Nykaa shares surge 3% on Q3 business update. Here’s everything you need to know

Shares of FSN E-Commerce Ventures, the parent company of Nykaa surged to their days high of Rs 272.55 on the BSE, gaining 2.9% in early trade on January 5, Monday, after the company issued its Q3 FY2026 business update, indicating a strong quarter driven by robust performance in the Beauty vertical and a continued revival in the Fashion segment.

The company said consolidated GMV and NSV growth is expected to be in the late twenties in Q3 FY2026. This performance reflects renewed growth in the Fashion vertical since the start of the financial year, alongside consistently strong traction in the Beauty vertical. Based on this, Nykaa expects consolidated net revenue growth to be at the upper end of the mid-twenties, marking a slight acceleration from the mid-twenties growth reported over the past several quarters.

Nykaa’s Beauty vertical is expected to deliver accelerated NSV growth in the late twenties, the highest level seen over the past six quarters. The company noted that this came in a seasonally strong quarter, making Q3 FY2026 the largest quarter to date in terms of absolute scale for the Beauty business. Growth was described as broad-based across all beauty businesses. The outperformance of House of Nykaa brands, the success of the Pink Friday sale and strong new customer acquisition contributed to the performance. As a result, net revenue growth for the Beauty vertical is expected to be at the upper end of the mid-twenties.

The Fashion vertical is expected to continue on its revived growth trajectory, with NSV growth in the mid-twenties during Q3 FY2026. This was supported by strong performance of the core platform business, new brand additions and robust customer acquisition.

However, net revenue growth for Fashion is expected to be in the late teens, lower than NSV growth, primarily due to subdued content and marketing income and ongoing channel optimisation of fashion-owned brands.

In Q2, reported a 243% YoY jump in its consolidated Q2 net profit at Rs 34 crore versus Rs 10 crore in the year ago period. The profit after tax (PAT) is attributable to the equity shareholders of parent.

The revenue form operations in the quarter stood at Rs 2,346 crore, up 25% over Rs 1,875 crore in the corresponding quarter of the last financial year.

EBITDA margin was reported at 6.8%, up 125 bps over 5.5% in the year ago period meanwhile PAT margin stood at 1.4% versus 0.7% in Q2FY25, rising by 71 bps.

Nykaa shares rose nearly 60% in 2025.

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