FSN E-Commerce Ventures, the company behind the beauty and fashion platform Nykaa, posted a profit after tax of Rs 101 crore for the September quarter of FY27 (Q2FY27). That is a 207% rise from Rs 33 crore in the same quarter last year. Revenue from operations climbed 28% to Rs 3,006 crore, up from Rs 2,346 crore a year earlier.
Margins also improved. Gross margin rose 106 basis points to 46%, helped by growing sales from the House of Nykaa range and higher marketing income. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 65% to Rs 263 crore, and the EBITDA margin widened to 8.7% from 6.8%.
Beauty business keeps growing
The beauty vertical recorded gross merchandise value (GMV) of Rs 4,454 crore in the quarter. This figure covers the e-commerce business, retail stores, B2B distribution and the House of Nykaa beauty range. Net sales value (NSV) in beauty rose 28%, while EBITDA in the segment went up 51%.
Nykaa added more than 330 beauty brands over the year. Recent arrivals include Yves Rocher, Oribe, Mamonde, MEDIHEAL, &honey and Purito Seoul. The company says the brands come from France, Japan, South Korea and the US, as well as emerging Indian labels.
The company also held the fourth edition of Nykaaland, its beauty festival. Over four editions, the event has drawn more than 100,000 beauty enthusiasts, featured over 50 masterclasses and brought together more than 1,500 celebrities, creators and key opinion leaders.
Quick delivery reaches 15 cities
Nykaa Now, the company’s quick delivery service, is now available in 15 cities. Nykaa plans to be in more than 25 cities by the end of FY27. Deliveries take 30 to 60 minutes, and the platform carries over 1,000 beauty, personal care and wellness brands.
According to the company, its premium and luxury range is attracting buyers. Average order value on Nykaa Now is three times the figure for the beauty and personal care category on other quick-commerce platforms.
Nykaa’s physical retail network has grown to 338 stores in 111 cities, after adding 14 stores in six new cities during the quarter. Total retail space rose 26% to more than 3.4 lakh square feet.
House of Nykaa and B2B growth
House of Nykaa reached an annualised GMV run rate of more than Rs 4,000 crore and an annualised NSV of over Rs 2,300 crore. Its NSV grew 36% and it has served more than 19 million customers so far.
Several owned brands received awards. Nykaa Cosmetics’ Matte to Last Lipstick won Best Lipstick at the Grazia Indie Awards, and Kay Beauty’s Lash Maximizer Mascara was named Best Mascara at the same event.
Nykaa’s B2B platform, Superstore by Nykaa, reported GMV of Rs 328 crore. Its registered retailer base grew 27% to more than 5.5 lakh. The company says it achieved this without adding business development executives over the past year.
Fashion turns EBITDA-positive
The fashion business posted NSV of Rs 509 crore, up 47%. Its EBITDA margin, measured against NSV, moved to 0.2% from negative 3.5% a year earlier, meaning the segment has moved into positive EBITDA territory.
Nykaa to buy 82% of Simply Nam
Nykaa’s board has approved the purchase of an 82% equity stake in Simply Nam Beauty Private Limited, on a fully diluted basis. The deal is worth up to Rs 33 crore.
Simply Nam was founded in 2020 by celebrity makeup artist Namrata Soni and Bozzil, a venture studio led by Hanna Strömgren Khan. The brand pairs Soni’s professional makeup know-how with clinically tested formulations.
After the deal, Soni will hold an 18% stake and take on the role of Co-Founder and Chief Product Officer. She will lead work on product development, content, brand strategy, marketing and education. Nykaa says the acquisition will strengthen the makeup range within House of Nykaa, which serves everyone from younger shoppers chasing trends to fans of celebrity-led brands.
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