Nykaa shares gain 2% post-Q1 business update; stock up 22% so far in 2025

E-commerce GMV (Gross Merchandise Value) growth refers to the increase in the total value of goods sold through e-commerce platforms.

Reacting to the numbers, the stock of Nykaa rose as much as 2.10% to ₹202.4 on the NSE. On a year-to-date (YTD) basis, shares have rallied over 22%. In the past six months, the stock has gained 17%.

Nykaa’s beauty vertical is expected to deliver GMV growth in the higher mid-twenties. This was despite disruption on account of geopolitical tensions that led to softer sentiment during the Q1’s flagship sale, causing some loss of business.

The strong growth came on the back of solid performance across all businesses, including the e-commerce platform, retail stores, eB2B distribution and the House of Nykaa brands.

House of Nykaa brands continued its accelerated growth trajectory with strong performance of home-grown as well as acquired brands, it added.

As a result, the beauty vertical’s net revenue is expected to grow in the mid-twenties, similar to previous quarters.

Nykaa’s Fashion vertical is expected to deliver GMV growth in the mid-twenties, marking a strong improvement over the previous quarters. This performance was driven by improving traction in the core platform business, supported by an expanding assortment and robust customer acquisition.

Fashion vertical’s net revenue growth is expected to improve sequentially to the mid-teens, though lower than the GMV growth.

Nykaa's other key updates

FSN E-Commerce Ventures Limited, the parent company of fashion and beauty retailer Nykaa, saw a block deal wherein Harindarpal Singh Banga and his wife Indra Banga divested a 2.1% stake worth ₹1,213 crore.

Harindarpal Singh is a commodities billionaire and Chairman and CEO of Hong Kong-based Caravel Group. Banga was an early investor in Nykaa, which went public in 2021.

The transaction comprises a sale of approximately 6 crore shares amounting to around a 2.1% stake in FSN.

After the latest transaction, Harindarpal's holding in Nykaa has come down to 2.87% from 4.97%.

Nykaa targets break-even for fashion arm in FY26

Recently, FSN E-Commerce Ventures said it has set a break-even target of FY26 for its cash-burning fashion arm on account of marketing efficiencies, overhead leverage, and own-brand growth.

Nykaa is also foraying into the quick-commerce arena with "Nykaa Now", which offers delivery times ranging from 30 to 120 minutes across seven major cities. The service is backed by a network of beauty warehouses, physical retail stores and rapid stores across the country.

The fashion vertical, which generated about ₹3,800 crore in GMV (Gross Merchandise Value), is currently a drag on consolidated profitability, posting a negative EBITDA margin of (8.3%) for FY25.