Nykaa’s parent FSN E-Commerce Ventures Ltd saw its third-quarter consolidated net profit jump, driven by an increase in gross sales and margins.
Profit rose 157% year-on-year to ₹68 crore in the October–December quarter results, according to its consolidated financial statements filed on Thursday.
The company reported a 27% rise in consolidated revenue from core operations to ₹2,873 crore over the corresponding period last year. Its EBITDA stood at ₹230 crore, a 63% year-on-year jump, with margins expanding 180 basis points to 8% in Q3.
Beauty segment drives earnings
“Operationally, we feel confident that each of those 4 businesses (in the beauty vertical-online retail, physical retail, B2B superstores, owned brands) can continue to improve their profitability,” Nykaa’s executive director Anchit Nayar said in the post-earnings call.
The performance was boosted by strong demand for skincare and makeup products, with revenue from the beauty segment jumping 27% year-on-year to ₹2,622 crore in the December quarter, its filing showed.
Nykaa reported a 26% jump in annual unique transacting customers (AUTC) in the beauty segment to 18.7 million customers and a 33% increase to 4.1 million customers in the fashion vertical. Total orders in the quarter grew to 3 million, up 39% year on year.
The gross merchandise value (GMV) from the beauty vertical grew 27% year-on-year to ₹4,302 crore, supported by sustained momentum across e-commerce, physical retail and owned brands under the House of Nykaa. The company’s most successful private label brand Kay Beauty, fronted by actress Katrina Kaif, reached ₹500 crore in annual GMV, with sales in the UK and the Middle East.
Meanwhile, House of Nykaa’s beauty and fashion GMV for the quarter stood at ₹872 crore, reflecting a robust 48% year-on-year growth. “One of the big drivers, of course, is that we keep saying that the house of beauty or house of brands, business of ours, like a house of brands, continues to accelerate its growth,” Nayar said. A 574 basis points improvement in the EBITDA margin of Nykaa’s B2B business also drove growth for the company, he added.
Fashion business stages strong recovery
While the beauty segment continued to grow, the company’s fashion arm started to benefit from its strategy focused on assortment expansion, brand partnerships and customer engagement.
These efforts helped accelerate recovery during FY2026, resulting in a sharp improvement in demand traction. As a result, the fashion platform posted a 31% year-on-year jump in GMV to ₹1,476 crore in Q3.
Overall, the company achieved its highest-ever quarterly consolidated GMV of ₹5,795 crore in the December quarter, representing a 28% year-on-year increase, according to the company’s earnings filing.
“Q3 FY2026 marked a record quarter for Nykaa, with our highest-ever GMV and EBITDA margin, while sustaining our long-term growth trajectory,” Falguni Nayar, executive chairperson, founder and CEO Nykaa had said in a statement.
Nykaa Fashion also announced a new partnership with footwear brand Nike and an expansion of executive distributorships to three premium skincare brands owned by French beauty multinational L’Oreal – La Roche Posay, Nyx Professional makeup, and Kiehl’s.
“We have a much wider set of capabilities which spans across, you know, creating a platform to do digital commerce in the country, deep expertise of the consumer and the ecosystem in India, how to run fulfillment at scale, how to provide the kind of premium experience that brands such as Nike,” the junior Nayar said.
Analysts tracking the stock had said they were positive about the company’s growth trajectory.
“Growth of net sales value (Net Sales Value) for the Beauty & Personal Care (BPC) category is expected to be in high 20s% in 3QFY26E, the highest in the past 6 quarters,” analysts at the equities brokerage arm for Nomura said. “This growth rate would be driven by seasonally strong quarter, growth in Nykaa’s beauty business, successful Pink Friday sales, and new customer acquisition.”
Shares of Nykaa rose over 4.15% on Thursday to ₹ 261.45 on NSE while the benchmark Nifty50 remained largely flat.
Disclaimer: : We advise investors to check with certified experts before making any investment decisions.
