Nykaa , officially known as FSN E-Commerce Ventures Limited, has reported robust financial results for the first quarter, demonstrating strong growth and improved profitability across its beauty and fashion segments. The company's shares responded positively to the news, rising over 4% in early trading.

Financial Highlights

The company's consolidated Gross Merchandise Value (GMV) reached Rs. 4,182.00 crore, marking a 26% year-over-year increase. Revenue from operations rose by 23% to Rs. 2,155.00 crore, continuing the consistent growth momentum observed over several quarters.

Nykaa's profitability saw significant improvements:

• EBITDA grew by 46% year-over-year to Rs. 141.00 crore
• EBITDA margin expanded to 6.5% from 5.5% in the previous year's corresponding quarter
• Net profit surged by 79% year-over-year to Rs. 24.00 crore

Beauty Segment Performance

The Beauty vertical showed robust growth, with GMV increasing 26% year-over-year 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.

Key highlights of the Beauty segment include:

• Cumulative beauty customer base expanded to nearly 37 million, reflecting a 29% year-over-year increase
• Offline retail network reached 250 stores across 82 cities
• Total retail space grew 36% year-over-year to over 2.5 lakh sq. ft.
• Store network posted strong GMV growth of 33% year-over-year

Fashion Segment Rebound

Nykaa Fashion posted a robust performance, signaling a strong rebound in growth alongside notable profitability improvements:

• GMV grew 25% year-over-year to Rs. 964.00 crore
• EBITDA margin improved significantly, narrowing from -9.2% to -6.2% compared to the same quarter in the previous year

The core fashion platform saw enhanced customer engagement with 165 million visits (30% year-over-year growth) and an 8.5 million-strong customer base (up 32% year-over-year).

House of Nykaa Growth

The House of Nykaa portfolio, which includes the company's owned brands, delivered exceptional performance:

• Annualized GMV run rate reached approximately Rs. 2,700.00 crore, reflecting a strong 57% year-over-year increase
• The House of Beauty portfolio scaled to an annualized GMV run rate of over Rs. 2,300.00 crore with an impressive 70% year-over-year growth

Strategic Developments

Nykaa announced its plan to acquire the remaining 40% stake in Nudge Wellness Private Limited for Rs. 14.26 lakhs, making it a wholly-owned subsidiary. This move aligns with Nykaa's strategic intent to build and scale its presence in the wellness sector, particularly in dietary supplements and nutricosmetics categories.

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. 4,182.00 Cr, supported by accelerated premiumization and deeper market penetration."

Nayar also highlighted the company's growing customer base, which now stands at 45 million, reflecting the increasing trust and adoption of Nykaa's platform.

Market Response

Following the announcement of the strong Q1 results, Nykaa's shares rose over 4% in early trading. The nearly 50% expansion in EBITDA margin was particularly well-received by investors. Trading volumes were exceptionally high, with over 11 million shares changing hands in the first 45 minutes, more than 4 times the 10-day average.

The futures market showed a 6.7% increase in open interest, indicating long positions and trader expectations of further price increases. Nykaa topped the list of stocks with the highest open interest increases alongside price rises.

JM Financial analysts rated the stock as 'buy' with a target price of Rs. 260.00, citing expectations of accelerated EBITDA margin improvement and shrinking losses in the fashion unit.

As Nykaa continues to expand its offerings and improve its operational efficiency, the company appears well-positioned for sustained growth in the Indian beauty and fashion e-commerce market.

Nykaa , operated by FSN E-Commerce Ventures Limited, has outlined its ambitious long-term growth strategy for FY26-28, emphasizing its commitment to maintaining leadership in the beauty and personal care segment while aggressively expanding its fashion platform.

Strategic Focus on Beauty and Fashion

The company's strategy centers on solidifying its position as a leader in the beauty and personal care market, a segment where Nykaa has already established a strong foothold. Simultaneously, Nykaa plans to accelerate the growth of its fashion platform, aiming to capture a larger share of India's burgeoning online fashion market.

Private Label Development and Omnichannel Growth

A key aspect of Nykaa's strategy involves the development of high-profit private label products. This move is expected to boost margins and offer customers unique, Nykaa-branded options across both beauty and fashion categories.

The company also emphasized its commitment to omnichannel growth, leveraging its strong online presence while expanding its physical retail footprint. This approach will be supported by technology-driven personalization, enhancing the shopping experience for customers across all platforms.

Customer-Centric Approach

Nykaa's strategy heavily emphasizes strong customer growth as a foundation for expanding margins and market share. The company plans to leverage its data-driven insights and personalization capabilities to attract and retain customers, driving both repeat purchases and new customer acquisition.

Financial Performance

The announcement of this long-term strategy comes on the heels of Nykaa's strong financial performance for Q1 FY2026. The company reported:

• Revenue from operations of ₹2,154.94 crore, a 23% year-over-year increase
• Gross Profit of ₹962.00 crore, with a margin of 44.6%
• EBITDA of ₹141.00 crore, representing a 46% year-over-year growth
• Net Profit After Tax of ₹24.47 crore, a significant 79% increase from the previous year

Segment Performance

The Beauty segment continued to be the primary revenue driver:

While the Beauty segment showed strong profitability, the Fashion segment reported a loss, indicating room for improvement in line with the company's new strategic focus.

Management's Perspective

Falguni Nayar, Executive Chairperson, CEO & Managing Director of FSN E-Commerce Ventures Limited, stated, "Our long-term strategy is designed to capitalize on our strengths in the beauty sector while aggressively growing our fashion business. We're confident that our focus on private labels, omnichannel expansion, and customer-centric approach will drive sustainable growth and profitability in the coming years."

As Nykaa embarks on this ambitious growth strategy, investors and industry observers will be keenly watching the company's ability to execute its plans and maintain its strong growth trajectory in the highly competitive e-commerce landscape.