Nykaa Q2 FY26 Profit Surges 244% to ₹34.4 Crore on Strong Revenue Growth

FSN E-Commerce Ventures Ltd, operating as Nykaa, announced its financial results for the second quarter of fiscal year 2026, ending September 2025. The company posted a net profit of ₹34.4 crore, a remarkable 244% jump from ₹10 crore in the same quarter last year. Revenue from operations climbed 25.1% year-on-year to ₹2,346 crore, fueled by strong momentum in its beauty division and a positive revival in the fashion segment.

Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew by 53% to ₹158.5 crore from ₹103.6 crore a year ago. The EBITDA margin improved to 6.7% from 5.5%, indicating better operational efficiency. Consolidated Gross Merchandise Value (GMV) reached ₹4,744 crore, up 30% year-on-year, with gross profit rising 28% to ₹1,054 crore, marking the highest gross margin in 12 quarters. This quarter also marks the twelfth consecutive quarter of mid-20s percentage growth in revenue.

The beauty business showed strong growth with GMV up 28% to ₹3,551 crore, supported by e-commerce, physical retail, and owned brands. Nykaa expanded its beauty store footprint to 265 stores. The House of Nykaa brands achieved an annualised GMV run rate of ₹2,900 crore, a 54% increase. Dot & Key, its D2C skincare brand, reported an annualised GMV run rate exceeding ₹1,500 crore with over 110% year-on-year growth.

Nykaa Fashion continued its recovery, with GMV growing 37% year-on-year to ₹1,180 crore. The fashion business saw its EBITDA margin improve significantly from negative 9% to negative 3.5%. Overall profitability was boosted by an increased share of House of Nykaa brands and scale efficiencies.

Impact: This strong financial performance is expected to positively influence investor sentiment towards Nykaa. The consistent growth across segments, improved margins, and successful expansion of owned brands indicate a healthy business trajectory. The revival in fashion and sustained strength in beauty suggest continued market leadership and growth potential. The company's ability to scale its private labels and D2C brands, alongside its B2B operations, presents a diversified growth strategy. This can lead to a positive stock performance and attract further investment. Rating: 7/10

Difficult Terms: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation): A measure of a company's operating performance, showing profit before accounting for interest expenses, taxes, and non-cash charges like depreciation and amortisation. GMV (Gross Merchandise Value): The total value of all goods sold through a company's platform over a specific period, before any deductions for discounts, returns, or fees. Basis Points: A unit equal to one-hundredth of one percent (0.01%). For example, a 100 basis point increase means a 1% increase.