New Delhi, November 5: FSN E-Commerce Ventures, the parent company of beauty and fashion platform Nykaa, reported a strong financial performance for the second quarter of the financial year 2026-27, with consolidated profit after tax rising 207 per cent year on year to Rs 101 crore.
The company had recorded a profit of approximately Rs 33 crore in the corresponding quarter of the previous financial year. Revenue from operations increased 28 per cent to Rs 3,006 crore in the September quarter, compared with Rs 2,346 crore a year earlier.
The results, announced on November 4, reflected stronger consumer demand, improved operating efficiency and expansion across Nykaa’s beauty, fashion and distribution businesses.
The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 65 per cent to Rs 263 crore from Rs 159 crore in the year ago period. EBITDA margin also improved to 8.7 per cent from 6.8 per cent.
Gross margin expanded by 106 basis points to 46 per cent, supported by the growing contribution of its in-house brands and higher marketing income.
The performance indicates that Nykaa is making progress in balancing business expansion with profitability as competition intensifies across India’s online beauty and fashion retail market.
Beauty Business Remains the Biggest Growth Driver
Nykaa’s beauty division continued to contribute significantly to the company’s overall performance.
The vertical recorded gross merchandise value (GMV) of Rs 4,454 crore during the September quarter. Net sales value increased 28 per cent year-on-year, while EBITDA grew 51 per cent.
The company continued to expand its product portfolio by introducing more than 330 international, national and emerging beauty brands during the year.
Recent additions included Yves Rocher, Oribe, Mamonde, MEDIHEAL, &honey and Purito Seoul, strengthening the platform’s international product selection.
The expansion reflects Nykaa’s strategy of attracting customers through a combination of established global labels, emerging Indian brands and premium beauty products.
The company is also investing in consumer engagement through events and beauty-related experiences.
Its fourth edition of Nykaaland brought together beauty enthusiasts, international brands, Indian labels, celebrities and industry professionals.
Across four editions, the event has attracted more than 100,000 beauty enthusiasts and hosted over 50 masterclasses conducted by Indian and international beauty experts.
Such initiatives are intended to strengthen consumer relationships while creating additional opportunities for brands to showcase their products.
Nykaa Now Expands Quick-Commerce Operations
Quick commerce has become an increasingly important part of the beauty retailer’s expansion strategy.
Nykaa’s rapid-delivery service, Nykaa Now, expanded its presence to 15 cities during the reporting period. The company plans to increase its reach to more than 25 cities by the end of FY27.
The platform offers over 1,000 beauty, personal care and wellness brands, with delivery timelines ranging from 30 to 60 minutes.
According to the company, its assortment provides more than twice the beauty and personal care product selection available on general quick-commerce platforms.
Nykaa said the average order value on Nykaa Now was three times the beauty and personal care category average on quick-commerce platforms. Purchase frequency was also 15 per cent higher than on its main platform.
The expansion is aimed at attracting consumers who want premium beauty products delivered quickly without compromising on product selection.
However, the business will need to maintain delivery efficiency and manage fulfilment expenses as it enters additional cities.
Retail Network Crosses 338 Stores
Alongside its digital operations, Nykaa is continuing to strengthen its physical retail presence.
The company’s beauty retail network expanded to 338 stores across 111 cities after the addition of 14 outlets during the September quarter.
Its total retail space increased 26 per cent year-on-year to more than 3.4 lakh square feet.
The network includes multi-brand beauty stores, exclusive outlets for its in-house labels and experiential retail formats.
The company operates 253 multi-brand outlets, 69 House of Nykaa stores and 16 exclusive brand experience outlets.
The expansion reflects its omnichannel strategy, which combines online shopping with physical stores to improve product discovery and customer engagement.
Physical outlets also provide customers with opportunities to test products, receive beauty advice and explore premium brands before making purchases.
House of Nykaa Strengthens Its Own-Brand Portfolio
Nykaa’s in-house brand portfolio continued to record healthy growth during the quarter.
House of Nykaa crossed an annualised gross merchandise value run rate of Rs 4,000 crore, while its annualised net sales value exceeded Rs 2,300 crore.
