Nykaa (FSN E-Commerce Ventures Limited) has announced a significant development in its equity structure. The company, a prominent player in India's e-commerce beauty and fashion space, has allotted 664,160 equity shares to employees under its Employee Stock Option Scheme (ESOS).

Key Details of the Allotment

The allotment, which took place on November 15, 2025, was approved by the company's Nomination and Remuneration Committee. This move comes as part of Nykaa's ongoing efforts to incentivize and retain talent within the organization.

Impact on Share Capital

The newly allotted shares will have equal rights and privileges as the existing equity shares of the company. This includes voting rights and dividend entitlements. The allotment may have a minor dilutive effect on the company's share capital structure.

Regulatory Compliance

Nykaa has submitted this information to the stock exchanges in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. This ensures transparency and keeps investors informed about changes in the company's capital structure.

Significance for Employees and Investors

For Nykaa's employees, this allotment represents an opportunity to participate in the company's growth and success. It aligns the interests of the employees with those of the shareholders, potentially boosting motivation and retention.

For investors, while the allotment might lead to a slight dilution in shareholding, it also signals the company's commitment to attracting and retaining talent, which is crucial in the competitive e-commerce sector.

As Nykaa continues to evolve in the dynamic Indian e-commerce landscape, such moves underscore its focus on employee welfare and long-term growth strategies. Investors and market watchers will likely keep a close eye on how this development impacts the company's performance and market position in the coming months.

Nykaa (FSN E-Commerce Ventures Limited) has delivered strong financial results for the second quarter of fiscal year 2026, marking significant growth across key metrics and demonstrating continued momentum in its beauty and fashion verticals.

Key Financial Highlights

• Gross Merchandise Value (GMV): INR 4,744.00 crores, up 30% year-on-year
• Net Revenue: INR 2,346.00 crores, growing 25% year-on-year
• Gross Profit: INR 1,054.00 crores, increasing 28% year-on-year with a 44.9% margin
• EBITDA: INR 159.00 crores, surging 53% year-on-year with a 6.8% margin
• Profit After Tax (PAT): INR 33.00 crores, up 154% year-on-year

Segment Performance

Beauty Business

• GMV growth of 28% year-on-year
• Net Sales Value (NSV) of INR 1,981.00 crores for Q2
• EBITDA margin improved to 9.0%, up 40 basis points from the previous year

Fashion Vertical

• GMV growth of 37% year-on-year, reaching INR 1,180.00 crores
• NSV growth of 27% year-on-year, amounting to INR 346.00 crores
• Significant EBITDA improvement, from -9.0% to -3.5%

Operational Highlights

• Cumulative customer base reached 49 million, growing 32% year-on-year
• Beauty store network expanded to 265 stores across 90 cities, with 19 new stores opened in Q2
• Nykaa Now service operational in 53 stores across 7 cities, delivering 70% of orders within the next day in top 110 cities

Strategic Developments

1. Brand Ambassador: Nykaa welcomed Deepika Padukone as its brand ambassador, aligning with the modern Indian consumer's outlook.

2. International Expansion: Kay Beauty, one of Nykaa's owned brands, has shown strong performance in the UK market through its partnership with Space NK.

3. New Brand Partnerships: Nykaa Fashion announced a partnership with H&M, set to debut on the platform soon, offering the entire H&M assortment for India across categories.

4. House of Brands Growth: Nykaa's owned brands business reached an annualized GMV run rate of INR 2,900.00 crores, growing at 54% year-on-year.

5. Focus on Gen Z: Nykaa has launched several initiatives targeting Gen Z consumers, including a Campus Ambassador Programme and immersive on-ground events at college campuses.

6. Beauty Technology: The company introduced new tech features like a skin analyzer tool and beauty portfolio to enhance personalized recommendations and improve conversion rates.

Management Commentary

Falguni Nayar, Executive Chairperson, MD and CEO of Nykaa, stated, "We are delighted to report our highest year-on-year growth in the last 6 quarters, with consistent mid-20s growth since the last 12 quarters. Our focus on both penetration and premiumization is paying off, as reflected in our strong customer acquisition and improved margins."

Anchit Nayar, Executive Director and CEO of Beauty at Nykaa, highlighted the success of their omnichannel strategy and the growing importance of the fragrance category, stating, "Fragrance is one of our fastest-growing categories, and we're about to open fragrance-only stores called Nykaa Perfumery in key metros."

Adwaita Nayar, Executive Director and CEO of Nykaa Fashion, emphasized the success of their owned brands, saying, "Our House of Brands business has reached INR 2,900 crores of annualized GMV run rate, growing at 54% year-on-year."

Outlook

With strong growth across verticals, improved profitability, and strategic initiatives in place, Nykaa appears well-positioned for continued expansion. The company's focus on customer acquisition, brand partnerships, and technological innovations is expected to drive further growth in the coming quarters.

As Nykaa continues to strengthen its position in the beauty and fashion e-commerce space, investors and industry observers will be keen to see how the company leverages its current momentum to capture a larger share of the growing Indian market.