Nykaa Delivers 79% Profit Surge in Q1 FY26, Revenue Crosses ₹2,150 Crore

FSN E-Commerce Ventures Ltd, the parent company of Nykaa, reported a strong 79% year-on-year rise in Q1 FY26 net profit to ₹24 crore, supported by 23% revenue growth and improved operating margins. The company’s Beauty and Personal Care segment continued to drive profitability, while losses in Fashion narrowed significantly.

FSN E-Commerce Ventures Ltd, headquartered in Mumbai, is among India’s most prominent consumer-tech players in the beauty, personal care, fashion, and lifestyle space. Operating under the Nykaa brand, the company has built a strong omnichannel presence, offering products through its digital marketplace as well as a growing chain of offline stores.

Financial Highlights – Q1 FY26

• Net Profit: ₹24 crore, up 79% from ₹14 crore in Q1 FY25
  
• Revenue from Operations: ₹2,155 crore, up 23% from ₹1,746 crore last year
  
• EBITDA Margin: 6.5%, improving by 100 basis points year-on-year
  

Revenue Growth

Revenue growth in the first quarter was driven by sustained demand in beauty and personal care categories and improving order volumes in the fashion segment. The company’s premiumization strategy also contributed to higher average order values, with customers opting for higher-end products across categories.

Also Read: Nykaa Stock Jumps 2%—Is This Your Entry Point?

Margin Performance

Operational efficiency and better cost management contributed to the overall margin improvement.

• Beauty and Personal Care (BPC): Contribution margin improved by 70 basis points to 21%, while EBITDA margin expanded by 50 basis points to 8.4%.
  
• Fashion: Contribution margin declined by 280 basis points to 14% due to competitive pricing; however, EBITDA margin improved by 470 basis points to -10.5%, showing progress towards breakeven.
  

Customer Metrics

The platform saw robust engagement:

• Annual Unique Transacting Customers: Up 26% year-on-year
  
• Average Order Value (AOV): Up 4%, supported by increased adoption of premium products
  

Stock Market Reaction

Following the announcement of Q1 results, Nykaa shares opened higher on the National Stock Exchange (NSE), rising 3.7% to ₹212 per share at 9:20 AM.

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