India's Nykaa targets high-20% GMV growth for Q4

Nykaa’s parent FSN E-Commerce Ventures said its gross merchandise value is set to rise in the late 20s in Q4 FY26, while full-year net revenue growth should land at the upper end of the mid-20s, driven by its beauty and fashion units.

The company said its beauty business, its biggest revenue source, should post growth in the late 20s in the quarter, while its fashion unit is expected to gain pace after steady expansion through FY26.

Nykaa added 26 stores and 11 store integrations with Kiehl in Q4, taking its total store count to 313 by March 31.

Its shares rose as much as 3.9% to 255.5 rupees (US$2.7) after the update.

🔗 Source: The Economic Times

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Implications, context, and why it matters.

Two distinct engines are powering Nykaa’s growth trajectory

Nykaa is moving past a marketplace-only role. It now runs India operations for global brands through partnerships that include Nike and Kiehl’s (a premium skincare brand owned by L’Oréal) 1.
For Nike and Kiehl’s, Nykaa manages Indian D2C (direct-to-consumer) digital platforms end-to-end. Work covers on-site experience, digital marketing, fulfillment, and customer experience 1.
Its “House of Nykaa” division of owned brands adds another growth stream. Management put it at an annualized 3,500 rupees (US$38) crores in gross merchandise value (GMV) run rate in Q3 FY26 1.
Dot & Key (a skincare brand owned by Nykaa) reached an annualized GMV run rate of about 1,900 rupees (US$20) crores. Management also cited high-teens EBITDA (earnings before interest, taxes, depreciation, and amortization) margins 1.

Nykaa is building a repeatable model for global brands in India

The full-stack partnership model lets global brands run India digital commerce with Nykaa handling the stack. It avoids building every local function in-house 1.
Nykaa said it will operate Nike’s official D2C (direct-to-consumer) digital commerce in India through Nike.in and the Nike commerce apps. The remit includes site experience, marketing, fulfillment, and customer experience 1.
Management said the same approach has been used with other partners. Examples include Foot Locker (a global athletic footwear and apparel retailer) and Kiehl’s India operations, though Nykaa did not share commercial terms or guidance 1.