Mumbai, India — October 10, 2025: FSN E-Commerce Ventures Ltd, the parent company of beauty and lifestyle retailer Nykaa, saw its shares soar by nearly 11% this week, marking the biggest weekly gain in 14 months. The surge reflects investor optimism around the company’s upcoming September-quarter (Q2) performance and a promising rebound in its fashion vertical.
Momentum Builds as Fashion Catches Up
Nykaa’s stock has been on a steady climb, closing the last six months in the green and adding another 14% in October alone. With a year-to-date return of 62%, the stock is on track for its strongest annual performance since its market debut in November 2021.
The rally gained fresh momentum after the company released its Q2 business update, projecting consolidated net revenue growth in the mid-twenties. The key driver this time: a sharp recovery in the Fashion business, which had previously lagged behind Nykaa’s core beauty segment.
According to the update, Nykaa expects its Fashion vertical’s Net Sales Value (NSV) to grow in the high mid-twenties, the best performance in over a year. Analysts at JM Financial suggest that the segment could break even by FY26, possibly as early as Q3FY26.
Beauty and Personal Care Remains Nykaa’s Growth Engine
While Fashion is finally regaining its footing, Nykaa’s Beauty and Personal Care (BPC) business continues to power overall growth. The company projects mid-twenties revenue and NSV expansion, extending a multi-quarter streak of double-digit growth.
Its “House of Nykaa” portfolio—comprising successful in-house brands such as Kay Beauty, Nykaa Cosmetics, and acquired labels like Dot & Key—remains central to this upward trajectory.
The premium beauty segment in India, valued at nearly $28 billion, has continued to thrive despite a broader slowdown in urban consumption. Strong discretionary spending by upper-middle-class and affluent consumers has buoyed sales for premium products, giving Nykaa a strategic advantage.
Analysts See Improving Margins and Strong Outlook
With both fashion and beauty segments performing well, analysts expect operating leverage to strengthen further. JM Financial estimates Nykaa’s EBITDA margin to expand by over 155 basis points year-on-year, reaching 7.1% in Q2FY26.
The company’s improved cost discipline, reduced advertising expenditure, and better consumer sentiment are also contributing to a more efficient growth model.
Nykaa’s Long-Term Story Looks Strong
Industry watchers believe Nykaa’s ongoing diversification—from beauty to fashion and lifestyle—positions it well for sustained growth. The company’s omnichannel strategy, brand partnerships, and international expansion plans, including its recent UK debut, signal a confident next chapter for the e-commerce major.
If Nykaa maintains its current momentum, 2025 could become its most successful year since listing. The company’s ability to balance innovation with profitability has reassured investors that its growth story is far from over.
Key Highlights
- Nykaa shares jump 10.6% this week, marking the largest gain in 14 months.
- Year-to-date return hits 62%, poised for biggest annual rise since listing in 2021.
- Fashion vertical shows strong recovery, with NSV growth in the high mid-twenties.
- BPC segment continues double-digit growth, driven by premium brands.
- Analysts project EBITDA margin expansion to 7.1% in Q2FY26.
Disclaimer
Nykaa’s remarkable rally this week signals renewed investor faith in its growth trajectory. With fashion gaining pace, beauty maintaining its lead, and margins improving steadily, the company is scripting one of its strongest comeback stories since going public.
This article is for informational purposes only. The opinions expressed are those of market analysts and not of The Chandigarh News. Investors are advised to consult certified financial experts before making any investment decisions.