INSUBCONTINENT EXCLUSIVE:
Shares of Nykaa (FSN E-Commerce Ventures) rose nearly 3% to Rs 203 on the BSE in Monday's trade, after the company shared its Q1 FY26
business update on Sunday.Nykaa said it has started FY26 on a strong note, with consolidated net revenue growth for the first quarter
expected to be at the lower end of the mid-twenties range
Gross merchandise value (GMV) growth is expected to surpass this, crossing the mid-twenties, indicating sustained momentum across recent
quarters.Beauty SegmentThe Beauty vertical is expected to post GMV growth in the higher mid-twenties, despite softer consumer sentiment
during its flagship sale period, which was impacted by geopolitical tensions.The company said that the growth was driven by robust
performance across its ecommerce platform, retail stores, eB2B distribution, and the House of Nykaa brands
The House of Nykaa portfolio, which includes both home-grown and acquired brands, continued its accelerated growth trajectory.As a result,
net revenue in the Beauty vertical is also expected to grow in the mid-twenties, consistent with previous quarters.
Live EventsFashion
SegmentThe Fashion vertical is projected to deliver GMV growth in the mid-twenties, marking a notable improvement over recent quarters
This performance was supported by increased traction on the core platform, an expanding product assortment, and strong customer
acquisition.While net revenue growth for the Fashion vertical is expected to improve sequentially to the mid-teens, it will likely remain
lower than the GMV growth rate.Nykaa shares target priceAs per Trendlyne data, the average target price of the stock is Rs 205, which
indicates an upside potential of 1% from the current market prices
The consensus recommendation from 5 analysts for the stock is a 'Hold'.Nykaa shares have gained 23% YTD, and are up 44% over the past two
The company currently has a market capitalisation of Rs 57,976 crore.(Disclaimer: Recommendations, suggestions, views and opinions given by
the experts are their own
These do not represent the views of the Economic Times)
