Nykaa’s Profit Jumps 3X to Rs 101 Cr in Q2 FY27; Revenue Grows 28%

FSN E-Commerce Ventures, the parent company of beauty and fashion retailer Nykaa, reported a strong financial performance for the second quarter of FY27, with consolidated net profit increasing 207% year-on-year to ₹101.19 crore. The company had reported a net profit of ₹32.98 crore in the corresponding quarter last year. Revenue from operations rose 28.1% to ₹3,006.04 crore, compared with ₹2,345.98 crore in Q2 FY26.

The September-quarter performance was supported by strong demand in the beauty business, accelerating fashion sales, improved operating efficiency and expansion of its retail network. EBITDA increased 65% to ₹263 crore, while the EBITDA margin expanded to 8.7% from 6.8% a year earlier. Nykaa also announced plans to acquire an 82% stake in premium makeup brand Simply Nam Beauty for up to ₹33 crore, strengthening its portfolio of owned beauty brands.

Nykaa Q2 FY27 Financial Results

Nykaa’s profitability improved significantly during the quarter, with net profit growing considerably faster than revenue. The company’s gross profit also increased, reflecting stronger business volumes and an improved product mix.

Key financial highlights:

Financial metric	Q2 FY27	Q2 FY26	YoY growth
Revenue from operations	₹3,006 Cr	₹2,346 Cr	28.1%
Gross profit	₹1,382 Cr	₹1,056 Cr	31%
EBITDA	₹263 Cr	₹159 Cr	65%
EBITDA margin	8.7%	6.8%	+190 bps
Net profit	₹101.19 Cr	₹32.98 Cr	207%
Gross merchandise value	₹6,151 Cr	₹4,732 Cr	30%

The company’s operating performance also improved sequentially. Revenue increased from ₹2,782 crore in Q1 FY27, while net profit rose from ₹79.76 crore.

Nykaa’s gross margin improved to 46% from 44.9% in the year-ago quarter. The company attributed the improvement partly to a higher contribution from its House of Nykaa portfolio and increased marketing income.

Beauty Business Continues to Drive Growth

Beauty remained Nykaa’s largest business and an important contributor to its quarterly performance.

The beauty vertical recorded gross merchandise value (GMV) of ₹4,454 crore, increasing 25% year-on-year. Net sales value (NSV) grew 28%, supported by new customer acquisition, repeat purchases and stronger demand for premium beauty products.

The segment’s EBITDA increased 51% year-on-year, while its EBITDA margin improved to 10.5% from 9% in Q2 FY26.

Nykaa added more than 330 beauty brands to its portfolio over the past year, including international and emerging brands from France, Japan, South Korea and the United States.

Some of the new additions included Yves Rocher, Oribe, Mamonde, MEDIHEAL, &honey and Purito Seoul.

The company is also strengthening its position as a distribution partner for international beauty brands entering India. Its strategy combines online distribution, physical retail stores, brand partnerships and marketing through its creator network.

Nykaa reported more than 52 million cumulative beauty customers, representing 31% year-on-year growth.

Fashion Business Records 47% Growth and Turns EBITDA-Positive

Nykaa’s fashion business delivered one of the strongest improvements during the quarter.

The segment’s net sales value increased 47% year-on-year to ₹509 crore. Its GMV rose 42% to ₹1,674 crore.

More importantly, the fashion business turned EBITDA-positive, reporting ₹10 million (₹1 crore) in EBITDA compared with an EBITDA loss of ₹120 million (₹12 crore) in Q2 FY26.

Its EBITDA margin, measured as a percentage of NSV, improved to 0.2% from negative 3.5% a year earlier.

The improvement indicates that the company is making progress in controlling costs while expanding its fashion business.

Nykaa also launched Nykaa Fashion LUXE, a dedicated destination for international luxury brands and premium Indian designers. The offering includes fashion, accessories, jewellery, watches and home products.

The company added more than 250 brands to its fashion portfolio during the quarter, including the exclusive launch of COS.

Nykaa Now Expands Quick-Commerce Operations

Nykaa is also increasing its presence in the fast-growing quick-commerce segment through Nykaa Now.

The service expanded to 15 cities during Q2 FY27, offering more than 1,000 beauty, personal care and wellness brands with delivery timelines of approximately 30–60 minutes.

The company plans to expand Nykaa Now to more than 25 cities by the end of FY27.

Nykaa is positioning the service differently from conventional quick-commerce platforms by focusing on a wider selection of beauty products, premium brands and specialised categories.

According to the company, its assortment offers more than twice the beauty and personal care product selection available on quick-commerce platforms. Its average order value is approximately three times that of the beauty and personal care category on those platforms.

