Nykaa's parent company, FSN E-Commerce Ventures, has reported a significant surge in its second-quarter financial results, leading to a positive market reaction. Shares of the company jumped as much as 5% following the announcement.

The company's consolidated net profit for the July-September quarter of the financial year 2025-26 skyrocketed by 243% year-on-year (YoY) to ₹34.43 crore, compared to ₹10.04 crore in the same period last year. Revenue from operations also witnessed a substantial 25% increase, reaching ₹2,345.98 crore, up from ₹1,874.74 crore in the corresponding quarter of the previous fiscal year.

The company's financial performance also showed improvement on a sequential basis. Net profit increased by 48% from ₹23 crore in the first quarter of FY26, while revenue grew by 9% from ₹2,155 crore in the previous quarter.

Several factors contributed to Nykaa's impressive Q2 performance. The Beauty and Personal Care (BPC) segment, Nykaa's core business, continued to be a key driver of growth. The Gross Merchandise Value (GMV) for the beauty segment increased by 28% YoY to ₹3,551 crore, supported by strong online sales, expansion of physical retail, and the success of proprietary brands under the House of Nykaa. The Fashion segment also showed positive momentum, with GMV rising by 37% YoY to ₹1,180 crore.

Nykaa's overall consolidated GMV reached ₹4,744 crore, marking a 30% YoY increase. The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) jumped 53% YoY to ₹159 crore, the highest since its IPO. The EBITDA margin improved to 6.8% in Q2 FY26 from 5.5% in Q2 FY25, reflecting enhanced operating leverage and cost efficiencies. Gross profits stood at ₹1,054 crore, representing 50% of net revenues and a 28% YoY increase, with the gross margin being the highest in the last 12 quarters.

Nykaa has also been actively expanding its physical presence. In Q2, the company added 19 new stores, penetrating 8 new cities. As of the end of September 2025, Nykaa had over 2.7 lakh square feet of retail space, a 37% YoY growth, with a total of 265 stores across 90 cities. The company's customer base has also expanded significantly, growing by 32% YoY to reach 49 million.

Analysts project a positive outlook for Nykaa, with expectations of continued robust growth and margin improvements. Nuvama, a brokerage firm, has increased its target price for Nykaa shares, citing the company's strong performance and broad-based growth across categories. While Nykaa's profit after tax of ₹34 crore was slightly below the consensus estimate of ₹38.2 crore, Nuvama anticipates that GMV growth of over 25% will continue, along with further margin gains. The brokerage has marginally trimmed its FY26E and FY27E earnings estimates by 1% to 5%.

On November 7, 2025, Nykaa's share price closed at ₹246 on the BSE, a marginal increase of 0.22%.