Nykaa Q3 Profit Surges 142% YOY To ₹63 Cr.; Revenue Up 27%

FSN E-Commerce Ventures, the parent company of Nykaa, reported a sharp improvement in profitability for the December quarter, supported by strong growth in its beauty vertical and expanding operating leverage.

Nykaa Q3 FY26 Key Financial Highlights

The financial performance of Nykaa Q3 FY26 is as follows:

• Net Profit (PAT): Nykaa reported a consolidated PAT of ₹63 crore in Q3 FY26, up 142% year-on-year (YoY) from ₹26 crore in Q3 FY25.

• Revenue: Revenue from operations rose 27% YoY to ₹2,873 crore, compared with ₹2,267 crore a year ago.

• Sequential Growth: PAT grew 84% quarter-on-quarter (QoQ) over ₹34 crore in Q2 FY26.

• GMV Growth: Consolidated gross merchandise value (GMV) climbed 28% YoY to ₹5,795 crore during the quarter.

• Gross Profit: Gross profit increased by 31% YoY to ₹1,297 crore, which shows that there is improved monetisation.

• EBITDA Performance: Earnings before interest, taxes, depreciation and amortisation (EBITDA) have increased by 63% year after year to ₹230 crore which is a sign of an increase in operating leverage.

• Margin Expansion: The improvement in EBITDA margin was 8% versus 6.2% in Q3 FY25.

• Profit Before Tax (PBT): PBT stood at ₹110 crore, registering a sharp 146% YoY increase.

The steady increase in both revenue and profit reflects better execution and increased contribution of scalable categories in the festive-intensive quarter.

Business Performance Highlights

The Q3 FY26 success of Nykaa was due to high performance in its central business, particularly beauty, along with increasing momentum in its own brands and continued growth in customers across its platforms. The company also registered the largest quarter to date in terms of GMV, which is a result of continued momentum in e-commerce, offline retail, and premium brand portfolio development.

1. Beauty Vertical Delivers Largest Quarter Yet

The beauty business of Nykaa recorded high growth in the quarter, which is its best performance. The beauty vertical showed GMV of ₹4,302 crore, with a 27% increase over the previous year, driven by consistent momentum in online sales and physical retail and its own brands portfolio under its House of Nykaa brand.

2. Customer Base Expands Across Platforms

Nykaa further continued to expand its consumer base, with the total number of beauty customers reaching about 42 million in Q3 FY26, which is an increment of 30% year to year. The integrated platform of the company, One Nykaa, hit 52 million customers as well, with a 31% YoY growth, which is a sign of robust customer acquisition and increased engagement.

3. House Of Nykaa Scales Up In Beauty And Fashion

The House of Nykaa portfolio achieved good traction in the quarter, where the beauty and fashion GMV was at ₹872 crore. By Q3FY26, the House of Nykaa platform had already reached more than 16 million customers, which underscores its rising presence and brand acceptance.

Management Commentary Highlights Record Quarter

Commenting on the results, Executive Chairperson, Founder, and CEO Falguni Nayar said Q3 was a record quarter for Nykaa, with its highest-ever GMV and EBITDA margin while maintaining long-term growth momentum.

She added that over the past 13 years, Nykaa has evolved into a multi-platform lifestyle business addressing a $100 billion+ beauty and fashion opportunity and now serves more than 52 million customers under One Nykaa.

She said the performance reflected consistent execution on key priorities, including assortment expansion, offline growth, technology-driven discovery, and a disciplined focus on efficiency.

What Does This Mean For Investors?

The Q3 FY26 results of Nykaa indicate increased operating leverage, and the growth in GMV, gross profit, and EBITDA has been translated into a steep increase in profitability. The improvement in the EBITDA margins to 8%, the steady increase in the size of the customer base, and the increase in the contribution of the owned brands are all indicators of strengthening fundamentals.

As Nykaa continues to scale its House of Nykaa portfolio, investors should pay close attention to how the company has managed to grow its margins and keep its growth momentum in place based on its beauty-led business strategy.

Source:

Economic Times

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