Nykaa clocks Rs 101 cr profit in Q2, revenue up 28%
Downloads:
FSN E-Commerce Ventures, the parent of online beauty retailer Nykaa, reported a 207% jump in consolidated net profit to Rs 101.2 crore for the second quarter ended September 2026 (Q2 FY27), compared with Rs 33 crore in the year-ago quarter. The growth was driven by higher sales across beauty and fashion businesses and better EBITDA margins.
Its operating revenue increased 28% to Rs 3,006 crore in Q2 FY27 from Rs 2,346 crore in the same quarter last year on the back of double-digit growth in both beauty and fashion segments.
On a quarter-on-quarter basis, profit surged 27% from Rs 79.8 crore, while operating revenue was up 8% from Rs 2,782 crore.
EBITDA came in at Rs 263 crore, up 65% year-on-year, while EBITDA margin expanded to 8.7% from 6.8% in Q2 FY26.
Nykaa’s gross merchandise value (GMV) grew 30% to Rs 6,151 crore during the quarter under review from Rs 4,744 crore in Q2 FY26.
Alongside the earnings announcement, the company’s board approved the acquisition of 82% stake in 82% stake in Simply Nam, paving the way for Nykaa to enter the premium professional makeup segment.
Founded by celebrity makeup artist Namrata Soni and venture studio Bozzil Group, Simply Nam sells “100% vegan” premium beauty products. The company reported a turnover of Rs 17 crore in FY26, up % from Rs 9.6 crore in FY25.
Beauty remains the profitability anchor
Nykaa’s beauty segment generated Rs 2,699.7 crore in revenue in July-September 2026, up 27% from Rs 2,131.9 crore in the year-ago period. Profit before exceptional items from this segment skyrocketed 71% to Rs 180.2 crore during the quarter, compared with Rs 105.4 crore a year earlier.
Beauty GMV rose 25% YoY to Rs 4,454 crore in the September quarter of FY27, while net sales value (NSV) increased 28% YoY to Rs 2,536 crore. EBITDA jumped 51% to Rs 267 crore.
Nykaa attributed the growth to new customer acquisition, repeat customer engagement, and its expanding retail presence. Monthly average unique visitors (MAUV) rose 30% YoY to 54.1 million in Q2 FY27, while average order value (AOV) increased 5% to Rs 2,149. The company opened 14 new physical stores during the quarter, expanding its network base to 338 stores across 111 cities.
Over the past 12 months, the company has also added over 330 beauty brands to its portfolio, including French beauty brand Yves Rocher, luxury haircare brand Oribe and Korean skincare brand Mamonde.
Its quick commerce arm, Nykaa Now, expanded to 15 cities in Q2 FY27 from just three cities in Q1 FY26. The company is targeting more than 25 cities by the end of the ongoing fiscal year. Nykaa Now delivers beauty, personal care, and wellness assortment within 30-60 minutes.
Fashion vertical’s losses narrow in Q2
Nykaa’s fashion vertical contributed Rs 287.2 crore or 9.5% to overall operating revenue, up 43% from Rs 201 crore in Q2 FY26. While the fashion business remained loss-making, losses before exceptional items narrowed 64% to Rs 7.7 crore during the quarter, compared with Rs 21.4 crore a year earlier.
The fashion business’s GMV soared 42% YoY to Rs 1,674 crore in Q2 FY27, while NSV surged 47% to Rs 509 crore. EBITDA came in at Rs 1 crore versus a negative EBITDA of Rs 12 crore in Q2 FY26.
The company attributed the growth to the continued addition of brands across categories and stronger customer acquisition.
In the fashion segment, Nykaa launched more than 250 new brands across categories in Q2, including UK-based streetwear brand Superdry, Swedish fashion house Totome, Indian home-comfort brand Sleepwell, and Chinese sportswear brand Anta, among others.
Nykaa’s fashion business saw a 25% YoY growth in visits at 239 million, while annual unique transacting users increased 37% to 5.1 million. The platform also recorded 3.3 million orders during the quarter, up 38% YoY, with an AOV of Rs 4,378 crore.
Where did Nykaa spend?
In line with revenue, total expenses climbed 25% to Rs 2,867 crore in the July-September quarter of FY27, compared with Rs 2,297.6 crore in the corresponding quarter of the previous fiscal year. Sequentially, it increased a little under 8% from Rs 2,662.2 crore.
- Procurement cost: This remained Nykaa’s largest cost center, rising 26% to Rs 1,624.3 crore in Q2 FY27 from Rs 1,292.4 crore in the year-ago quarter.
- Fulfilment expense: Surged 34% to Rs 304 crore from Rs 227 crore in Q2 FY26.
- Marketing and S&D cost: Increased 24% to Rs 457 crore in the September quarter of FY27 from Rs 368 crore a year earlier.
- Employee benefits expense: Stood at Rs 220 crore, up 20% from Rs 182.8 crore in Q2 FY26.
In June this year, Nykaa struck a multi-year deal with OpenAI to list its beauty and fashion storefronts as connected apps in ChatGPT, giving users product recommendations directly within the chat before being directed to Nykaa’s app or website to complete a purchase.
Also read:
- Why Nykaa is bullish on its quick commerce play, Nykaa Now
- Nykaa taps OpenAI for conversational shopping across beauty and fashion
The post Nykaa clocks Rs 101 cr profit in Q2, revenue up 28% appeared first on MEDIANAMA.
This content is published by MediaNama and has not been created or edited by Hello Headlines. View original
