Market News: Nykaa's Q2 Profit Soars 145% to ₹33 Crore, Revenue Jumps 25%

Nykaa, the prominent online beauty and fashion platform, has announced its financial results for the second quarter of the fiscal year 2025-26, ending September. The company, operated by FSN E-Commerce Ventures, reported a remarkable surge in its net profit, which increased by an impressive 145% year-over-year, reaching ₹32. 98 crore, while this significant jump from ₹13. 44 crore in the same quarter last year underscores Nykaa's strong operational efficiency and growing market presence. The current quarter's profit also surpassed the ₹24. 47 crore recorded in the preceding June quarter, indicating a strong sequential growth trajectory.

Exceptional Revenue Growth

Alongside the substantial profit increase, Nykaa's revenue also demonstrated strong performance, climbing by 25% to ₹2,346 crore in the September quarter. This is a notable increase from the ₹1,875 crore reported in the corresponding quarter of the previous fiscal year. The company's revenue in the June quarter stood at ₹2,155 crore, further highlighting the consistent upward trend, while this revenue growth is primarily attributed to the strong performance of its beauty segment and a significant improvement observed in its fashion business, showcasing the diversified strength of Nykaa's offerings.

Understanding the Expense Landscape

While Nykaa celebrated impressive revenue and profit figures, the company's total expenses also saw an increase, rising by 24% to ₹2,298 crore in the September quarter, while this compares to ₹1,859 crore in the same period last year. In the previous quarter, total expenses were recorded at ₹2,121 crore. The increase in expenses is often a natural consequence of business expansion, increased operational activities, and investments in growth initiatives to support the scaling of operations and market reach.

Management's Strategic Vision

Falguni Nayar, the Founder and CEO of Nykaa, expressed her satisfaction with the quarterly performance, stating that the results reflect the company's accelerated growth rate, while she emphasized that every segment of the company contributed Importantly to this overall growth, highlighting a balanced and comprehensive development across its business verticals. Nayar's statement underscores the effectiveness of Nykaa's multi-faceted approach to market penetration and customer engagement.

Segmental Performance Driving Momentum

The beauty segment, a core pillar of Nykaa's business, continued its stellar performance, consistently achieving over 25% GMV (Gross Merchandise Value) growth for several consecutive quarters. This sustained growth indicates strong consumer demand and Nykaa's dominant position in the online beauty market, while On top of that, the 'House of Nykaa' portfolio, which encompasses the company's owned beauty brands, recorded an impressive 54% year-on-year GMV growth. This solid performance is a testament to the strong demand for. Nykaa's proprietary beauty brands, reflecting successful brand building and product innovation strategies. The fashion business also played a crucial role in the company's overall growth, registering a 37% year-on-year GMV growth. This improvement was Notably bolstered by the introduction of several global brands, including GAP, Guess, and H&M, into Nykaa's fashion portfolio during the current year. The strategic inclusion of such renowned international brands has clearly resonated with consumers, expanding Nykaa Fashion's appeal and market share.

Expanding Customer Reach and Ecosystem Strength

Falguni Nayar also highlighted the significant expansion of Nykaa's customer base, which has now surpassed 4. 9 crore (49 million). This growing customer base is a key indicator of the platform's increasing popularity and reach across diverse demographics. Nayar remarked that this quarter has been strategically important, as the company's long-term growth strategies are now visibly materializing, while she further added that this performance demonstrates the inherent strength and scalability of the entire Nykaa ecosystem, positioning the company for continued success in the competitive e-commerce landscape.

Market Reaction to Results

Following the announcement of these strong financial results, shares of FSN E-Commerce Ventures, Nykaa's parent company, closed at ₹246 per share on the BSE on November 7, while this represented a marginal increase of 0. 22% from its previous closing price, while the slight positive movement in share price reflects a cautious yet optimistic sentiment among investors regarding Nykaa's promising financial trajectory and strategic advancements.