Nykaa Share Price Rises 2% After Q1 Business Update Shows Positive Growth

Nykaa’s share price rose in early trade on Tuesday after the company released its first-quarter business update for FY25. According to The Mint, shares of the beauty and fashion e-commerce platform climbed 2% to trade at INR 202.87 on the NSE.

The stock opened at ₹200.90 on July 7, up from the previous close of ₹198.23. Over the past six months, Nykaa’s share prices have gained 18%. In the last year, it has risen by 14.47%.

Strong GMV Growth Fuels Optimism

In its Q1 update, the e-commerce platform reported high year-on-year growth in GMV across both its beauty and fashion segments. GMV growth is expected to go beyond the mid-20 percent range. Nykaa’s GMV growth was supported by strong order volumes and healthy customer engagement across platforms.

The beauty segment, which remains Nykaa’s core revenue driver, continued to perform well and maintained industry-leading margins. Meanwhile, the fashion vertical showed signs of recovery, aided by brand partnerships and new launches. The company said it will continue focusing on strengthening its product mix and driving efficiency in operations.

In a filing on July 6th, the company said, “Nykaa’s Beauty vertical is expected to deliver GMV growth in higher mid-twenties. This was despite disruption on account of geo-political tensions that led to softer sentiment during the Q1’s Flagship Sale, causing some loss of business. The strong growth came on the back of solid performance across all businesses, including e-commerce platform, retail stores, eB2B distribution and the House of Nykaa brands. House of Nykaa brands continued its accelerated growth trajectory with strong performance of home-grown as well as acquired brands.”

Nykaa’s Q1 Update Impresses Investors

Due to the positive update, Nykaa’s stock jumped as investors welcomed signs of margin stability and operational discipline. Market experts noted that while some concerns remain about the fashion segment’s profitability, the beauty vertical’s consistent performance offers a cushion to the stock.

Brokerages also noted that customer stickiness remains high, which is crucial for growth in the digital-first retail segment. Nykaa’s focus on improving delivery times and expanding in Tier 2 and Tier 3 cities has contributed positively.

This rise in Nykaa’s share price also aligns with broader market momentum, as investors increasingly bet on digital and consumer-focused companies showing strong fundamentals.

The company also said in the filing, “Nykaa’s Fashion vertical is expected to deliver GMV growth of mid-twenties, marking a strong improvement over the previous quarters. This performance was driven by improving traction in the core platform business, supported by an expanding assortment and robust customer acquisition.”

The current gains in Nykaa’s shares are being driven by two major factors, robust GMV expansion and cost efficiency in the beauty segment. Moreover, with Nykaa aiming to achieve breakeven in the fashion business by FY26, investor sentiment around long-term growth prospects is gradually improving.