FSN E-Commerce Ventures, which operates the beauty and fashion platform Nykaa, has reported a significant surge in its consolidated net profit for the first quarter of FY26. The company's shares are in focus after it revealed a nearly 79% rise in profit, driven by strong demand in its beauty segment, while its fashion unit saw higher revenue and narrower losses.
Key Financial Highlights
For the quarter ended June 30, 2025, Nykaa's net profit stood at ₹24.47 crore, a substantial increase compared to ₹13.64 crore in the same period last year. The company's consolidated revenue from operations also rose by 23% to ₹2,155 crore, up from ₹1,746 crore in the corresponding quarter of the previous year. The company's Gross Merchandise Value (GMV) reached ₹4,182 crore in Q1FY26, up 26% year-on-year. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) grew 46% year-on-year to ₹141 crore, with margins expanding to 6.5% from 5.5% in Q1FY25.
Segment Performance
Nykaa's core Beauty and Personal Care (BPC) segment continued to be a major driver of growth. Revenue from the BPC segment increased by 24% year-on-year to ₹1,975.37 crore, supported by the increasing popularity of its private labels and higher order volumes. The beauty vertical's GMV increased 26% year-on-year to ₹3,208 crore, supported by strong performance across e-commerce, retail stores, eB2B distribution and the House of Nykaa portfolio. The cumulative beauty customer base expanded to nearly 37 million in Q1, reflecting a 29% year-on-year increase.
Nykaa Fashion also showed positive trends, with its bottom line improving and losses narrowing to ₹27 crore, compared to ₹30 crore in the same quarter of the previous year. The segment's revenue rose by 15% to ₹170.83 crore during the same period. Nykaa Fashion's key metrics improved sequentially, with a 6% growth in revenue and a 25% decrease in losses from the last quarter.
Operational Expansion and Customer Base
Nykaa has been steadily expanding its presence through both online and offline channels. As of July 2025, Nykaa's offline retail network reached a milestone of 250 beauty stores across 82 cities. The total retail space grew 36% year-on-year in Q1FY26 to over 2.5 lakh square feet, supported by the rollout of larger-format experiential flagship stores. The company serves a vast customer base of over 42 million. The company's cumulative customer base now stands at 45 million.
Factors Influencing Performance
Several factors contributed to Nykaa's strong Q1FY26 performance. The company's focus on deepening market penetration and premiumization, as reflected in new customer acquisition and improving Average Order Value (AOV), played a crucial role. The expansion of its private label portfolio and strategic partnerships with global brands such as Charlotte Tilbury, Elf Cosmetics, and Foot Locker also supported growth.
However, the company faced some challenges during the quarter. There was a marginal impact on operating revenue due to lukewarm consumer sentiment during its flagship Pink Day sale, which the company attributed to geopolitical tensions.
Stock Performance and Market Activity
On August 12, 2025, shares of Nykaa were trading 1% higher at ₹205.7 apiece. In June, Nykaa allotted 5.23 lakh equity shares worth around ₹10.33 crore under its ESOP scheme. During the quarter, BNP Paribas Financial Markets executed block trades involving Nykaa shares, offloading 2.48 crore shares at an average price of ₹202.81, worth approximately ₹503 crore.
