Nykaa Sees Fastest Quarterly Revenue Growth in 3 Years

Nykaa, India’s leading fashion-to-beauty retailer, has signaled a strong rebound in its growth trajectory. The company announced that it expects net revenue to grow in the “late-20% range” in the fourth quarter of fiscal 2026, marking its fastest pace in three years. This guidance reflects renewed momentum across its core beauty and fashion segments, supported by its omni-channel strategy that blends online strength with an expanding offline presence.

FSN E‑Commerce Ventures Ltd. (Nykaa’s parent) filed a provisional update with the exchanges, stating that consolidated net revenue growth is expected in the late‑20% range year‑on‑year. Gross Merchandise Value (GMV) growth is projected in the late‑20s, while Net Sales Value (NSV) growth is tracking higher, in the early‑30s.

Nykaa’s journey on the public markets has been closely watched since its blockbuster IPO in November 2021. The company, formally known as FSN E‑Commerce Ventures Ltd., went public at a price band of ₹1,085–₹1,125 per share, raising about ₹5,350 crore. Investor enthusiasm was extraordinary: Nykaa debuted at nearly ₹2,018 per share, an 80% premium over its issue price, making it one of the most successful listings of that year.

The initial hype reflected Nykaa’s unique positioning as India’s first major beauty and fashion e‑commerce IPO. However, the stock’s trajectory since then has been far from smooth. By late 2022, Nykaa’s share price had fallen below ₹1,000, as investors reassessed its stretched valuations and profitability challenges. Rising competition from quick-commerce platforms like Blinkit and Zepto also weighed on sentiment, alongside margin pressures from heavy marketing spends.

From 2024 onward, Nykaa began to stabilize. The company leaned into its omni-channel strategy, expanding aggressively into offline stores while strengthening its digital platform. This helped restore investor confidence, with the stock trading in the ₹1,200–₹1,400 range through much of 2024. By 2025–2026, Nykaa’s shares were hovering between ₹1,400–₹1,600, supported by renewed growth momentum. The latest guidance of late‑20% revenue growth in Q4 FY2026 underscores this recovery, suggesting that both its beauty and fashion segments are firing again.

Performance Since Listing

Period	Price Trend	Key Drivers
Nov 2021 (Listing)	Listed at ~₹2,018 (nearly 80% premium over issue price).	Strong investor demand, excitement around India’s first major beauty/fashion e‑commerce IPO.
2022–2023	Sharp correction; stock fell below ₹1,000 by late 2022.	Profit-taking, high valuations, margin pressures, competition from quick-commerce players.
2024	Stabilization around ₹1,200–₹1,400.	Expansion of offline stores, improved revenue growth, focus on profitability.
2025–2026 (latest)	Trading in the ₹1,400–₹1,600 range, with renewed investor confidence.	Guidance of late‑20% revenue growth in Q4 FY2026, strongest in three years.

Competitive Comparison

Nykaa’s performance since IPO can be understood as a three-phase story: the euphoric debut, the sobering correction, and the gradual recovery. The initial surge was driven by excitement around consumer-tech and e‑commerce, but the correction highlighted the risks of high valuations and competitive pressures. The recovery phase now reflects Nykaa’s ability to adapt—balancing expansion with profitability, and leveraging its brand strength in premium beauty and fashion.

When compared to peers, Nykaa’s trajectory stands out. Zomato, which went public in July 2021 at ₹76 per share, listed at ₹115 but later fell below its issue price in 2022. It has since recovered, trading in the ₹120–₹140 range, driven by food delivery scale and its Blinkit acquisition, though profitability remains thin. Mamaearth (Honasa Consumer Ltd.), which listed in November 2023 at ₹324 per share, saw a modest premium on debut and has since delivered steady gains, trading in the ₹350–₹400 range. Unlike Nykaa’s volatility or Zomato’s scale-first approach, Mamaearth has positioned itself as a niche consumer brand with more modest upside.

Takeaway

For investors, Nykaa remains a case study in how India’s new-age consumer-tech companies navigate the public markets. The risks are clear: competition is intense, and profitability must be carefully managed. Yet the company’s latest guidance shows that it is capable of reigniting growth, making it one of the more resilient players in India’s digital retail landscape.

»» In comparison, Nykaa offers growth potential with volatility, Zomato offers scale with risk, and Mamaearth offers stability with modest upside. Together, these three companies highlight the diverse paths India’s consumer-tech IPOs have taken—and why Nykaa’s renewed momentum is particularly noteworthy.