FSN E-Commerce Ventures, the parent company of cosmetics retailer Nykaa, demonstrated an almost threefold increase in net profit in the second quarter of the fiscal year 2026-2027 (Q2FY27). This growth is attributed to the accelerated development of premium cosmetics and improved operational efficiency of the company.
The company's net profit for Q2FY27 increased to 101.19 crore rupees, compared to 32.98 crore rupees for the same period last year. The consistent growth in net profit amounted to 26.8 percent.
The company's operating revenue for Q2FY27 grew by 28 percent year-over-year (Y-o-Y) to reach 3,006.04 crore rupees, whereas last year this figure was 2,345.98 crore rupees. In the first quarter of FY27, revenue stood at 2,782 crore rupees.
Year-over-year expenses also rose by 24.7 percent, totaling 2,867.05 crore rupees. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter increased by 65 percent Y-o-Y, reaching 263 crore rupees, with the margin expanding to 8.7 percent in Q2FY27.
Falguni Nayar, Executive Chairperson, Founder, and CEO of Nykaa, noted that the results of this quarter reflect the strength of the Nykaa ecosystem, where each business contributes to growth and productivity. She added that the company continued to improve operational efficiency, especially in marketing and overhead costs. Growth is observed in the beauty and fashion segments, while House of Nykaa and Wellness provide significant opportunities for long-term development.
The company's beauty vertical showed a 25 percent Y-o-Y growth in Gross Merchandise Value (GMV), reaching 4,454 crore rupees, thanks to the sustained development of its omnichannel presence, supported by new customer acquisition and repeat purchases. The company reported that this includes metrics from e-commerce, physical stores, eB2B distribution, and the House of Nykaa Beauty portfolio.
Nykaa Now's express delivery vertical expanded to 15 cities, with plans to reach over 25 cities by the end of FY27. Nykaa Now offers over 1000 brands and a depth of beauty and personal care (BPC) inventory more than twice that of standard express delivery. The statement emphasized that carefully selected premium and luxury offerings resonate with consumers, leading to an average transaction value three times higher than the average transaction value in the express delivery BPC category.
The fashion segment also demonstrated growth, increasing GMV by 42 percent Y-o-Y to 1,674 crore rupees. Nykaa currently has 338 offline stores and added 73 new stores over the year.
House of Nykaa achieved an annual GMV rate of 4,000 crore rupees. To date, the portfolio has served over 19 million customers. The company stated that House of Nykaa continues to strengthen its relevance to consumers and open new growth opportunities through innovations in products, packaging, and formulations. It was also noted that Dot & Key released eight new shades of its Tinted Sunscreen, as well as Dragon Fruit Jelly Bounce Moisturiser. Kay Beauty entered the skincare segment this quarter, marking its first year of operation in the UK through its presence on Space NK and TikTok Shop.
The company's B2B distribution channel, Superstore by Nykaa, reached a GMV of 328 crore rupees. The base of registered retailers grew by 27 percent Y-o-Y, exceeding 550,000. During the quarter, Superstore strengthened its portfolio with next-generation brands in skincare, makeup, and wellness, including Recode, Lacto Calamine, Clay Co., BLA BLI BLU, Renee & Love Earth, and others.
