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Nykaa kicked off FY26 with a glow-up that would make any beauty influencer proud. The online-to-offline retailer saw its profits surge nearly 80 per cent, riding on double-digit sales growth in both its beauty and fashion segments. At a time when many consumer-facing brands are feeling the pinch of muted spending, Nykaa seems to be strutting down the runway unbothered.
Nykaa Q1 FY26 performance snapshot
| Metric | Q1 FY26 | Q1 FY25 | YoY change |
|---|---|---|---|
| Revenue (Rs crore) | 2,155 | 1,746 | 23.4 per cent |
| Net profit (Rs crore) | 24.47 | 13.64 | 79.4 per cent |
| GMV (Rs crore) | 4,182 | 3,319 | 26 per cent |
| Beauty GMV (Rs crore) | 3,208 | 2,535 | 26.6 per cent |
What drove the numbers?
- Beauty still the crown jewel: The segment posted Rs 3,208 crore in GMV (gross merchandise volume), helped by omni-channel expansion and new brand launches.
- Fashion’s steady climb: While smaller than beauty, the fashion vertical contributed meaningfully, aided by wider assortments and seasonal campaigns.
- Execution wins: Resilient store footfalls, better supply chain management, and premiumisation trends lifted both margins and ticket sizes.
Our take
Nykaa’s near-80 per cent profit jump is encouraging, but the absolute number, Rs 24 crore, is still modest compared to its lofty valuation. With a P/E north of 880, the market is clearly pricing in years of rapid growth ahead. The challenge? Delivering that growth while defending margins in an increasingly competitive space.
About the company
FSN E-Commerce Ventures, better known as Nykaa, is India’s leading beauty, wellness and fashion platform. Founded by Falguni Nayar in 2012, the company has built a hybrid playbook, selling through its website and app, alongside 100-plus physical stores. Its portfolio spans global names like MAC and Estée Lauder to its own House of Nykaa labels.
Should you add Nykaa’s shares to your portfolio?
If you’re tempted to jump in on the back of one strong quarter, remember: good investing is less about chasing the latest winners and more about building a portfolio that can weather many seasons.
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Disclaimer: This article was crafted with the aid of artificial intelligence and meticulously reviewed and edited by our human experts to ensure accuracy and provide valuable insights. It’s intended for informational purposes only. We encourage you to conduct your own thorough research before making any investment decisions.
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