Newsletter
Shares of beauty and fashion retailer Nykaa surged after the company projected around 30% year-on-year revenue growth for the June quarter, raising hopes of one of its strongest performances in recent years.
Over the past month, Nykaa's stock has already gained more than 20%, and this latest update has added to the optimism.
Key growth drivers: beauty continues to perform well, while fashion is finally finding its footing. Nykaa expects its GMV (the total value of products sold), net sales and revenue to all grow in the early 30% range during Q1 FY27.
Its beauty business has continued to grow steadily, helped by higher sales from existing stores and an expanding retail footprint. During the quarter, Nykaa increased its store count from 313 to 324.
For years, Nykaa's fashion business has lagged behind its beauty division. But this quarter, it is expected to be the star performer, with net revenue projected to jump nearly 50%.
The company said growth was broad-based across women's, men's, kids' and home categories, while its partnership with Nike has also delivered a strong start.
Looking ahead: by FY30, Nykaa aims to double or even triple its revenue, grow EBITDA by 4-5 times, and expand its beauty retail network to more than 600 stores.
It also plans to reach 10 crore beauty consumers, significantly grow its fashion business, and scale its House of Nykaa brands into a business generating over ₹5,000 crore in net sales value (NSV).
