FSN E-Commerce Ventures, the company behind beauty and fashion platform Nykaa, made a net profit of ₹101.2 crore in the July to September 2026 quarter. That is more than three times the ₹33 crore it earned a year ago. Revenue rose 28% to ₹3,006 crore.
The board also approved buying an 82% stake in makeup brand Simply Nam Beauty for up to ₹33 crore. For investors, the main point is that profit grew much faster than sales.
What happened
Nykaa announced its results for the second quarter of 2026-27, called Q2 FY27. The Hindu BusinessLine listed Nykaa among companies reporting higher Q2 profit on 4 November, along with Lenskart, which also posted a jump in profit.
Profit after tax (PAT) is the money a company keeps after paying all its costs and taxes. CNBC-TV18 and Inc42 put Nykaa's consolidated net profit at ₹101.2 crore. Inc42 called it a 206.8% jump year-on-year (YoY), meaning against the same quarter last year. Economic Times gave the rounded figures of ₹101 crore and 207%.
Against the previous quarter, April to June 2026, profit rose 26.9% and revenue grew 8.1%, according to Inc42.
The numbers
| Measure | Q2 FY26 | Q2 FY27 | Change |
|---|---|---|---|
| Revenue from operations | ₹2,346 crore | ₹3,006 crore | Up 28.1% |
| Total expenses | Not given | ₹2,867.1 crore | Up 24.8% |
| EBITDA | ₹159 crore | ₹263 crore | Up 65.4% |
| Profit before tax | ₹55.4 crore | ₹148.5 crore | Up about 168% (our calculation) |
| Net profit | ₹33 crore | ₹101.2 crore | Up 206.8% |
Costs grew more slowly than revenue, so more of each rupee of sales became profit. The figures are from CNBC-TV18 and Inc42.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) is the profit from daily business. It is counted before loan costs, tax and the wear and tear of assets. EBITDA margin is the EBITDA earned from every ₹100 of revenue. Nykaa's 8.7% margin means about ₹8.70 for every ₹100 of sales.
Economic Times reported that gross margin rose to 46% from 44.9%, a gain of 106 basis points. Gross margin is what is left from sales after paying for the goods sold. The paper said bigger sales of Nykaa's own brands and higher marketing income helped.
Where reports differ
The reports differ on the year-ago EBITDA margin. Economic Times said the margin rose to 8.7% from 6.8%, a gain of 196 basis points. CNBC-TV18 said it rose to 8.7% from 6.7%, a gain of 200 basis points. We could not confirm which figure is right. Readers can check the company filing on the BSE or NSE website.
Beauty and fashion businesses
Beauty is the bigger business. CNBC-TV18 and Inc42 said beauty revenue rose 26.6% to ₹2,699.7 crore. Its profit before exceptional items rose to ₹180.2 crore from ₹105.4 crore.
Economic Times used the company's own business measures. Beauty gross merchandise value (GMV) was ₹4,454 crore. GMV is the full value of goods sold. Net sales value (NSV) is the value after returns and discounts. Beauty NSV grew 28% and beauty EBITDA rose 51%.
House of Nykaa is the group of brands Nykaa owns, such as Kay Beauty, Dot & Key and Nykaa Cosmetics. Its NSV grew 36%. Its annualised GMV run rate crossed ₹4,000 crore.
Fashion is smaller but grew faster. Economic Times said fashion NSV rose 47% to ₹509 crore. Its EBITDA margin turned positive at 0.2%, from minus 3.5% a year ago. CNBC-TV18 and Inc42 said fashion revenue grew 42.9% to ₹287.2 crore. Its loss before exceptional items narrowed to ₹7.7 crore from ₹21.4 crore.
These figures measure different things, so they do not contradict each other. A business can be EBITDA-positive and still show a loss after depreciation and other costs.
Stores, fast delivery and shop supplies
- Stores: Nykaa has 338 beauty stores in 111 cities, after adding 14 in six new cities this quarter. Store space rose 26% to over 3.4 lakh square feet.
- Nykaa Now: The fast delivery service is in 15 cities and aims for more than 25 by the end of FY27. It promises delivery in 30 to 60 minutes.
- Superstore by Nykaa: This platform supplies beauty products to small shops. Its GMV was ₹328 crore, and registered retailers grew 27% to more than 5.5 lakh.
The Simply Nam deal
Nykaa's board approved buying an 82% stake in Simply Nam Beauty Private Limited for up to ₹33 crore in cash. CNBC-TV18 said the deal is expected to close by 31 December 2026.
Namrata Soni, a celebrity makeup artist, founded Simply Nam in 2020 with Bozzil, a venture studio led by Hanna Strömgren Khan. Soni will keep an 18% stake and serve as Co-Founder and Chief Product Officer. The brand will join House of Nykaa's makeup range. Our business news page covers more company deals.
Why it matters to a common investor
A company that grows sales but not profit can disappoint investors. This quarter, Nykaa's profit before tax grew much faster than its revenue. Its owned brands also grew faster than the overall beauty business.
CNBC-TV18 reported that Nykaa shares closed at ₹355.10 on the BSE, up ₹1.10 or 0.31%. The 52-week range is ₹218.75 to ₹356.50. By our calculation, the close was just ₹1.40 below the 52-week high. None of the reports we read included brokerage views on the results.
Risks to keep in mind
- Fashion still shows a segment loss, though the loss has narrowed.
- New stores and the wider Nykaa Now service cost money. If sales in new cities grow slowly, margins could fall.
- The Simply Nam deal is not yet complete.
- The share is near its 52-week high, and prices there can swing sharply.
- One strong quarter does not promise the next.
What to watch next
Check the full filing for the exact EBITDA margin. Watch whether the Simply Nam deal closes by 31 December 2026. Also watch whether Nykaa Now reaches more than 25 cities by the end of FY27, and whether fashion moves from a smaller loss to a profit. Our results section has more quarterly reviews in simple words.
Words explained
- Profit after tax (PAT): The money left after a company pays all its costs and taxes.
- Year-on-year (YoY): A comparison with the same period a year earlier.
- Consolidated: Results that include the parent company and the companies it controls.
- EBITDA: Profit from daily business before interest, tax and the wear and tear of assets.
- Basis point: One hundredth of a percentage point. So 100 basis points equal 1 percentage point.
- Gross margin: The share of sales left after paying for the goods sold.
- Gross merchandise value (GMV): The full value of goods sold, before returns and discounts.
- Net sales value (NSV): The value of sales after returns and discounts.
- Annualised run rate: A short period's figure stretched to a full year.
- Exceptional items: One-time gains or costs outside normal business.
- 52-week high and low: The highest and lowest share price over the past year.
Sources: Economic Times, CNBC-TV18, Inc42, The Hindu BusinessLine.
This article is for information and education only. It is not investment advice. MarketUpDown is not registered with SEBI as an investment adviser or research analyst. Read our disclaimer.