Nykaa shares rally 5% on strong Q3 update; net revenue growth higher than mid-20s

Shares of FSN E-Commerce Ventures rallied 5.3% today to an intraday high of Rs 176.50 on the BSE after the company announced a strong third quarter, with net revenue growth expected to be higher than the mid-twenties.

“Nykaa (FSN E-Commerce Ventures Limited, along with its subsidiaries) witnessed strong performance in Q3 FY2025, with consolidated net revenue growth likely to exceed the mid-twenties. This is higher than the consolidated GMV growth for the same period, indicating a positive trend in GMV to net revenue translation,” the company said in an exchange filing.

The updates were shared by the company on Sunday, January 5.


Nykaa’s beauty vertical growth has accelerated compared to previous quarters, with net revenue growth higher than the mid-twenties.

The GMV growth for the beauty vertical is expected to be in the low thirties, indicating strong momentum across all of Nykaa’s beauty businesses—e-commerce platform, retail stores, owned brands, and eB2B distribution.

Also read: Angel One shares rally over 4% after reporting Q3 updates

Customer acquisition at Nykaa continues to accelerate. The eB2B distribution business, Superstore by Nykaa, which accounts for 8% of the beauty vertical’s GMV (up from 7% a year ago), continues to expand rapidly and now services around 260,000 transacting retailers across more than 1,100 cities, the exchange filing further read.

Nykaa further informed that its fashion vertical is expected to deliver a net revenue growth of around 20%, while NSV growth is likely to be in the low to mid-teens, indicating continued strong growth in content, marketing, and service-related income.

“We believe online fashion demand continues to be subdued, but we remain optimistic about the long-term growth opportunity,” said Nykaa in its filing to the stock exchanges.

Over the past year, Nykaa’s shares have remained flat with a positive bias but have dropped by 1.3% in the last 6 months and by nearly 9% in the last 3 months.

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