Nykaa Q2 Update - Strong Growth Across Beauty and Fashion

FSN E-Commerce Ventures, the parent company of Nykaa, [

] reported strong growth momentum across its Beauty and Fashion businesses in Q2 FY27. Beauty Continues to Show Strong Momentum Nykaa’s Beauty business continued to benefit from omnichannel growth, supported by new customer additions and repeat engagement. The company added 14 net-new stores during the quarter, taking its total store count to 338 as of September 30, 2026. Like-for-like store sales growth was in the low 20s, marking the strongest performance in the last six quarters. The House of Nykaa portfolio also continued to grow faster than the overall Beauty business, providing another potential growth lever. Fashion Could Be the Bigger Growth Driver The Fashion vertical appears to be gaining momentum, with NSV growth expected in the early 40s and net revenue growth in the low 40s during Q2 FY27. Customer acquisition remained strong, while more than 250 brands were added across categories during the quarter. Nykaa’s partnership with Nike also continued to gain traction, supported by exclusive product drops. This suggests that Fashion is increasingly becoming an important contributor to the company’s overall growth profile. Festive Timing Could Shift Some Growth to Q3 One factor investors should keep in mind is the festive-season calendar. My View The Q2 update is encouraging because growth is coming from both sides of Nykaa’s business, with Beauty maintaining strong momentum while Fashion is growing at a much faster pace. However, investors also need to look beyond growth percentages. Nykaa’s market capitalisation is around ₹95,938 crore, while the stock is trading at a very high reported P/E of 363.33. The stock has also gained around 41% over the past year. At these valuations, strong growth is increasingly an expectation rather than a surprise. The company will therefore need to sustain high growth while improving monetisation and profitability to justify the premium valuation.