FSN E-Commerce Ventures Limited (Nykaa) delivered strong performance in Q3 FY26, with consolidated Gross Merchandise Value (GMV) and Net Sales Value (NSV) growth expected to be in the late twenties. The robust performance reflects renewed growth in the Fashion vertical since the start of this financial year alongside consistent strong performance of the Beauty vertical.

Consolidated Performance Overview

Nykaa is expected to deliver consolidated Net Revenue growth in the upper end of mid-twenties, reflecting a slight acceleration from the mid-twenties growth maintained over the past several quarters. This performance demonstrates the company's ability to sustain momentum across its diversified business portfolio.

Beauty Vertical Achieves Record Performance

The Beauty vertical emerged as a standout performer, expected to deliver accelerated NSV growth of late twenties, marking the highest growth in the past 6 quarters. This stellar growth comes in a seasonally strong quarter, making it the largest quarter to date in terms of absolute scale.

The growth was broad-based across each of Nykaa's beauty businesses, with the outperformance of House of Nykaa brands, the success of Pink Friday sale, and robust new customer acquisition contributing to the superior performance.

Fashion Vertical Continues Revival Trajectory

The Fashion vertical is expected to continue its revived growth trajectory with NSV growth of mid-twenties in Q3 FY26. This performance was supported by strong performance of the core platform business, new brand additions, and robust customer acquisition.

Net revenue growth for the Fashion vertical is expected to be in late teens, lower than NSV growth primarily due to subdued content and marketing income and ongoing channel optimization of fashion owned brands.

Business Scale and Market Position

Nykaa continues to strengthen its market position, serving almost 49 million customers through its online platforms and 265 offline beauty destinations. The company's House of Nykaa represents its own consumer brands, including Nykaa Cosmetics, Dot & Key, Kay Beauty, and fashion labels such as Nykd by Nykaa, KICA, and 20 Dresses.

Kalyan Jewellers shares jumped approximately 7% on Wednesday as the jewellery retailer reported strong Q3 FY26 performance, with the stock trading at ₹520.10 and hitting an intraday high of ₹535.00 against the previous close of ₹500.15. The Thrissur-based company's impressive consolidated revenue growth of 42% year-on-year was part of a broader rally in jewellery stocks, driven by festive demand and optimism around sustained consumer spending despite elevated gold prices.

Jewellery Sector Rallies on Strong Performance

Jewellery stocks rallied sharply on Wednesday, buoyed by strong quarterly business updates and festive demand. Leading listed players including Titan Company, Kalyan Jewellers, and Senco Gold moved higher as investors cheered Q3 revenue growth and expanding retail footprints. Khushi Mistry, Research Analyst at Bonanza, pointed out that the Q3 FY26 business updates beat market expectations, with growth driven by festive-season demand, higher average selling prices due to elevated gold prices, and healthy traction across both studded and plain gold jewellery.

Kalyan Jewellers Delivers Robust Growth

Kalyan Jewellers reported consolidated revenue growth of 42% in Q3 FY26 compared to the same period last year, demonstrating robust momentum across both domestic and international operations. India operations delivered impressive results with revenue rising 42% year-on-year, largely supported by healthy festive demand during and after the Diwali festival. The company benefited from strong consumer sentiment during the festive season, with growth being broad-based across both plain gold and studded jewellery categories, delivering healthy same-store sales growth of approximately 27%.

International Operations and Digital Success

International operations posted revenue growth of 36% compared with the year-ago period, contributing approximately 11% of consolidated revenue in the quarter. Within the Middle East, revenue increased by about 28% year-on-year, driven mainly by strong same-store sales growth. The company's digital-first jewellery platform, Candere, continued to outperform expectations, recording exceptional revenue growth of around 147% compared with the same period last year, underscoring the growing acceptance of online jewellery purchases.

Sector Outlook and Market Expectations

Although rich valuations raise some caution around near-term profitability, the sector's ability to deliver growth amid mixed market conditions has highlighted its resilience. Sustained demand through the upcoming wedding season, continued consumer preference for branded jewellery, and broader economic stability are expected to support further momentum in the sector. However, investors may remain watchful of gold price volatility and margin pressures, according to market analysts.