Nykaa has completed the acquisition of an additional 24.2% equity stake in Earth Rhythm Private Limited, a subsidiary of the company. The transaction was finalized on September 5, 2026.

The Board of Directors of FSN E-Commerce Ventures Limited had approved the further increase in shareholding not exceeding 24.2% in Earth Rhythm during its meeting on May 21, 2026. The company disclosed the completion under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Transaction Details

The company confirmed that all necessary transaction and procedural documents for the shareholding increase have been executed. The corresponding equity shares have been credited to the company's demat account.

This move consolidates Nykaa's control over Earth Rhythm, which operates within the beauty and personal care sector. The disclosure was signed by Dr. Chetan Sharma, Company Secretary & Compliance Officer.

Shareholders of Nykaa approved the company’s standalone and consolidated audited financial statements for FY26 during its 14th Annual General Meeting on August 25, 2026. The virtual meeting also saw the re-appointment of directors Sanjay Nayar and Milan Khakhar.

The meeting, chaired by Executive Chairperson Falguni Nayar, concluded with the approval of ordinary resolutions regarding financials, director re-appointments, and statutory auditor fees. Walker Chandiok & Co. LLP was appointed as statutory auditors.

Financial Performance

Nykaa crossed the ₹10,000 crore revenue milestone in FY26, reporting total revenue of ₹10,022 crore, a 26% increase from ₹7,950 crore in FY25. Profitability metrics showed significant improvement, with EBITDA rising 59% to ₹752 crore and net profit (PAT) surging 183% to ₹204 crore from ₹72 crore in the previous year.

Capital efficiency improved notably, with Return on Capital Employed (ROCE) jumping to 21.2% from 11.3% in FY25. Fixed asset turnover increased to 9.9x from 9.1x, while working capital days reduced to 28 days from 34 days. The company also reported a 47% year-on-year reduction in net debt.

Business Segment Highlights

The company’s Gross Merchandise Value (GMV) reached ₹20,000 crore in FY26, up from approximately ₹15,600 crore in FY25. The beauty omnichannel retail segment recorded Net Sales Value (NSV) of ₹8,504 crore, growing four times over five years. Nykaa Fashion NSV reached ₹1,447 crore, achieving EBITDA breakeven in Q4FY26. House of Nykaa NSV stood at nearly ₹1,900 crore, while Superstore by Nykaa GMV grew 26% to ₹1,187 crore.

Strategic Outlook and Infrastructure

Nykaa plans to expand its rapid delivery service, Nykaa Now, to top 25+ cities by FY27 and achieve next-day delivery for 90% of orders across 19,000 pincodes by FY30. The beauty store network expanded to 313 stores across 99 cities, covering 3.1 lakh square feet. Technology investments included AI-powered tools like Ask Nykaa and Virtual Closet, with over 480,000 virtual avatars created since May 2026.

Governance and Voting Results

Members voted to approve the adoption of standalone and consolidated audited financial statements for the year ended March 31, 2026. Sanjay Nayar and Milan Khakhar were re-appointed as directors upon retirement by rotation. Walker Chandiok & Co. LLP was appointed as statutory auditors. There were no qualifications or adverse remarks in the statutory or secretarial audit reports.

The scrutinizer’s report confirmed that all ordinary resolutions were passed with requisite majority. Promoter and Promoter Group shareholders held 1,491,392,142 equity shares as on the cut-off date of August 18, 2026, and voted in favor of all resolutions.

Resolution Details

Public institutional investors showed significant dissent on the director re-appointments. For Sanjay Nayar’s re-appointment, 12.28% of polled votes from public institutions were cast against. For Milan Khakhar, 27.88% of polled votes from public institutions were against. However, both resolutions passed due to overwhelming support from the promoter group and sufficient overall majority.

What the Numbers Show

The divergence between GMV growth and revenue growth highlights margin expansion efforts. While GMV grew significantly, revenue grew 26%, but EBITDA grew at a faster 59% pace, indicating improved operational leverage and monetization efficiency across its diversified business lines.