Nykaa shares gain 4% on healthy second quarter update; details here

Nykaa's consolidated GMV growth is expected to be close to 30 per cent, up from the mid-20s in recent quarters

Shares of FSN E-Commerce Ventures Ltd. rose nearly 4 per cent on Monday as the company said it is likely to post healthy second-quarter earnings, driven by an early start to the festive season.

 

The operator of Nykaa brand's stock rose as much as 3.69 per cent during the day to ₹248.6 per share, the biggest intraday rise since October 1 this year. The Nykaa stock pared gains to trade 2.7 per cent higher at ₹246.2 apiece, compared to a 0.34 per cent advance in Nifty 50 as of 10:35 AM. 

 

Shares of the company rose to the highest level since September 8 this year and currently trade at 30 times the average 30-day trading volume, according to Bloomberg. The counter has risen 51 per cent this year, compared to a 5.3 per cent advance in the benchmark Nifty 50. Nykaa's parent has a total market capitalisation of ₹70,430.38 crore.   READ STOCK MARKET LIVE UPDATES

Nykaa Q2 update

The company reported accelerated growth momentum in the second quarter of the financial year 2025–26 (FY26). Consolidated gross merchandise value (GMV) growth is expected to be close to 30 per cent, up from the mid-20s in recent quarters, driven by renewed momentum in the Fashion vertical and healthy performance in the Beauty vertical, the company said.

 

House of Nykaa brands continued to expand rapidly, supported by strong performance from acquired brands like Dot & Key, as well as homegrown labels such as Kay Beauty and Nykaa Cosmetics, the company said in the statement. The Fashion vertical is expected to deliver net sales value (NSV) growth in the higher mid-20s per cent, aided by expanding brand assortment and robust customer acquisition.

 

Overall, Nykaa’s consolidated net revenue is expected to grow in the mid-20s per cent, supported by an early start to the festive season, it added. The company also welcomed recent GST reforms, noting they could boost disposable income and support long-term growth across consumer and discretionary categories.

JM Financial on Nykaa Q2

According to JM Financial, Nykaa reported a strong quarterly revenue update for Q2FY26, reflecting sustained growth in the first half of the financial year. The company highlighted mid-20s per cent consolidated revenue growth, supported by renewed traction in Fashion and continued strength in the Beauty segment, driven by House of Nykaa brands, the brokerage said. 

 

Performance was further aided by an early start to the festive season, along with recent GST and tax reforms boosting discretionary spending. JM Financial expects Nykaa to continue outperforming as one of the cleanest consumption-led plays in India and maintains a 'Buy' rating on the stock.