Nykaa sees Q1 FY26 revenue up in mid-20% range

Nykaa expects its consolidated net revenue for Q1 FY26 to grow in the mid-20% range, driven by strong performance in the beauty segment.

The beauty vertical’s GMV is projected to rise in the high-20% range, supported by growth across online platforms, physical stores, eB2B distribution, and in-house brands under the “House of Nykaa” portfolio.

Despite geopolitical tensions during its flagship sale, net revenue from the beauty segment is still expected to grow in the mid-20% range.

Nykaa’s fashion business, which has historically weighed on margins, is showing recovery.

The company targets EBITDA breakeven for this segment by FY26 through premium positioning and lower discounting.

In FY25, Nykaa added over 50 new stores, expanding to more than 110 cities and focusing on integrating online and offline channels.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ India’s beauty market transformation fuels Nykaa’s consistent growth

The Indian beauty market is undergoing remarkable expansion, projected to grow from $6.5 billion in 2017 to over $20 billion by 2025, creating a fertile environment for Nykaa’s current performance1.

This industry transformation is largely driven by increased internet penetration, particularly due to affordable data plans from Jio, which has enabled consumers in Tier II and III cities to access beauty products online more easily1.

Nykaa strategically positioned itself by adopting an inventory-led model focused on customer education rather than discounting, resulting in doubled revenue from Rs. 578 crore in FY 2017-18 to Rs. 1,299 crore in FY 2018-192.

The company has also successfully reduced customer acquisition costs from Rs. 650-1000 in 2012 to approximately Rs. 200 in 2017, demonstrating improved operational efficiency as it scaled2.

Nykaa’s recent Q4 FY25 performance, with a 110% increase in net profit to Rs. 19 crore and 24% revenue growth to Rs. 2,062 crore, shows the sustainability of this model in India’s evolving beauty market3.

2️⃣ Omnichannel strategy becomes critical for beauty retail success

Nykaa’s aggressive offline expansion—adding over 50 new stores in FY25 alone to reach more than 110 cities—reflects the enduring importance of physical retail in the beauty sector despite e-commerce growth3.