Nykaa Q1 profit more than triples as revenue climbs 29%; fashion business turns EBITDA positive
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FSN E-Commerce Ventures Ltd., the parent company of Nykaa, reported a sharp rise in first-quarter profit, driven by robust growth in its core beauty business and continued improvement in operational efficiency, while its fashion business turned EBITDA positive during the quarter.
The company reported revenue from operations of ₹2,782 crore for the quarter ended June 30, 2026, up 29.1% from ₹2,154.9 crore in the corresponding quarter last year. Profit after tax jumped to ₹79.8 crore from ₹24.5 crore a year ago, while profit before tax nearly tripled to ₹129.2 crore from ₹43.7 crore.
At the operating level, EBITDA rose 67.8% year-on-year to ₹236.1 crore, with EBITDA margin expanding to 8.5% from 6.5% in the year-ago period, reflecting improved operating leverage and disciplined cost management. Finance costs declined to ₹26.7 crore from ₹30.2 crore in the corresponding quarter last year.
Beauty business remains the growth engine
Nykaa said its Beauty vertical continued to deliver strong momentum during the quarter, supported by healthy customer demand, premiumisation trends and expansion across owned brands and retail channels. The company also continued to deepen its omnichannel presence through physical stores while strengthening its online platform.
The Fashion business maintained its recovery trajectory and achieved EBITDA positivity, aided by improved assortment, better inventory management and greater operating efficiencies, marking another step towards sustainable profitability.
Management highlights profitable growth
Founder, executive chairperson and CEO Falguni Nayar said the company continued to execute its strategy of balancing growth with profitability.
"Our focus remains on building a sustainable and profitable business while continuing to invest in customer experience, technology and our brands. The strong performance this quarter reflects healthy consumer demand and disciplined execution across our businesses," she said.
The company also announced that its board has approved the acquisition of a 51% equity stake in Aminu Wellness Pvt. Ltd. for a consideration of up to ₹32 crore, expanding Nykaa's presence in the wellness segment.
Nykaa said it will continue to invest in brand building, technology capabilities and omnichannel expansion as it seeks to strengthen its leadership position in India's beauty and lifestyle market while improving profitability across businesses.
Shares of FSN E-Commerce Ventures ended 0.70% lower at ₹342.50 apiece on the NSE on Tuesday. The stock has surged over 60% during the past year, outperforming the Nifty Midcap 50 index, which has gained nearly 13% over the same period.