Nykaa shares jump 2% on strong Q2 business update. Check details – News Air Insight

Shares of FSN E-Commerce Ventures Ltd., which operates beauty and fashion platform Nykaa, jumped 2.2% to their day’s high of Rs 245.05 on the BSE on Monday, October 6, after the company released its business update for the September quarter on Sunday evening.

The company said it delivered a “robust performance” in the second quarter, with consolidated net revenue expected to grow in the mid-20% range year-on-year, supported by an early onset of the festive season.

Growth momentum strengthened during the quarter, with consolidated gross merchandise value (GMV) likely rising close to 30%, compared with mid-20s growth in preceding quarters. This acceleration was led by a pickup in the fashion business and steady gains in the beauty segment, Nykaa said in an exchange filing on October 5, Sunday.

The beauty vertical is expected to post net sales value (NSV) and revenue growth in the mid-20s, marking the tenth straight quarter of similar performance. Acquired brands such as Dot & Key, along with in-house lines like Kay Beauty and Nykaa Cosmetics, continued to drive strong growth for the company’s portfolio.

In the fashion segment, NSV growth is seen in the higher mid-20s range, while revenue growth is likely to improve to the low-20s from the low-to-mid-teens seen in prior quarters. Nykaa said the gap between NSV and net revenue growth in fashion stems from a delay in advertising and marketing income.

The company added that recent GST reforms are a positive development, as they are expected to lift disposable incomes and support long-term demand across consumer and discretionary categories.

Q1 Performance Snapshot

The company reported a consolidated net profit of Rs 24 crore in Q1, which was up 79% compared to Rs 14 crore reported in the year-ago period. The company’s revenue from operations in the quarter under review grew 23% to Rs 2,155 crore versus Rs 1,746 crore in Q1FY25.

The company’s GMV reached Rs 4,182 crore in Q1FY26, up 26% YoY, while its Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) was 46% higher YoY with EBITDA margin expanding to 6.5% from 5.5% in Q1 FY25.

Shares of the company ended at Rs 239, lower by over 1% from the last close on the NSE. Nykaa shares have risen 45% on a year-to-date basis.

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