The company also reported a 15% higher purchase frequency for Nykaa Now compared with its main platform.

This strategy could help Nykaa compete in rapid delivery without relying exclusively on discounts or everyday essentials.

Physical Retail Network Reaches 338 Stores

Despite its strong online presence, Nykaa continues to invest in physical retail.

The company added 14 beauty stores during Q2 FY27, taking its total beauty retail network to 338 stores across 111 cities.

The network includes 253 multi-brand outlets, 69 House of Nykaa stores and 16 exclusive brand experience formats.

Its total retail space increased 26% year-on-year to more than 3.4 lakh square feet.

Physical stores are important for beauty retailers because customers often prefer to test products, receive recommendations and experience brands before purchasing.

Nykaa is using its stores alongside its digital platform to strengthen customer engagement and support repeat purchases.

House of Nykaa Crosses ₹4,000 Crore Annualised GMV

Nykaa’s owned-brand portfolio, House of Nykaa, continued to expand during the quarter.

The portfolio crossed an annualised GMV run rate of ₹4,000 crore and an annualised NSV of more than ₹2,300 crore.

Its NSV increased 36% year-on-year, and the portfolio has served more than 19 million customers to date.

Brands under the portfolio include Kay Beauty, Dot & Key and Nykaa Cosmetics.

During the quarter, Dot & Key introduced eight new shades of its tinted sunscreen, alongside a new Dragon Fruit Jelly Bounce Moisturiser. Kay Beauty expanded into skincare and continued strengthening its international presence through retail partnerships in the United Kingdom.

The growth of owned brands is strategically important because it allows Nykaa to build differentiated products and potentially capture greater value across the beauty supply chain.

Nykaa to Acquire 82% Stake in Simply Nam Beauty

Alongside its quarterly results, Nykaa’s board approved the acquisition of an 82% stake in Simply Nam Beauty Private Limited for consideration of up to ₹33 crore.

Founded in 2020, Simply Nam is a premium makeup brand associated with celebrity makeup artist Namrata Soni and venture studio Bozzil.

Following the transaction, Soni will retain an 18% stake and serve as co-founder and chief product officer.

The acquisition will strengthen Nykaa’s presence in specialised and professional-grade makeup products.

The company plans to combine Simply Nam’s product development and formulation capabilities with Nykaa’s distribution network, customer base and omnichannel retail infrastructure.

The transaction is expected to close in Q3 FY27, subject to regulatory approvals and the fulfilment of closing conditions.

Nykaa also strengthened its partnership with L’Oréal’s corporate venture capital fund, BOLD, to jointly invest in high-growth Indian beauty and personal care brands.

Superstore by Nykaa Expands Its Retailer Network

Nykaa’s business-to-business distribution platform, Superstore by Nykaa, reported GMV of ₹328 crore during the quarter.

Its registered retailer network increased 27% year-on-year to more than 5.5 lakh retailers.

The platform distributes beauty, skincare, makeup and wellness products to retailers across India.

Nykaa also introduced Meri Dukan, a personalised shopping experience designed to help retailers identify products for replenishment, discover local demand and access relevant deals.

The expansion of Superstore gives Nykaa another growth channel beyond direct-to-consumer sales.

The Bigger Picture

Nykaa’s Q2 FY27 results highlight the growing scale of India’s organised beauty and personal care market. The company is expanding through several interconnected businesses, including online beauty retail, fashion, physical stores, quick commerce, owned brands and B2B distribution.

The most significant development is the improvement in profitability. Revenue increased 28%, but EBITDA grew 65% and net profit increased 207%. The fashion business also moved into positive EBITDA territory, suggesting that operational improvements are extending beyond the company’s core beauty operations.

At the same time, acquisitions and partnerships are helping Nykaa expand its owned-brand portfolio and strengthen its position in India’s competitive beauty market.

Looking Ahead

Nykaa is expected to continue investing in premium beauty products, quick-commerce expansion, physical retail and international brand partnerships. Its plan to expand Nykaa Now to more than 25 cities by the end of FY27 could provide another growth channel, while the Simply Nam acquisition may strengthen its professional makeup portfolio. The company’s owned brands and B2B distribution business also offer opportunities to increase customer reach and product differentiation.

The key challenge will be sustaining profitability while investing in new stores, technology, marketing and international expansion. Competition from platforms such as Tira, Purplle, Myntra and Ajio will also require continued investment in customer experience and brand partnerships. Nykaa’s latest results suggest that its diversified business model is gaining momentum, but maintaining strong margins alongside rapid growth will be important in the coming quarters.