Shares of Nykaa’s parent company, FSN Ecommerce, witnessed a surge of over 7 per cent in early trade on 8 April, fueled by expectations of robust growth in the company’s performance for the fourth quarter.
At 1 p.m., Nykaa shares were trading at Rs 180.60 on the NSE, marking a substantial increase of 7.21 per cent, while on the BSE, the stock saw a surge of 7.15 per cent. Trading volumes for Nykaa remained notably high, with 81 lakh shares changing hands on the exchanges so far, significantly surpassing the one-month daily traded average of 50 lakh shares.
In its latest regulatory filing, Nykaa has expressed optimism, projecting a “high twenties” year-on-year growth in revenue for the January-March quarter. The company also reported an “early thirties” growth in Gross Merchandise Value (GMV), reflecting the total value of goods sold through its e-commerce platforms before deductions.
Nykaa attributed its strong performance to robust customer demand, resulting in healthy volume growth across various categories, particularly makeup and skincare.
Specifically in the beauty and personal care segment, Nykaa expects a remarkable year-on-year GMV growth of around 30 per cent, accompanied by a ‘mid-twenties’ increase in net sales value. This anticipated growth outpaces industry trends in this segment, indicating Nykaa’s competitive edge.
Despite subdued industry growth in the fashion segment, Nykaa remains optimistic about its performance in this vertical. The company projects a GMV rise in the “high twenties,” with net sales value growth expected in the “mid-twenties.”
Nykaa’s positive outlook for the fourth quarter reflects its confidence in continued growth momentum and strong customer traction across key product categories. Investors responded favourably to these projections, driving a notable surge in Nykaa’s share price as they await the official financial results for confirmation of the company’s performance.
