Nykaa's fashion arm outpaces beauty with growth in late forties, Q2 update shows
AI-generated illustration
Advertisement
Nykaa's October 4, 2026 update says fashion NSV is set to grow in the late forties per cent in Q2 FY27, ahead of beauty's late twenties, as stores reach 338.
What Happened
Nykaa's fashion business is growing much faster than its beauty business, according to a provisional business update for the July to September 2026 quarter that its parent company, FSN E-Commerce Ventures, released on October 4, 2026. The company said it expects net sales value (NSV) for fashion to grow in the late forties per cent from a year earlier, with fashion net revenue growing in the early forties. Beauty, its larger and older business, is expected to grow NSV and net revenue in the late twenties. Across the company, Nykaa expects gross merchandise value (GMV) to rise in the high twenties and net revenue in the late twenties. It added 14 net new stores in the quarter, taking its total to 338 as of September 30.
Key Facts
- The provisional update for Q2 FY27 (July to September 2026) was released on October 4, 2026; final results are still to come.
- Fashion: NSV growth expected in the late forties per cent and net revenue growth in the early forties.
- Beauty: NSV and net revenue growth both expected in the late twenties.
- Company-wide: GMV growth expected in the high twenties, NSV in the early thirties and net revenue in the late twenties.
- Nykaa added 14 net new stores in the quarter, reaching 338 stores at September 30, 2026.
- The update gives growth ranges, not exact rupee figures or profit numbers.
Why It Matters
Nykaa, founded by Falguni Nayar, is one of India's best-known businesses built by a woman founder, and it is often seen as a test of whether specialist online retail can scale profitably in India. Beauty built the brand. Fashion, which sells clothing, footwear and accessories, is the newer bet. A quarter in which fashion grows almost twice as fast as beauty suggests that its push into fashion is gaining ground.
The numbers also say something about Indian shoppers. Strong growth in both segments suggests that urban consumers, many of them women, are still spending on personal style. The continued opening of physical stores, now 338 of them, reflects a wider trend of online-first brands adding shops to reach customers who want to try products before buying.
For women building careers or businesses in fashion and beauty, the update is a useful signal. Growth on a large platform creates demand for designers, small labels, content creators, store staff and logistics partners who supply and support it.
There is a caveat. A provisional update is a guide, not a full result. Profit, margins and exact revenue will only be known when the company publishes its audited quarterly results, and different readings of the growth ranges have circulated.
| Segment (Q2 FY27, provisional) | Expected growth, year on year |
|---|---|
| Fashion NSV | Late forties per cent |
| Fashion net revenue | Early forties per cent |
| Beauty NSV and net revenue | Late twenties per cent |
| Company net revenue | Late twenties per cent |
| Stores at September 30 | 338 (14 net new) |
Impact
Short-term: Investors and rivals will watch whether the final Q2 results confirm the faster fashion growth and whether it comes with better or weaker margins.
Long-term: If fashion keeps growing at this pace, it could become a much larger share of Nykaa's business and strengthen its position against bigger online marketplaces.
Who is affected: Nykaa's customers and shareholders, fashion and beauty brands that sell through the platform, store employees, and competing retailers.
Key Takeaway
Nykaa's October 4, 2026 update shows its fashion arm growing in the late forties per cent, far faster than beauty, as the company reached 338 stores.
Questions and Answers
What did Nykaa say about its Q2 FY27 performance?
In a provisional update on October 4, 2026, Nykaa said it expects net revenue to grow in the late twenties per cent, with fashion growing faster than beauty.
How fast is Nykaa's fashion business growing?
Fashion net sales value is expected to grow in the late forties per cent year on year, and fashion net revenue in the early forties.
How many stores does Nykaa have?
Nykaa had 338 stores as of September 30, 2026, after adding 14 net new stores during the quarter.
Are these final results?
No. The update is provisional and gives growth ranges only; audited results with profit figures are still to be published.
Sourced and fact-checked by the Peepals Global Editorial Team
El Niño puts 347 million children at risk, UNICEF warns; 190 million in Asia
Justice Sunita Agarwal joins Supreme Court, taking women judges to three
Reported, fact-checked and published by the Peepals Global Editorial Team.
Advertisement
