Summary:
Nykaa reported a 206.8% rise in Q2 FY27 net profit to ₹101.19 crore, while revenue increased 28.1% to ₹3,006.04 crore. Beauty sales, fashion growth and higher EBITDA supported stronger earnings, alongside continued store expansion and investment across its retail network.
Nykaa’s parent FSN E-Commerce Ventures (NSE: NYKAA) reported a consolidated net profit for Q2FY27 that rose 206.8% YoY. Revenue rose 28.1% helped by strong beauty sales, improved fashion profitability and expansion of its offline store base.
Nykaa Q2FY27 Results
The company’s consolidated net profit was at ₹101.19 crore for the quarter ended September 30, 2026 as against ₹32.98 crore in Q2FY26.
Revenue from operations increased to ₹3,006.04 crore against ₹2,345.98 crore in the year-ago quarter. Revenue grew sequentially from ₹2,782 crore in Q1FY27.
Revenue grew faster than profits. This means the business is growing, and improving its operating efficiency.
EBITDA grew approx. 65% YoY to ₹263 crore and EBITDA margin expanded to 8.7%. Total expenses rose 24.7% to ₹2,867.05 crore, at a slower pace than revenue.
The company also reported a 26.8% QoQ increase in net profit, indicating sequential improvement in profitability.
The numbers are on account of higher sales, better operating leverage and cost controls across its businesses.
Business Standard+1 Company Results Beauty, Fashion Businesses Drive Growth
Nykaa’s beauty business still comprised a bigger chunk of its business.
Beauty gross merchandise value (GMV) rose 25% YoY to ₹4,454 crore, driven by demand for premium beauty products, repeat purchases and expansion across online and offline channels.
Fashion also saw a strong growth with GMV increasing 42% YoY to ₹1,674 crore.
The business of fashion has been delivering profitability improvements through product mix changes, cost to acquire a customer and operating efficiency.
Notably, the fashion business recorded its third consecutive quarter of EBITDA growth, versus operating losses in the prior year period.
Nykaa's business-to-business distribution platform, Superstore, registered a GMV of ₹328 crore. Registered retailer base increased 27% YoY to 5.5L+ retailers.
It allows the company to reach customers outside its own e-commerce site.
Expansion of Stores and Acquisition of New Business
Nykaa’s physical retail footprint grew further in the quarter.
The company increased its store network to 338 locations, adding 73 stores in the last 12 months.
The company also increased its faster-delivery beauty platform Nykaa Now to 15 cities and plans to expand it to over 25 cities by the end of FY27.
Apart from organic expansion, Nykaa has approved acquisition of 82% stake in cosmetics brand Simply Nam for up to ₹33 crore.
The acquisition will bolster its position in premium make-up and add to the portfolio of brands under its wing.
Simply Nam reported a turnover of INR 16.99 crore in FY26. The deal is expected to close by December 31, 2026, subject to customary conditions.
Why is Nykaa share price in news?
The shares were at about ₹353.90 on November 4, prior to the quarterly results being released.
The stock's next-session response will hinge on how investors weigh the company’s valuation and future spending needs against the strong profit growth.
The main upside is that earnings growth is far outstripping revenue growth. But the absolute net profit margin is still rather small compared to revenue.
The future performance of Nykaa will depend on its ability to sustain beauty growth, improve fashion profitability and expand its physical network without a disproportionate rise in expenses.
Q2FY27 results show that higher scale is beginning to translate into higher earnings with continued investment in stores, technology and customer acquisition still a key factor.
