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.

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.