Nykaa delivered strong financial performance in FY26, with revenue crossing the ₹10,000 crore mark and EBITDA growing 59% to ₹752 crore. The company reaffirmed its aggressive operational targets for FY30, aiming to scale GMV by 2.5-3 times and expand EBITDA by 4-5 times.

FY26 Financial Performance

The beauty and lifestyle retailer demonstrated significant operating leverage in FY26. Revenue grew 26% to over ₹10,000 crore, while EBITDA expanded disproportionately to ₹752 crore, pushing margins from 6% to 7.5%. This efficiency drove net profit (PAT) nearly triple to ₹204 crore, with PAT margin doubling to 2%.

Capital efficiency also improved markedly. Fixed asset turnover rose to 9.9 times, supported by asset-light businesses like Fashion and House of Nykaa. Working capital days reduced from 34 to 28 days due to tighter inventory and receivables management. Consequently, ROCE doubled from 11.3% to 21.2%, aided by a 47% reduction in net debt.

Strategic Targets for FY30

Nykaa projects substantial scale-up in both gross merchandise value (GMV) and profitability over the next four years. The company aims to deliver 90% of its orders on the same or following day across 19,000 pin codes by the end of FY30.

Segment Highlights

Beauty: The core vertical saw NSV grow 4x to over ₹8,500 crore, with GMV reaching approximately ₹15,000 crore. The omnichannel network expanded to 313 stores across 99 cities. Nykaa Now, the rapid delivery service, is available in 13 cities and will expand to over 25 by year-end.

Fashion: Nykaa Fashion achieved EBITDA breakeven in Q4 FY26, a significant milestone after scaling NSV 6x to nearly ₹1,450 crore. EBITDA margins improved from negative 11.3% to negative 2.6% over five years. The platform now serves 11 million customers.

House of Nykaa: The private label portfolio scaled 8x in GMV to approximately ₹3,200 crore. New launches contributed around 25% of FY26 GMV for key brands like Nykaa Cosmetics and Kay Beauty.

Superstore: The eB2B platform grew nearly 4x in three years to ₹1,200 crore GMV. EBITDA margins improved by 3,500 basis points over the same period, serving nearly 5 lakh retailers.

What the Numbers Show

The disparity between the projected GMV growth (2.5-3x) and EBITDA expansion (4-5x) suggests a strategic focus on operating leverage. By accelerating delivery timelines and optimizing working capital—evidenced by the reduction in working capital days from 34 to 28—Nykaa intends to drive efficiency that outpaces top-line volume growth. The doubling of ROCE to 21.2% alongside a 47% drop in net debt indicates that recent profitability gains are not just operational but also structural, driven by better capital deployment.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE388Y01029/ed378292-53b3-4cb4-a0ed-e5f3f3df64d1.pdf

Nykaa reported a consolidated net profit of ₹80 crore for the quarter ended June 30, 2026, marking a 226% year-on-year increase from ₹24 crore in Q1FY26. The significant profit surge was primarily fueled by a 123 basis point expansion in gross margin to 45.9% and improved operating leverage, which allowed pre-tax profits to nearly triple despite higher fulfillment costs. Revenue from operations climbed 29% to ₹2,782 crore, driven by robust growth in its core beauty segment and the first-ever positive EBITDA contribution from the fashion vertical. This performance underscores Nykaa’s successful premiumization strategy and efficient cost management, delivering substantial value to shareholders through enhanced profitability.

The financial results were reviewed by statutory auditor S.R. Batliboi & Associates LLP and approved by the Board on August 04, 2026, in compliance with Regulation 33 and Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In a strategic move to expand its portfolio, the Board approved the acquisition of a 51% equity stake in Aminu Wellness Private Limited for a consideration of up to ₹32 crore. The transaction is not classified as a related-party deal and is expected to close by September 15, 2026, subject to regulatory approvals.

Consolidated Financial Performance

The Group’s total income stood at ₹2,791.31 crore, compared to ₹2,164.27 crore in the previous year’s corresponding quarter. Total expenses increased to ₹2,662.15 crore from ₹2,120.56 crore, primarily due to higher purchases of traded goods and employee benefits. Gross profit rose 33% to ₹1,276 crore, while EBITDA jumped 68% to ₹236 crore. Earnings per share (basic) rose to ₹0.28 from ₹0.08 in Q1FY26.

Segment-Wise Breakdown

The Beauty segment remained the primary growth engine, contributing ₹2,516.33 crore to revenue, up from ₹1,975.37 crore in Q1FY26. The segment delivered a result before exceptional items of ₹159.10 crore, significantly higher than the ₹96.28 crore reported last year. The Fashion segment saw revenue rise to ₹252.63 crore from ₹170.83 crore, delivering positive EBITDA for the first time, marking a turnaround from a loss position in previous quarters. The 'Others' segment, comprising international beauty business, contributed ₹13.04 crore to revenue.

What the Numbers Show

The disproportionate rise in net profit (226%) compared to revenue growth (29%) indicates improved operational leverage and margin expansion. While expenses grew by 26%, they lagged behind revenue growth, allowing pre-tax profits to nearly triple. The Beauty segment’s contribution to segment results increased by 65% YoY, highlighting successful premiumization strategies and efficient cost management in the core business unit. Marketing and S&D expenses as a percentage of revenue declined by 42 basis points to 14.8%, reflecting better efficiency in performance marketing spends.

Operational Highlights

Key operational metrics showed robust engagement across platforms. Visits to the Beauty platform grew 22% YoY to 500 million, while Fashion visits surged 28% to 211 million. Annual Unique Transacting Customers (AUTC) for Beauty rose 25% to 20.8 million. The company added 11 new physical stores in the quarter, bringing the total store count to 324. Retail space expanded 29% YoY to approximately 3.3 lakh sq. ft., with double-digit same-store sales growth reported. The launch of Rare Beauty and exclusive partnerships with Unilever Prestige and P&G brands further strengthened the assortment engine.

Acquisition Details

Aminu Wellness Private Limited, engaged in the manufacture and sale of skincare cosmetics, reported a turnover of ₹19.44 crore in FY2025-26, up from ₹12.96 crore in FY2024-25. Nykaa cited Aminu’s strong R&D capabilities and omnichannel distribution as key reasons for the acquisition. The Aminu team, led by Prachi Bhandari and Aman Mohunta, will continue to run the business. The remaining 49% stake will be acquired over the next few years, as per terms set out in the transaction documents.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE388Y01029/9691635e-701e-40c9-b9fc-fe2721cbb602.pdf