On Monday, 7th July, shares of FSN E-Commerce Ventures Ltd, the parent of Nykaa, gained 1.18% on the NSE to trade at ₹200.56, up ₹2.33 from the previous close. The stock was in focus after the company released its first-quarter business update, signalling stable growth momentum despite external challenges.
For Q1 FY26, Nykaa expects its consolidated revenue to grow at the lower end of the mid-20 percent range, while its gross merchandise value (GMV) growth is projected to exceed that level, marking another strong quarter. The beauty segment — its largest vertical — is estimated to post GMV growth in the higher mid-twenties, although sales during the period were impacted by geopolitical tensions that affected consumer sentiment during a key flagship event.
The fashion segment showed notable improvement, with GMV expected to grow in the mid-twenties and revenue growth in the mid-teens, aided by demand on its core platform, expanded product offerings, and steady customer additions. Across formats — including online, offline retail, eB2B, and its proprietary House of Nykaa brands — the company reported healthy performance. The House of Nykaa portfolio continued to strengthen its role as a key driver of growth.
Brokerage views remain mixed. Nomura has maintained a ‘Neutral’ rating on Nykaa with a target price of ₹216 per share, citing expected consolidated revenue growth of 23% for Q1 FY26 and EBITDA margins of 7.5% for the full year. CLSA, on the other hand, reiterated its ‘Outperform’ rating with a target price of ₹229 per share, highlighting the resilience of GMV growth in both beauty and fashion segments despite some revenue headwinds.
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