Shares of FSN E-Commerce Ventures , the parent company of fashion and beauty retailer Nykaa, are expected to be in focus following the company's strong quarterly update for Q3 FY26. The company has delivered consolidated Gross Merchandise Value (GMV) and Net Sales Value (NSV) growth in the late twenties, reflecting renewed momentum across both key business verticals.
Consolidated Performance Overview
Nykaa expects to deliver consolidated net revenue growth at the upper end of mid-twenties for Q3 FY26, marking 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 model.
| Performance Metric: |
Q3 FY26 Expected Growth |
| Consolidated GMV Growth: |
Late twenties |
| Consolidated NSV Growth: |
Late twenties |
| Consolidated Net Revenue Growth: |
Upper end of mid-twenties |
Beauty Vertical Achieves Record Performance
The Beauty vertical is expected to deliver accelerated NSV growth of late twenties, marking the highest growth rate in the past six quarters. This stellar performance comes during 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.
Several factors contributed to this superior performance including outstanding performance of House of Nykaa brands, success of the Pink Friday sale, and robust new customer acquisition. As a result of this strong operational performance, the Beauty vertical's net revenue growth is expected to be in the upper end of mid-twenties.
Fashion Vertical Continues Revival Trajectory
The Fashion vertical maintained its revived growth trajectory with NSV growth of mid-twenties in Q3 FY26. This performance reflects the successful revival initiatives implemented since the start of the financial year, driven by strong performance of the core platform business, strategic new brand additions, and robust customer acquisition initiatives.
| Fashion Vertical Metrics: |
Q3 FY26 Performance |
| NSV Growth: |
Mid-twenties |
| Net Revenue Growth: |
Late teens |
However, net revenue growth for the Fashion vertical is expected to be in the late teens, lower than NSV growth. This differential is primarily attributed to subdued content and marketing income, along with ongoing channel optimization of fashion owned brands.
Q2 Financial Results Show Strong Profitability
In the previous quarter, Nykaa reported impressive financial results with consolidated net profit jumping 243% year-on-year to ₹34.00 crore compared to ₹10.00 crore in the corresponding period last year. The profit after tax is attributable to equity shareholders of the parent company.
| Q2 Financial Metrics: |
Current Quarter |
Previous Year |
Growth |
| Net Profit: |
₹34.00 cr |
₹10.00 cr |
+243% |
| Revenue from Operations: |
₹2,346.00 cr |
₹1,875.00 cr |
+25% |
| EBITDA Margin: |
6.80% |
5.50% |
+125 bps |
| PAT Margin: |
1.40% |
0.70% |
+71 bps |
Revenue from operations in Q2 stood at ₹2,346.00 crore, representing a 25% increase over ₹1,875.00 crore in the corresponding quarter of the previous financial year. EBITDA margin improved to 6.80%, up 125 basis points from 5.50% in the year-ago period, while PAT margin rose by 71 basis points to 1.40%.
Stock Performance and Market Position
Nykaa shares have demonstrated exceptional performance, rising nearly 60% in 2025. The company serves almost 49 million customers through its online platforms and 265 offline beauty destinations. The House of Nykaa represents the company's own consumer brands, including established names like Nykaa Cosmetics, Dot & Key, Kay Beauty, and fashion labels such as Nykd by Nykaa and 20 Dresses.
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