FSN E-Commerce Ventures Ltd, the parent company of beauty and fashion retailer Nykaa, posted a 79% year-on-year rise in profit after tax (PAT) for the first quarter of FY26. PAT stood at ₹24 crore, up from ₹14 crore in the same quarter last year.
However, the performance fell short of Bloomberg’s forecast of ₹33 crore, signalling that while growth remains strong, earnings did not fully meet Street expectations.
Nykaa’s revenue from operations rose 23.4% year-on-year to ₹2,155 crore in Q1FY26, compared to ₹1,746 crore in the same quarter last year. This was slightly below analysts’ estimate of ₹2,170 crore.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at ₹141 crore, missing the projected ₹147 crore but showing a 46% year-on-year increase. EBITDA margin improved by 100 basis points to 6.5%.
PAT margin for the quarter expanded by 30 basis points year-on-year, reaching 1.1%, reflecting steady progress in profitability.
Nykaa reported a consolidated gross merchandise value (GMV) of ₹4,182 crore in Q1FY26, up 26% from the year-ago period. Growth was driven by:
26% increase in Beauty and Personal Care (BPC) GMV to ₹3,208 crore
25% rise in Fashion GMV to ₹964 crore
Revenue from the BPC segment surged 24% to ₹1,975 crore, while fashion revenue grew 15% to ₹171 crore.
Nykaa’s annual unique transacting customers in the beauty segment increased 26% to 16.5 million in Q1FY26, compared to 13.1 million in Q1FY25.
The total customer base grew 30% year-on-year to 45 million. Order volumes also saw healthy growth, with 14.5 million orders placed during the quarter — up 17% from last year.
Nykaa continued to expand its physical retail presence, adding 13 new stores during the June quarter. The total number of outlets now stands at 250 nationwide.
The offline channel delivered a 33% year-on-year GMV growth and maintained double-digit same-store sales growth. The company confirmed that the offline store network remains profitable.
The company’s rapid delivery service now operates in seven cities through a network of over 50 rapid stores. Since launch, it has fulfilled 1.3 million orders.
This service is part of Nykaa’s strategy to provide faster order fulfilment, especially for its high-demand beauty segment.
Nykaa’s owned beauty brands under its “house of brands” model saw a 70% GMV increase year-on-year, reaching ₹578 crore. Key performers included Dot & Key, Nykaa Cosmetics, and Kay Beauty.
Kay Beauty is set to debut in the UK through luxury retailer Space NK in the coming weeks. Dot & Key is also being considered for international expansion.
Revival in Fashion Brand Performance
Nykaa’s fashion brands returned to strong growth, posting a 26% year-on-year rise in Q1FY26 after a few quarters of muted sales. The management highlighted that these brands are gaining better traction on Nykaa’s own platforms.
Falguni Nayar, Executive Chairperson, Founder, and CEO of Nykaa, said:
“This quarter’s performance underscores Nykaa’s ability to consistently balance growth and profitability across both our beauty and fashion businesses.”
Nykaa shares closed 0.66% higher at ₹204.95 on the BSE on Tuesday, with results announced post-market hours.