Beauty and fashion firm FSN E-commerce Ventures, which operates Nykaa, recorded a 154% jump in profit after tax (PAT) to Rs 33 crore for the second quarter of FY26 compared with Rs 13 crore in the year-ago period. PAT, however, missed Bloomberg estimates of Rs 38 crore.
Revenue from operations stood at Rs 2,346 crore, up 28% from Rs 1,875 crore in the second quarter of FY25, marginally beating Street estimates of Rs 2,340 crore. Earnings before interest, taxation, depreciation and amortisation (Ebitda) was in line with Bloomberg estimates of Ras 159 crore, and was up 53% year-on-year. Ebitda margin was 6.8%, up 125 basis points, while PAT margin increased 71 basis points year-on-year at 1.4%.
The firm, which took Kay Beauty, a part of its owned portfolio, international last quarter, will continue to explore global expansion. “We’re definitely going to double down on the UK (market). We will be doing it in a measured manner, picking geographies one by one, picking the right retailer partners rather than going for a very wide distribution,” Falguni Nayar, managing director and chief executive, FSN E-commerce Ventures, said.
Consolidated GMV (gross market value) for the quarter stood at Rs 4,744 crore, up 26% from Q2FY25, driven by 28% growth in the beauty and personal care (BPC) segment and 37% growth in fashion. Nykaa’s cumulative customer base grew 32% to 49 million at the end of the second quarter, on the back of accelerated customer acquisition, the company said.
“We continue to invest on growth and customer acquisition. So even the efficiencies we’re able to derive from fulfillment and marketing, we are reinvesting that,” Adwaita Nayar, chief executive of Nykaa Fashion, said. Beauty segment GMV grew to Rs 3,551 crore from Rs 2,783 crore in the September quarter of FY25 while fashion segment GMV rose to Rs 1,180 crore from Rs 863 crore. Revenue from BPC segment grew 25% to Rs 2,132 crore and fashion segment 21% to Rs 201 crore.
Annual unique transacting customers (AUTC) in beauty grew 27% (17.5 million in Q2FY26 vs 13.7 million in Q2FY25). The total number of orders in the quarter was up 22% on-year at 15.7 million. During the September quarter, the company added 19 new physical stores to expand its pan-India footprint to 265 stores across 90 cities. The firm added that two-thirds of its physical store GMW comes from premium brands.
The firm also said it is further sharpening its focus on the fragrance category – one of its fastest growing – and will open fragrance only stores in the coming months. “Fragrance is going to be a big driver of growth. It is also a big part of our retail stores because really the ability to test and smell a fragrance can only be done in physical (stores). We are about to open a fragrance only store called Nykaa Perfumery. So you will start to see some of those stores popping up across several key metros in the coming months,” Anchit Nayar, chief executive, beauty e-commerce at FSN E-commerce said.
The firm’s rapid delivery service is present in 7 cities, serviced by 53 rapid stores and has delivered 2 million order till date, with the fastest being fulfilled in seven minutes, the management said. Beauty GMV across Nykaa’s owned brands (as part of its house of brands strategy) rose 74% year on year at Rs 627 crore, and continued to be led by Dot & Key, Nykaa Cosmetics, and Kay Beauty.
On the fashion front, Nykaa’s owned brands saw 18% growth in GMV annually on a like-to-like basis. A couple of quarters back, the firm had announced it will focus on five brands as part of its strategy for fashion. On an overall basis, fashion GMW for owned brands declined 12% year on year. FSN shares were up 0.2% at Rs 245.95 at the end of day’s trading on Friday on the Bombay Stock Exchange. The results were announced after market hours.
