vertical anticipates record-breaking NSV growth in the late twenties, Nykaa Fashion is navigating a more complex trajectory.
The segment expects mid-twenties NSV growth, yet net revenue is projected to remain in the late teens.
This disconnect stems from deliberate channel optimization of in-house labels and a temporary contraction in marketing and content income.
Despite these adjustments, the fashion business continues its recovery, supported by a 37 per cent Y-o-Y GMV growth reported in the previous quarter and a growing portfolio of global labels like H&M and GAP.
Omnichannel dominance and physical retail scaling
Nykaa’s 2026 outlook is anchored in its ‘omnichannel’ moat, which now encompasses over 265 physical beauty destinations across 90 cities.
The company added 19 new stores in the second quarter alone, focusing on high-productivity formats that deliver superior revenue per square foot.
According to Falguni Nayar, CEO, the focus is now on deepening premiumization through ‘House of Nykaa’ brands like Dot & Key, which recently achieved a Rs 1,500 crore annualized GMV run rate.
As the platform scales its rapid delivery model, ‘Nykaa Now,’ it aims to fulfill the growing demand for convenience without compromising its high-end assortment.
Nykaa is India’s premier omnichannel lifestyle retailer, specializing in beauty, wellness, and fashion across premium and luxury segments. With a cumulative customer base of 49 million, the firm is executing a 2026 strategy centered on physical store expansion and high-margin private labels.
Historically established in 2012 as a digital-first platform, Nykaa now commands a multi-billion dollar GMV, maintaining a dominant position in India's evolving e-commerce landscape.
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