Nykaa shares rise over 2% on strong GMV growth guidance for Q1FY26

Nykaa share price today: Shares of FSN E-Commerce Ventures witnessed a 2 per cent gain, logging an intraday high of ₹202.40 on Monday, after the company released its revenue expectations for the April-June quarter (Q1FY26). The net revenue figure is estimated to be at the lower end of mid-twenties, the company said in an exchange filing. Gross merchandise value (GMV) growth, meanwhile, is expected to be on the higher side, surpassing mid-twenties. 

 

At 09:50 AM, Nykaa shares were trading at ₹200.73, up by 1.26 per cent on the National Stock Exchange. In comparison, the Nifty50 was trading largely flat with a negative bias, quoting 25,442.20. So far this year, shares of the company have witnessed a solid double-digit rise of 21.4 per cent on the NSE.   FOLLOW STOCK MARKET UPDATES TODAY LIVE

Nykaa Q1FY26 Update

Nykaa's beauty vertical continued to show strong growth, even as geopolitical tensions dampened sentiment during the April-June period, leading to some loss of momentum. On the fashion side, the vertical is estimated to deliver GMV growth in the mid-twenties, signalling improvement from the previous quarters. The healthy performance was majorly driven by improving traction in the core platform, fueled by a broader assortment and healthy customer acquisition, as per the company.

 

"The strong growth came on the back of solid performance across all businesses including ecommerce platform, retail stores, eB2B distribution and the House of Nykaa brands," the company said in its exchange filing.  

 

"House of Nykaa brands continued its accelerated growth trajectory with strong performance of home-grown as well as acquired brands," the exchange filing further read.  ALSO READ | Dabur shares gain 4% as urban volume growth picks up with demand uptick 

Brokerage Views- Elara Securities

Analysts at Elara Securities believe that macro drivers such as Gen-Z users, niche and genuine brand offerings might help the e-commerce firm to outperform.

 

"Profitability levers exist - Private labels, premiumisation and advertising revenue to support scale. Initiatives such as Nykaa land and digital campaigns will drive conversion up. The company is focusing on growth, which may keep advertising and promotion (A&P) costs sticky, yielding less operating leverage. So, we cut our FY27E-28E Ebitda by 5-6 per cent, retaining FY25-28E revenue CAGR at 29 per cent," the brokerage firm stated in a report last month.  

Elara has raised the target price to ₹225 from ₹215 earlier and has maintained an 'Accumulate' rating on the stock.  ALSO READ | FMCG shares in focus; HUL, Dabur, Bajaj Consumer rally up to 8%; here's why

About Nykaa

The Indian e-commerce platform specialises in beauty, wellness and fashion products. The company was founded in 2012 by Falguni Nayar. FSN E-Commerce Ventures Private Ltd., the parent company of Nykaa, launched its ₹5,352 crore IPO in 2021. The public offering received robust investor interest as the shares of the company were listed at a premium of over 70 per cent. However, the shares of the new-age firm have since struggled to reach the listing price levels.