FSN E-Commerce Ventures Limited, operating as Nykaa, reported a significant surge in profitability for the first quarter of FY27, driven by accelerated revenue growth and margin expansion. The company’s consolidated net profit after tax (PAT) rose 226% year-on-year to ₹80 crore, up from ₹23.3 crore in Q1FY26. This sharp improvement in bottom-line performance reflects enhanced operational efficiency and scale across its beauty and fashion verticals.

Financial Performance Highlights

Nykaa’s total revenue from operations grew 29% year-on-year to ₹2,782 crore in Q1FY27, compared to ₹2,155 crore in the corresponding period last year. Gross profit expanded by 33% to ₹1,276 crore, while EBITDA increased by 68% to ₹236 crore. The EBITDA margin widened to 8.5% from 6.5% a year ago, marking the highest level in the past 12 quarters. Consolidated gross merchandise value (GMV) also climbed 34% to ₹5,590 crore.

The improvement in EBITDA margins indicates that Nykaa has successfully scaled its business while managing costs more effectively. Falguni Nayar, Executive Chairperson and CEO, attributed this to disciplined execution and innovation-led consumer experiences.

Business Verticals Update

The Beauty vertical remained the core driver, with GMV reaching ₹4,105 crore and net sales value (NSV) growing 29% year-on-year. Key launches included Rare Beauty, SK-II, and Judydoll, strengthening the premium portfolio. Nykaa Fashion delivered a standout performance with GMV rising 53% to ₹1,471 crore and NSV increasing 54% to ₹451 crore. Notably, the fashion segment turned EBITDA positive, achieving a 0.1% margin compared to a -6.2% margin in Q1FY26.

Acquisition of Aminu Wellness

In a strategic move to expand its House of Nykaa portfolio, Nykaa acquired a 51% majority stake in Aminu Wellness Private Limited. Aminu, a premium dermocosmetic skincare brand founded in 2019 by Prachi Bhandari and Aman Mohunta, has grown revenues eightfold over three years to reach ₹19 crore in FY26. The brand is profitable and known for its science-first approach and proprietary formulations.

Post-acquisition, the founders will continue to manage operations, with Nykaa planning to acquire the remaining stake over the next few years on pre-agreed terms. This deal reinforces Nykaa’s leadership in the premium skincare segment by integrating Aminu’s R&D capabilities with Nykaa’s omnichannel reach.

What the Numbers Show

The divergence between revenue growth (29%) and net profit growth (226%) highlights a significant leverage effect from operational efficiencies. With EBITDA margins hitting a 12-quarter high at 8.5%, Nykaa is demonstrating that its scale is translating into meaningful profitability rather than just top-line expansion. The turn to positive EBITDA in the fashion segment further signals improving unit economics across key growth drivers.

FSN E-Commerce Ventures has outlined a robust growth outlook for Q1 FY27, projecting GMV/NSV growth of around 30% and net revenue growth close to 30%. The company's performance is expected to be anchored by strong momentum across both its beauty and fashion verticals, with physical retail expansion also contributing to the overall growth narrative.

Growth Projections for Q1 FY27

The company's Q1 FY27 guidance reflects broad-based expansion across its key business segments. The following table summarizes the projected growth metrics:

The beauty segment is projected to grow in the late-20% range, reflecting continued consumer demand in the personal care and cosmetics space. The fashion vertical is anticipated to outpace beauty in relative terms, with NSV growth in the mid-50% range and revenue growth of nearly 50%.

Beauty Retail Expansion

Alongside its digital commerce operations, FSN E-Commerce Ventures has also been expanding its physical retail footprint. The company had 324 beauty stores operational as of June 30, 2026, underscoring its omnichannel strategy in the beauty segment.

The physical store network complements the company's online platform, strengthening its presence in the beauty retail market across consumer touchpoints.

Key Highlights

• GMV/NSV growth projected at around 30% for Q1 FY27
• Net revenue growth expected close to 30% for Q1 FY27
• Beauty sector anticipated to grow in the late-20% range
• Fashion sector projected at mid-50% NSV growth and nearly 50% revenue growth
• 324 beauty stores in operation as of June 30, 2026

The projected figures indicate that both the beauty and fashion segments are expected to be significant contributors to the company's overall Q1 FY27 performance, with fashion demonstrating particularly strong growth momentum on an NSV basis.