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Revenue from operations rose 28% YoY to Rs 3,006 crore in Q2FY27, against Rs 2,346 crore reported in the same quarter a year ago.
The company’s gross margin improved by 106 basis points (bps) YoY to 46% in the September quarter, compared with 44.9% in Q2FY26. The improvement was supported by a rising contribution from its House of Nykaa portfolio, along with an uptick in marketing income.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 65% YoY to Rs 263 crore in Q2FY27, from Rs 159 crore in the year-ago period. EBITDA margin expanded by 196 bps to 8.7%, compared with 6.8% in Q2FY26.
Beauty business records 28% NSV growth
Nykaa’s beauty vertical reported a gross merchandise value (GMV) of Rs 4,454 crore in Q2FY27. The figure includes its e-commerce business, retail stores, eB2B distribution and House of Nykaa beauty portfolio.
Net sales value (NSV) growth in the beauty vertical stood at 28% YoY during the quarter, while EBITDA increased 51% YoY.The company continued to strengthen its multi-brand beauty retail portfolio, launching more than 330 global, national and emerging beauty brands during the year. Recent additions include Yves Rocher, Oribe, Mamonde, MEDIHEAL, &honey and Purito Seoul, among others.
The launches span brands from France, Japan, South Korea and the US, alongside emerging Indian labels, as Nykaa looks to bring globally trending beauty products to Indian consumers.
Nykaa also hosted the fourth edition of Nykaaland, its immersive beauty festival, bringing together beauty enthusiasts, international and homegrown brands, celebrities and industry experts.
Across its four editions, Nykaaland has attracted more than 100,000 beauty enthusiasts, hosted over 50 masterclasses led by international and Indian beauty artists, and brought together more than 1,500 celebrities, creators and key opinion leaders (KOLs), alongside over 150 international and homegrown brands.
The company said Nykaaland has evolved into a flagship property that deepens consumer engagement, facilitates brand connections and strengthens its role in shaping India’s beauty community.
Nykaa Now expands to 15 cities
The company’s quick delivery service, NYKAA NOW, has expanded its presence to 15 cities, with plans to reach more than 25 cities by the end of FY27.
The platform offers over 1,000 marquee beauty, personal care and wellness brands, with deliveries within 30-60 minutes. Its assortment offers more than twice the beauty and personal care (BPC) stock-keeping unit (SKU) depth of quick-commerce platforms, according to the company.
Nykaa said its curated premium and luxury offerings are gaining traction, with average order value (AOV) three times that of the BPC category on quick-commerce platforms. The platform also recorded a 15% higher frequency of purchase (FOP) compared with the Nykaa platform.
Nykaa’s beauty retail network expanded to 338 stores across 111 cities, following the addition of 14 stores in the September quarter across six new cities. Its total retail space increased 26% YoY to more than 3.4 lakh square feet.
The network comprises 253 multi-brand outlets (MBOs), 69 House of Nykaa owned-brand outlets and 16 exclusive brand experiential formats.
House of Nykaa crosses Rs 4,000 crore annualised GMV run rate
House of Nykaa continued to scale during the quarter, achieving an annualised GMV run rate of more than Rs 4,000 crore and an annualised NSV of over Rs 2,300 crore in Q2FY27.
The portfolio recorded 36% YoY NSV growth and has served more than 19 million customers to date.
The company continued to expand its owned-brand portfolio through product innovation, packaging and formulation development.
Dot & Key launched eight new shades of its Tinted Sunscreen in updated packaging, along with its Dragon Fruit Jelly Bounce Moisturizer, designed to offer lightweight hydration for oily and combination skin.
Kay Beauty expanded into skincare during the quarter and marked its first anniversary in the UK through its presence on Space NK and TikTok Shop.
Nykaa Cosmetics collaborated with Sara Tendulkar and introduced new lipstick launches as it continued to strengthen its position as a trend-led beauty brand.
The company’s owned brands also received recognition at several industry awards. Nykaa Cosmetics’ Matte to Last Lipstick won the Best Lipstick category at the Grazia Indie Awards, while Kay Beauty’s Lash Maximizer Mascara was recognised as Best Mascara at the same awards.
Kay Beauty’s Soft Matte Full Coverage Concealer received the Reader’s Choice award at the Vogue Beauty & Wellness Honours, while its Hydra Glow Tinted Sunscreen SPF 40 PA++ was named Best Base Product at the ELLE Beauty Awards.
