Flagship Pink Friday Sale boosts performance as beauty vertical outpaces fashion; net profit momentum builds after 12 straight quarters of mid-20s growth.
Nykaa is expecting a revenue growth surge in the upper mid-twenties range for Q3 FY26, signaling continued strength in its core beauty business and consistent execution across verticals.
In a regulatory filing, the Falguni Nayar-led company projected that its gross merchandise value (GMV) and net sales value (NSV) for the quarter ended December 2025 would clock in at the late twenties, a step-up from previous quarters, which saw mid-20s growth.
Investors took note—Nykaa’s stock jumped 2.94% intraday, settling 1.36% higher at INR 268.35 on the BSE at 14:21 IST.
Beauty Business Breaks Records Amid Pink Friday Sale
Nykaa’s beauty vertical had its best quarter in six cycles, with NSV growth in the high twenties, fueled by its blockbuster Pink Friday Sale.
- Beauty net revenue is expected to grow at the upper end of mid-twenties, after a 25.2% YoY jump to INR 2,131 Cr in Q2.
- Q3 FY26 is being called Nykaa’s largest quarter to date in absolute scale, thanks to increased demand, new launches, and promotional momentum.
Why does this matter? Because beauty—not fashion—is still Nykaa’s heavyweight, delivering growth with both volume and margin durability.
Fashion Segment Grows Steadily, But Revenue Trails NSV
Nykaa’s fashion vertical continues to expand in NSV terms, clocking mid-twenties growth in Q3, supported by:
- A robust core platform
- Strategic brand additions
- Steady customer acquisition across quarters
But revenue growth for fashion is expected to land in the late teens, due to:
- Reduced content and marketing income
- Channel optimization of Nykaa-owned fashion brands, likely signaling cost-efficiency efforts or portfolio reshuffling
In Q2 FY26, fashion’s GMV was INR 1,180 Cr, contributing INR 201 Cr in revenue—a 21% YoY increase.
12 Straight Quarters of Mid-Twenties Growth—and Profitability
This projected growth builds on Nykaa’s 25% YoY revenue jump in Q2 FY26 to INR 2,346 Cr, marking its 12th straight quarter of mid-20s growth.
- Q2 also saw consolidated GMV rise 30% QoQ to INR 4,744 Cr
- Net profit jumped 166% YoY to INR 33 Cr, showing cost controls and operational leverage are kicking in
Is Nykaa finally balancing scale with profitability? All signs point to yes.
TL;DR:
Nykaa expects Q3 FY26 net revenue to grow in the upper mid-20% range, led by a record-breaking quarter in beauty. Fashion NSV remains strong, but revenue trails due to channel optimization. The company remains on a 12-quarter growth streak, with rising profitability and solid investor sentiment.
