Nykaa expects net revenue growth in late twenties in Q2

Nykaa, the beauty and fashion retailer run by FSN E-Commerce Ventures, said in a filing on Sunday that it expects consolidated net revenue growth in the late twenties in the second quarter of FY27.

The company said consolidated gross merchandise value (GMV) growth is expected to be close to the thirties, while net sales value (NSV) growth should be in the early thirties. NSV refers to net sales value after returns, taxes, discounts and cancellations.

The company said fashion was a faster-growing vertical, with NSV expected to grow in the late forties and net revenue in the early forties. Nykaa said more than 250 brands were added during the quarter and that its partnership with Nike continued to see "encouraging early traction," supported by exclusive drops.


Beauty, the larger business, is expected to post NSV and net revenue growth in the late twenties. Nykaa added 14 net new stores in the quarter, taking its total to 338 as of September 30. Like-for-like store sales growth was in the early twenties, the highest in six quarters. House of Nykaa, its in-house brand portfolio, grew faster than the overall Beauty vertical.

The company said a larger part of the festive season falls in the third quarter this year, shifting some festive-led growth from Q2 to Q3.

The Nykaa parent reported a net profit of Rs 80 crore in the June quarter, up from Rs 24 crore a year ago. The company’s operating revenue rose 29% year-on-year (YoY) to Rs 2,782 crore in Q1 FY27, up from Rs 2,155 crore a year prior. Including other income of Rs 9.3 crore this quarter, its total income stood at Rs 2,791.3 crore.