FSN E-Commerce Ventures, the parent company of Nykaa, saw its shares surge 6.25% in intraday trade on Monday, October 6, to hit a fresh one-year peak of ₹254.80 per share. This positive response from investors follows the release of the company’s Q2FY26 business update.
Q2 Business Update
In its regulatory filing on Sunday, the company said it has seen accelerated growth momentum in Q2FY26 and delivered yet another quarter of healthy performance, with consolidated net revenue growth expected in the mid-twenties, aided by an early start to the festive season.
It expects consolidated GMV growth to be close to the thirties, compared to the mid-twenties in the last few quarters. This growth was led by renewed momentum in the fashion vertical and a healthy performance in the beauty vertical.
Nykaa expects its Beauty vertical to deliver NSV and net revenue growth in the mid-twenties, marking over ten consecutive quarters of sustained growth momentum. Nykaa brands continue to witness rapid growth, driven by the robust performance of acquired brands like Dot & Key, as well as homegrown brands like Kay Beauty and Nykaa Cosmetics.
The company also anticipates the fashion vertical to deliver NSV growth in the higher mid-twenties, supported by strong traction in the core platform business. This growth is led by expanding brand assortment and robust customer acquisition.
According to the company, the vertical’s net revenue growth is expected to improve to the low twenties, up from the low to mid-teens in the last few quarters. Net revenue growth for the vertical is lower than NSV growth due to a lag in advertising and marketing income.
“The recent GST reforms announced by the government are a welcome step toward stimulating demand. These reforms are expected to increase disposable income and drive long-term growth across several consumer and discretionary categories,” the company said in its regulatory filing.
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