FSN E-Commerce Ventures Limited has received recognition for its environmental, social, and governance practices through an enhanced ESG rating from a leading sustainability assessment firm. The development marks a significant milestone in the company's commitment to sustainable business practices and corporate responsibility.

ESG Rating Details

Nykaa disclosed that NSE Sustainability Ratings and Analytics Limited has assigned an increased ESG rating of 72 for FY2025. The rating agency, which holds SEBI registration as a Category I ESG Rating Provider, issued its assessment report on January 07, 2026.

Independent Assessment Process

The company emphasized that this rating represents an independent evaluation conducted by NSE Sustainability. The assessment was performed without any engagement or commission from FSN E-Commerce Ventures Limited, demonstrating the objective nature of the evaluation process.

NSE Sustainability conducted its analysis using information available in the public domain, ensuring transparency and independence in the rating methodology. This approach provides stakeholders with an unbiased assessment of the company's ESG performance across multiple parameters.

Regulatory Compliance

The disclosure was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement also aligns with the SEBI Master Circular dated November 11, 2024, which provides guidelines for ESG-related disclosures by listed companies.

The rating reflects the company's performance across three key dimensions:

• Environmental: Assessment of environmental impact and sustainability initiatives
• Social: Evaluation of social responsibility and stakeholder engagement practices
• Governance: Analysis of corporate governance structures and transparency measures

Market Communication

FSN E-Commerce Ventures Limited communicated this development to both major stock exchanges on January 08, 2026. The disclosure was sent to the National Stock Exchange of India Limited and BSE Limited, ensuring comprehensive market awareness of the ESG rating assignment.

The complete rating report and detailed analysis can be accessed through NSE Sustainability's official platform at nse-esgrating.com, providing investors and stakeholders with comprehensive information about the assessment methodology and findings.

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.

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.

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.

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.