The portfolio recorded 36 per cent year-on-year growth in net sales value and has served more than 19 million customers.
The company has been investing in product innovation, packaging and formulation development to strengthen its owned brands.
Dot & Key introduced additional shades of its tinted sunscreen and launched a new Dragon Fruit Jelly Bounce Moisturizer.
Kay Beauty expanded into skincare, while Nykaa Cosmetics continued introducing new makeup products and collaborations.
The growing contribution of owned brands is particularly important because it allows the company to develop differentiated products and strengthen control over its product portfolio.
The improvement in gross margins also reflects the increasing importance of these brands in Nykaa’s overall business model.
Fashion Division Records 47% Growth
Nykaa’s fashion business delivered another strong performance, with net sales value increasing 47 per cent year-on-year to Rs 509 crore.
The segment also achieved a positive EBITDA margin of 0.2 per cent during the September quarter, compared with a negative margin of 3.5 per cent in the corresponding period last year.
The improvement marks an important development for the fashion division, which has been working towards strengthening its premium positioning and improving operating efficiency.
During the quarter, Nykaa introduced Nykaa Fashion LUXE, a dedicated shopping destination featuring international luxury labels and leading Indian designer brands.
The offering includes fashion, accessories, jewellery, watches and home products.
The company also introduced more than 250 brands during the quarter, including the exclusive launch of COS.
The division’s progress towards positive operating profitability could become an important contributor to the group’s future earnings.
Nykaa to Acquire 82% Stake in Simply Nam
Alongside its quarterly results, Nykaa announced a strategic acquisition to strengthen its presence in the specialised makeup market.
The company’s board approved the purchase of an 82 per cent equity stake in Simply Nam Beauty Private Limited for consideration of up to Rs 33 crore.
Simply Nam was founded in 2020 by celebrity makeup artist Namrata Soni and Bozzil, a venture studio led by Hanna Strömgren Khan.
The brand combines professional makeup expertise with clinically tested formulations designed around consumer requirements.
Following completion of the transaction, Namrata Soni will retain an 18 per cent stake and continue as co-founder and Chief Product Officer.
The acquisition is expected to strengthen Nykaa’s House of Nykaa portfolio by adding a specialised makeup brand focused on professional-grade products.
The company intends to use its distribution network, consumer reach and retail infrastructure to expand the brand’s market presence.
The transaction is expected to be completed in the third quarter of FY27, subject to regulatory approvals and other closing conditions.
Partnership With L’Oréal to Support Emerging Brands
Nykaa also strengthened its relationship with French beauty major L’Oréal through a collaboration involving its corporate venture capital fund, BOLD.
The partnership will focus on investing in high-growth Indian beauty and personal care brands.
Nykaa will contribute its retail network, consumer ecosystem and distribution capabilities, while L’Oréal will provide international industry expertise, mentorship and strategic support.
The initiative aims to help emerging brands expand their businesses while allowing founders to retain operational and creative control.
The collaboration could provide additional opportunities for Indian beauty businesses seeking access to larger markets and established industry networks.
Management Confident About Long-Term Growth
Nykaa Executive Chairperson, Founder and Chief Executive Officer Falguni Nayar said the company’s performance reflected the strength of its overall business ecosystem.
She highlighted improvements in operational efficiency, particularly in marketing and overhead expenses, while pointing to accelerated growth in the beauty and fashion divisions.
The management remains focused on expanding owned brands, strengthening quick-commerce operations and building differentiated retail experiences.
The company is also seeking to improve the contribution of its distribution business while increasing the reach of its premium product portfolio.
Outlook
Nykaa’s September-quarter performance highlights the benefits of combining digital retail, physical stores, proprietary brands and distribution operations.
The 207 per cent increase in profit and 28 per cent revenue growth indicate that the company is gaining from improved business activity and better operating margins.
Its proposed investment in Simply Nam and collaboration with L’Oréal further demonstrate its intention to expand beyond traditional online retail.
Going forward, the company’s ability to maintain customer growth, manage expansion costs and improve profitability across its fashion and beauty operations will remain important.
With quick commerce, premium products and in-house brands emerging as major areas of investment, Nykaa is positioning itself for a larger role in India’s expanding beauty and personal care industry.