Nykaa Expects Close to 30% GMV Growth in Q2 FY27, with Fashion Leading the Charge
FSN E-Commerce Ventures, the parent company of beauty and fashion retailer Nykaa, expects its consolidated Gross Merchandise Value to grow close to 30% year-on-year in the quarter ended September 2026, according to a provisional business update released to the stock exchanges on October 4.
Here’s how the growth breaks down. Consolidated Net Sales Value is expected to grow in the early thirties, while net revenue growth is projected to come in a bit lower, in the late twenties, reflecting the usual gap between gross merchandise value and what actually converts to revenue. Nykaa’s core Beauty vertical, which still anchors the business, is expected to post NSV and net revenue growth in the late twenties, with the company highlighting its strongest like-for-like store performance in six quarters.
Fashion is clearly the standout story this quarter. The vertical is expected to post NSV growth in the late forties and net revenue growth in the early forties, nearly double the pace of Beauty, with new customer acquisition cited as the key driver. Nykaa also expanded its physical footprint, adding 14 net new stores during the quarter and taking its total retail network to 338 stores as of September 30, 2026.
There’s an important timing caveat worth flagging. Nykaa noted that a larger portion of this year’s festive season falls in the third quarter rather than the second, meaning some festive-led demand has effectively shifted from Q2 into Q3, a detail that helps explain why revenue growth trails slightly behind the GMV and NSV numbers.
The market responded immediately and positively, FSN E-Commerce Ventures shares jumped around 5-6% following the update, touching an intraday high near Rs 343. This builds on real momentum, Nykaa’s Q1 FY27 operating revenue had already grown 29% YoY to Rs 2,782 crore, with profit surging 3.3X to Rs 80 crore.
A reality check worth noting: these are provisional, forward-looking figures from a business update, not final audited results, the complete picture with margins and EBITDA will only come with the full Q2 earnings release.
From steady beauty retail to a fast-accelerating fashion bet, Nykaa’s Q2 update is a signal that its multi-engine growth strategy is genuinely working, not just on paper.
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