Nykaa's GMV growth expected to reach 27% in Q1 FY26

Nykaa is expected to report revenue growth in the mid-20% range for the first quarter of financial year 2025-2026, according to estimates from JM Financial and HDFC Securities.

Nykaa, an Indian online marketplace for beauty and fashion, is projected to see continued momentum in its beauty and personal care segment, with brokerages forecasting gross merchandise value growth of around 26% to 27% year-on-year.

HDFC Securities cited a rise in active users and order volumes, while JM Financial noted gains from Nykaa’s eB2B channels and its men’s platform.

The fashion segment is also expected to improve, with estimated GMV growth of about 25% year-on-year, though net revenue growth is likely to remain in the mid-teens.

The company expanded to over 110 cities after adding more than 50 stores in fiscal year 2025.

Both brokerages expect Nykaa’s profitability to improve for the quarter, with EBITDA margins projected to rise slightly compared to last year.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Fashion segment recovery signals major operational turnaround

Nykaa’s projected 25% fashion GMV growth represents a significant improvement from recent performance challenges that have plagued this segment.

As recently as mid-2025, the fashion division was growing at only 12% year-over-year, significantly underperforming the beauty segment 1.

The fashion business has historically faced structural challenges including higher return rates, increased logistics costs, and lower repeat purchase rates compared to beauty products, making profitable growth particularly difficult 1.

Unlike beauty purchases where customers develop brand loyalty and make frequent repurchases, fashion lacks the same organic discovery patterns and repeat buying behavior that drive Nykaa’s core business success.

The current growth acceleration suggests Nykaa’s strategic adjustments, including better brand partnerships and marketplace model exploration, may finally be gaining traction in addressing these operational complexities.

2️⃣ Offline expansion builds on proven tier-2 city strategy

Nykaa’s addition of 50+ stores in FY25 continues a deliberate expansion into smaller cities that began as early as 2019, when the company recognized growing beauty demand beyond metropolitan areas 2.