FSN E-Commerce Ventures Limited , operating as Nykaa, reported robust growth momentum in the second quarter of fiscal year 2027. The company projected consolidated Gross Merchandise Value (GMV) growth in the early thirties percent and Net Sales Value (NSV) growth also in the early thirties percent year-on-year.

Consolidated Net Revenue is expected to grow in the late twenties percent. This performance reflects strengthening across both core verticals, supported by increasing scale in Fashion and steady expansion in Beauty. The update highlights a shift in festive season timing, with a larger portion of festive sales moving to the third quarter.

Vertical performance breakdown

The Beauty vertical maintained healthy performance with NSV and Net Revenue growth both expected in the late twenties percent. Omnichannel strength was evident through strong platform growth driven by new customer acquisition and repeat engagement. Retail operations expanded with 14 net new store additions, bringing the total count to 338 stores as of September 30, 2026. Like-for-like store sales grew in the early twenties percent, marking the highest growth rate in the last six quarters. House of Nykaa continued to outperform the broader Beauty segment.

The Fashion vertical continued to build scale with NSV expected in the late forties percent and Net Revenue in the early forties percent. New customer acquisition remained a key driver, with over 250 brands added during the quarter. The partnership with Nike showed encouraging traction supported by exclusive product drops.

What the numbers show

A divergence exists between the overall consolidated growth and the specific vertical drivers. While consolidated NSV growth is in the early thirties percent, the Fashion vertical’s NSV growth in the late forties percent significantly outpaces the Beauty vertical’s late twenties percent. This indicates that the Fashion segment is acting as the primary accelerant for top-line expansion, contributing disproportionately to the consolidated growth rate compared to its established Beauty counterpart.

Operational updates and outlook

The company noted that with a larger part of the festive season falling in Q3, some festive-led growth has shifted from Q2 to Q3. Despite this timing shift, Nykaa remains confident in the underlying growth drivers of the business. The retail network’s like-for-like sales growth hitting a six-quarter high suggests improved consumer footfall and transaction values in physical stores.

This revenue update is provisional and subject to limited review by statutory auditors. It does not constitute financial results or earnings guidance. All growth figures are on a year-on-year basis.

Nykaa announced a strategic collaboration with BOLD, L'Oréal's corporate venture capital fund, to jointly invest in high-growth Indian beauty and personal care brands. The partnership aims to empower emerging entrepreneurs by combining capital with strategic mentorship and global beauty expertise.

Under the agreement, both entities will acquire minority stakes in selected brands. This structure ensures that founders retain full operational and creative control, continuing to run their businesses independently with their own teams and culture. The collaboration leverages Nykaa's extensive omnichannel retail network and consumer insights alongside L'Oréal's global resources.

Strategic objectives and structure

The initiative focuses on backing fast-growing brands with strong consumer traction and distinctive propositions. Investments are purely financial and minority in nature, designed to support the scaling of ambitious Indian startups without compromising their independence.

Jacques Lebel, Managing Director, L'Oréal India, stated that the partnership reflects a commitment to supporting local talent through capital and mentorship. Anchit Nayar, Executive Director and CEO, Nykaa Beauty, highlighted the synergy between Nykaa's deep distribution network and L'Oréal's global expertise as a key asset for new founders.

Key features of the collaboration

• Minority Stakes: Both partners will take non-controlling interests, ensuring founders maintain ownership control.
• Mentorship: Brands will receive guidance from L'Oréal's global beauty experts and Nykaa's retail specialists.
• Ecosystem Access: Invested companies gain access to Nykaa's consumer ecosystem and L'Oréal's global network.
• Long-term Partnership: The focus is on building enduring brands for the Indian and global markets.

About the partners

BOLD, launched in 2018, is L'Oréal's corporate venture capital fund investing across the beauty value chain. It supports innovative start-ups in Beauty and Wellness Brands, as well as Science and Tech for beauty. Nykaa, India's largest beauty retail company, serves over 60 million customers through its online platforms and 324 offline stores as of June 30, 2026.