Nykaa (FSN E-Commerce Ventures Limited) has announced robust financial results for the first quarter of fiscal year 2026, alongside a strategic acquisition to strengthen its position in the wellness sector.

Q1 FY26 Financial Highlights

Nykaa demonstrated strong growth across key metrics in Q1 FY26:

• Consolidated Gross Merchandise Value (GMV) reached Rs 4,182.00 crore, up 26% year-over-year (YoY)
• Revenue from operations increased by 23% YoY to Rs 2,155.00 crore
• EBITDA grew by 46% YoY to Rs 141.00 crore, with margins expanding to 6.5% from 5.5% in Q1 FY25
• Net profit surged by 79% YoY to Rs 24.00 crore

Business Segment Performance

Beauty and Personal Care

The Beauty vertical showed robust growth, with GMV increasing 26% YoY to Rs 3,208.00 crore. This growth was supported by strong performance across e-commerce, retail stores, eB2B distribution, and the House of Nykaa portfolio. The cumulative beauty customer base expanded to nearly 37 million, reflecting a 29% YoY increase.

Fashion

Nykaa Fashion posted a solid performance with GMV growing 25% YoY to Rs 964.00 crore. The segment also saw significant improvement in profitability, with EBITDA margin narrowing from -9.2% in Q1 FY25 to -6.2% in Q1 FY26.

House of Nykaa Brands

The House of Nykaa continues to deliver exceptional performance, now boasting an annualized GMV run rate of approximately Rs 2,700.00 crore, reflecting a strong 57% YoY increase. Notable performers include:

• Dot & Key: Achieved an annualized GMV run rate of Rs 1,500.00 crore, with 100%+ YoY growth
• Kay Beauty: Reached an annualized GMV run rate of Rs 250.00 crore+, with 56% YoY growth
• Nykaa Cosmetics: Attained an annualized GMV run rate of Rs 350.00 crore

Strategic Acquisition

The Board of Directors has approved the acquisition of the remaining 40% stake in Nudge Wellness Private Limited for Rs 14.26 lakhs. This move will make Nudge Wellness a wholly-owned subsidiary of Nykaa, aligning with the company's strategic intent to build and scale its presence in the wellness sector, particularly in dietary supplements and nutricosmetics categories.

Expansion and Partnerships

Nykaa continues to expand its offline retail network, reaching 250 beauty stores across 82 cities as of July 2025. The company has also added several global brands to its portfolio, including Chanel Beauty & Fragrance, Armani Beauty, and Supergoop, among others.

In a significant move towards international expansion, Kay Beauty, co-founded with actor Katrina Kaif, will debut in the UK through Space NK, a prestigious luxury beauty retailer.

Management Commentary

Falguni Nayar, Executive Chairperson, Founder, and CEO of Nykaa, commented on the results: "This quarter's performance underscores Nykaa's ability to consistently balance growth and profitability across both our beauty and fashion businesses. Our GMV for the quarter grew 26% year-on-year to Rs. 4,182 Cr, supported by accelerated premiumization and deeper market penetration."

As Nykaa continues to strengthen its position in the beauty and fashion e-commerce space, the company's focus on sustainable growth and strategic expansions appears to be yielding positive results.

Nykaa , a leading e-commerce platform in India, has announced a significant legal victory for its wholly-owned subsidiary, Nykaa Fashion Limited. The fashion arm of the company has been awarded ₹10 crore in compensation through an arbitration process, stemming from a dispute with a former senior employee.

Arbitration Details

The arbitration award, dated August 5, 2025, comes as a result of proceedings initiated due to alleged breaches of employment contract obligations. The dispute centered around issues of confidentiality and non-solicitation by a senior ex-employee of Nykaa Fashion.

Financial Implications

The ₹10 crore compensation represents a substantial sum for Nykaa Fashion. This award is expected to have a positive impact on the company's financial position, although the specific effects on the overall financial statements of FSN E-Commerce Ventures Limited, Nykaa's parent company, are yet to be detailed.

Legal Process and Resolution

The resolution was reached through a consent-based arbitration process. The terms of the settlement were recorded in the arbitration award, effectively concluding the legal proceedings. This outcome demonstrates Nykaa Fashion's commitment to protecting its business interests and enforcing contractual obligations.

Company's Statement

In its disclosure to the stock exchanges, FSN E-Commerce Ventures Limited stated, "Nykaa Fashion Limited, a wholly owned subsidiary of the Company, is inter alia entitled to receive compensation of Rs. 10 crores (Rupees Ten Crores Only) pursuant to the Consent Terms which have been recorded in the Arbitration award dated August 5, 2025."

Market Implications

While the immediate financial benefit is clear, the long-term implications of this arbitration victory for Nykaa Fashion and its parent company remain to be seen. The outcome may serve as a deterrent to potential breaches of employment contracts and reinforce the company's position in protecting its business interests.

This development comes as Nykaa continues to strengthen its position in the competitive e-commerce and fashion retail space in India. The company's proactive approach in addressing and resolving such disputes may be viewed positively by investors and stakeholders.