Gross merchandise value (GMV) is also estimated to have grown in the mid-20% range, the Mumbai-based company said in a quarterly update.
Nykaa’s beauty vertical is expected to post GMV growth in the higher end of the mid-20% range, though the company flagged a marginal business impact from subdued consumer sentiment in its Q1 flagship sale, which coincided with geopolitical tensions along the Indo-Pak border.
The growth in beauty came across channels, including Nykaa’s online platform, offline retail stores, business-to-business distribution arm, and its portfolio of in-house and acquired brands under the ‘House of Nykaa’ label. Net revenue from the beauty business is also expected to rise in the mid-20% range.
Meanwhile, the company’s fashion segment is likely to improve on previous quarters to deliver a GMV growth in the mid-20% range. The segment clocked Rs 3,800 crore in GMV in FY25. This performance was driven by improving traction in the core platform business, supported by an expanding assortment and increased customer acquisition.
However, net revenue from the fashion business is likely to grow in the mid-teens, trailing GMV growth.
At its recent investor day, Nykaa said it was targeting 3–4x growth in its fashion business over the next five years and has set a long-term earnings before interest, taxes, depreciation and amortisation (Ebitda) margin target of 10% for the segment.
In the March quarter, Nykaa reported a net profit of Rs 19 crore, nearly double the figure from the year-ago period. Operating revenue rose 23.6% year-on-year to Rs 2,016.7 crore, led by growth in the beauty and personal care segment.
The company has been also piloting express deliveries through ‘Nykaa Now’ in select pin codes across Mumbai, Delhi, and Bengaluru from last year.
However, in a recent interview with ET, Nykaa Fashion CEO Adwaita Nayar said the company remains cautious about quick commerce. Beauty, she said, is a discovery- and inspiration-led category that requires depth and width of assortment, which the quick commerce format does not typically support.
Nykaa is also transitioning into an AI-native enterprise, with over 40 generative AI initiatives underway across hyper-personalised shopping, automated ad targeting, backend automation, and AI-driven customer service, the company said earlier. More than half of its internal code will soon be AI-generated with most customer queries handled through AI-powered voice and chat interfaces.
Also Read: Nykaa eyes Rs 6,000 crore GMV from in-house brands by FY30, ramps up fashion and AI bets