Superstore by Nykaa expands retailer network
Nykaa’s B2B distribution platform, Superstore by Nykaa, reported GMV of Rs 328 crore during the quarter, supported by an expanding retailer network and wider geographic reach.
Its registered retailer base grew 27% YoY to more than 5.5 lakh, making it one of India’s fastest-growing beauty retail distribution platforms, the company said.
The growth was achieved while keeping the number of business development executives (BDEs) constant over the past year, reflecting improved productivity.
During the quarter, Superstore expanded its portfolio across new-age skincare, makeup and wellness brands, with launches including Recode, Lacto Calamine, Clay Co., BLA BLI BLU, Renee and Love Earth.
The platform also launched ‘Meri Dukan’, a personalised shopping experience aimed at helping retailers make more informed purchasing decisions.
The feature uses retailers’ purchase history, location and store type to highlight products due for replenishment, identify local market demand, surface daily deals and price drops, and recommend relevant products and brands.
Fashion business records 47% NSV growth; turns EBITDA-positive
Nykaa’s fashion business continued to report strong growth alongside an improvement in profitability. NSV increased 47% YoY to Rs 509 crore in Q2FY27.
The business also reported an improvement in EBITDA margin, measured as a percentage of NSV, to 0.2% in Q2FY27 from -3.5% in the corresponding quarter last year.
Nykaa Fashion strengthened its premium and luxury positioning with the launch of Nykaa Fashion LUXE, a dedicated shop-in-shop destination bringing together international luxury brands and leading Indian designer labels across fashion, accessories, jewellery, watches and home.
The offering includes curated selections, personalised concierge services, styling and customisation options, with products sourced directly from brand partners and authorised distributors.
Nykaa Fashion also recorded more than 250 brand launches during the quarter, including the exclusive launch of COS.
Nykaa to acquire 82% stake in Simply Nam for up to Rs 33 crore
Separately, Nykaa’s board of directors approved the acquisition of an 82% equity stake in Simply Nam Beauty Private Limited on a fully diluted basis for a consideration of up to Rs 33 crore.
Founded in 2020 by celebrity makeup artist Namrata Soni and Bozzil, a venture studio founded and led by Hanna Strömgren Khan, Simply Nam combines Soni’s professional makeup expertise with clinically tested, expert-backed formulations developed around consumer needs.
Following the transaction, Soni will hold an 18% stake in the company and serve as Co-Founder and Chief Product Officer (CPO). She will bring her expertise across product development, content creation, brand strategy, marketing and education.
The acquisition will add to House of Nykaa’s makeup portfolio, which caters to a diverse consumer base, ranging from trend-led makeup for younger audiences to celebrity-led beauty brands with inclusivity at their core.
With Simply Nam, Nykaa aims to strengthen its presence in the specialised, premium and professional-grade makeup segment.
The company expects to combine Nykaa’s scale, reach, omnichannel ecosystem and expertise in scaling makeup brands with Simply Nam’s innovation, formulations and education-led community to unlock synergies and support future growth.
The transaction is expected to close in Q3FY27, subject to regulatory approvals and fulfilment of closing conditions.
Nykaa strengthens partnership with L’Oréal
Nykaa also strengthened its strategic partnership with L’Oréal through a collaboration with BOLD, the French beauty major’s corporate venture capital fund.
The two companies will jointly invest in high-growth Indian beauty and personal care brands.
The partnership will combine Nykaa’s consumer ecosystem, retail network and distribution capabilities with L’Oréal’s global beauty expertise, mentorship and strategic guidance to support emerging brands in scaling their businesses.
The collaboration is also aimed at enabling founders to retain operational and creative control while benefiting from the strategic support and resources of both companies.
Management commentary
Commenting on the quarterly performance, Falguni Nayar, Executive Chairperson, Founder and CEO of Nykaa, said the company’s performance reflected the strength of its ecosystem, with each business contributing to growth and productivity gains.
“Our performance this quarter reflects the strength of the Nykaa ecosystem, with each of our businesses contributing to growth and productivity gains. We continued to improve operational efficiency, particularly across marketing and overheads. Beauty and Fashion are seeing accelerated growth, while House of Nykaa and Wellness offer significant runway for long-term growth. We remain focused on building differentiated businesses that serve our consumers and deliver sustainable growth over the long term,” Nayar said.
Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
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