Nykaa clocks mid-twenties revenue growth in Q3 driven by strong beauty demand

Nykaa reported a steady acceleration in growth for the December quarter, with both its core beauty business and the recovering fashion vertical helping the company clock consolidated revenue expansion at the upper end of its recent trend.

In a quarterly revenue update filed with the stock exchanges, FSN E-Commerce Ventures Ltd said consolidated net revenue for Q3 FY26 is expected to grow in the upper end of the mid-twenties on a year-on-year basis.

Consolidated GMV and NSV growth are expected to be in the late twenties, marking a slight uptick from the mid-twenties growth band the company has maintained over the past few quarters.

The momentum follows a strong September quarter, when Nykaa reported a sharp jump in profitability. Consolidated net profit for Q2 rose more than threefold to ₹34.4 crore, compared with ₹10.04 crore in the same period last year. Meanwhile. revenue from operations during the quarter climbed 25.1% year-on-year to ₹2,345.98 crore

The sharper momentum was driven largely by the beauty vertical, which continues to be Nykaa’s largest and most profitable business. The company said beauty NSV is expected to grow in the late twenties, its fastest pace in the past six quarters. Q3 also turned out to be the largest quarter so far for the beauty business in absolute terms, helped by the festive season, the Pink Friday sale, and strong new customer additions.

Nykaa attributed the performance to broad-based growth across its beauty portfolio, including its private labels under the House of Nykaa. As a result, net revenue growth in the beauty vertical is expected to land at the upper end of the mid-twenties for the quarter, according to the filing Nykaa Q3.

Fashion, which had seen muted growth for much of the last year, continued its recovery trajectory in Q3. The company said fashion NSV is expected to grow in the mid-twenties, supported by better traction on the core platform, new brand additions, and improved customer acquisition. However, revenue growth in the fashion segment is likely to lag NSV growth, coming in the late teens.

Nykaa said this gap is primarily due to subdued content and marketing income and ongoing channel optimisation for its fashion-owned brands. The fashion vertical has historically been more volatile and margin-sensitive, and the company has been recalibrating its approach amid a broader slowdown in discretionary fashion spending.

The disclosure is a provisional revenue update and does not constitute financial results or earnings guidance.

Shares of Nykaa were 1.57% up at ₹269.05. The stock has gained 54% over the past one year.