Nykaa Q2 net profit zooms 244% on strong beauty and fashion sales; GMV surges 30%

FSN E-Commerce Ventures Ltd, the parent company of fashion and beauty retailer Nykaa, on Friday (November 7) reported a net profit of ₹34.4 crore for the quarter ended September 2025, up from ₹10 crore in the same period last year, marking a 244% year-on-year increase.

Revenue from operations grew 25.1% year-on-year to ₹2,346 crore from ₹1,875 crore in Q2 FY25, supported by strong growth in the beauty segment and a revival in fashion.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 53% to ₹158.5 crore compared with ₹103.6 crore in the year-ago period. The company’s EBITDA margin expanded to 6.7% from 5.5% a year ago.

Nykaa’s consolidated Gross Merchandise Value reached ₹4,744 crore in the second quarter of fiscal year 2026, up 30% year-on-year. Gross profit grew 28% year-on-year to ₹1,054 crore, marking the highest gross margin in the last 12 quarters. This quarter also represents the twelfth consecutive quarter of mid-20s per cent growth in revenue from operations.

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Nykaa’s beauty business delivered strong performance in Q2 FY2026, with Gross Merchandise Value rising 28% year-on-year to ₹3,551 crore, driven by momentum across e-commerce, physical retail, and owned brands under the House of Nykaa.

The cumulative beauty customer base stood at approximately 40 million as of Q2 FY2026, a 31% increase year-on-year. As India’s largest specialised beauty retail network, Nykaa expanded to 265 beauty stores, adding 19 new stores in the quarter across 90 cities, including eight new cities, with total retail space increasing 37% year-on-year to over 2.7 lakh square feet.

The House of Nykaa, encompassing beauty and fashion, reached an annualised Gross Merchandise Value run rate of approximately ₹2,900 crore, representing a 54% year-on-year growth. In Q2 FY2026, the platform clocked a GMV of over

₹720 crore, serving more than 16 million customers to date across 12 in-house beauty and fashion brands.

The House of Nykaa beauty portfolio alone recorded ₹627 crore GMV, up 74%  year-on-year, solidifying its position as India’s second-largest homegrown beauty brand portfolio. Dot & Key maintained its position as India’s leading direct-to-consumer skincare brand, achieving an annualised GMV run rate of over ₹1,500 crore, reflecting more than 110% year-on-year growth and a high-teens EBITDA margin.

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Nykaa Cosmetics delivered an annualised GMV run rate exceeding ₹400 crore, with new launches contributing around 19% of revenue, while Kay Beauty, co-founded with Katrina Kaif, reached an annualised GMV run rate of over₹350 crore. Nykaa’s in-house lingerie brand, Nykd, achieved an annualised GMV run rate of ₹175 crore, growing approximately 30% year-on-year, with its sleepwear segment registering over 100% year-on-year GMV growth in the quarter.

Superstore by Nykaa, the company’s eB2B operation, has grown rapidly to become India’s largest B2B beauty distribution network, reaching more than 3.3 lakh retailers across 1,100 cities. In Q2 FY2026, Superstore achieved an annualised GMV run rate exceeding ₹1,100 crore, up 25% year-on-year, driven by an expanded brand portfolio, premiumisation, and deeper penetration into Tier 2 and Tier 3 markets.

Nykaa Fashion continued its recovery from Q1, delivering 37% year-on-year Gross Merchandise Value growth to ₹ 1,180 crore in Q2 FY2026. The EBITDA margin as a percentage of Net Sales Value improved significantly from negative 9% in Q2 FY2025 to negative 3.5% in Q2 FY2026, supported by higher customer traction and operational leverage. The core platform saw 191 million visits, up 30%  year-on-year, 23 million monthly active unique visitors, up 30%, a cumulative customer base of 9 million, up 33% and over 2 million orders, up 38% year-on-year.

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Overall, Nykaa’s profitability strengthened, with gross margin and EBITDA margin up 134 basis points and 422 basis points year-on-year, respectively, supported by increased share of House of Nykaa brands and scale efficiencies. E-commerce Gross Merchandise Value also grew 38%  quarter-on-quarter.

Shares of FSN E-Commerce Ventures Ltd ended at ₹246.00, up by ₹0.55, or 0.22%, on the BSE.