Nykaa reports stellar Q3 FY26 results with profit up 151%, revenue rising 26.7%, and beauty business leading growth amid strong consumer demand.

Mumbai: Indian beauty giant Nykaa (FSN E-Commerce Ventures Ltd) reported a stellar third quarter for FY26, with consolidated net profit more than doubling amid robust consumer demand for premium beauty products and strategic expansions.

The results, covering October-December 2025, underscore Nykaa’s growth in India’s thriving beauty and e-commerce market, driven by festive sales and own-brand performance.

Explosive Profit and Revenue Growth

Nykaa’s consolidated profit after tax (PAT) surged 151.17% year-on-year to ₹67.74 crore from ₹26.97 crore in Q3 FY25. Revenue from operations climbed 26.73% to ₹2,873.26 crore from ₹2,267 crore.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 63.2% to ₹230 crore, with margins expanding to 8% from 6.2%, reflecting improved operational efficiencies and cost management.

Gross merchandise value (GMV) and net sales value (NSV) both grew in the late twenties percent, marking the largest quarter in absolute scale for the company.

Beauty Segment Leads the Charge

The core beauty vertical, Nykaa’s primary revenue driver, saw revenue rise 24.01% to ₹2,622.36 crore. GMV in this segment increased 27% to ₹4,302 crore, with NSV growth in the late twenties—the highest in the past six quarters. Net revenue growth was in the upper end of mid-twenties.

Growth was broad-based across e-commerce, retail stores, eB2B distribution, and the House of Nykaa portfolio, which saw GMV up 48%. Key contributors included the successful Pink Friday sale, new customer acquisition, and launches of international brands like Dolce & Gabbana Beauty and Kylie Cosmetics. Offline expansion to 276 stores also bolstered performance.

Fashion Segment Shows Steady Momentum

The fashion segment reported revenue growth of 18.09% to ₹235 crore, with NSV up in the mid-twenties. Net revenue grew in the late teens, affected by subdued content and marketing income, as well as channel optimization for owned brands. Partnerships like Nike India supported the segment’s revival since the start of FY26.

Nine-Month Cumulative Performance

For the first nine months of FY26 (April-December 2025), consolidated revenue grew 25.24% to ₹7,374.18 crore, while PAT rose 128.91% to ₹125.19 crore.

Market Reaction and Analyst Insights

Nykaa shares surged about 2.3% in early trading on January 5, 2026, following the update, reflecting market optimism. Analysts praised the results for beating estimates but cautioned on sustaining margins amid high valuations, competition, and shifting consumer patterns in India’s retail sector.

Standalone operations, however, declined 19.7% in revenue, with PAT falling, partly due to exceptional items related to new labor codes.

Company Background and Strategic Focus

Founded by Falguni Nayar, Nykaa has disrupted India’s beauty retail with its omnichannel approach, serving 49 million customers through online platforms and 265 offline stores (as of September 2025). The company emphasizes premium products, own labels, and international expansions, capitalizing on rising disposable incomes and beauty demand in India.

In its official statement, Nykaa noted the “stellar growth” as a result of consistent beauty performance and renewed fashion momentum.

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