FSN E-Commerce Ventures, owner of Nykaa, recorded a consolidated net profit of Rs 101.2 crore in Q2 FY27, more than tripling year-on-year, supported by robust growth across its beauty and fashion businesses alongside margin expansion.
- Q2 net profit jumped 207% to Rs 101.2 crore year-on-year
- Revenue grew 28% to Rs 3,006 crore with improved EBITDA margins
- Strategic acquisition of Simply Nam to enter premium makeup segment
What happened
Nykaa's parent company FSN E-Commerce Ventures reported a consolidated net profit of Rs 101.2 crore for Q2 FY27, a 207% increase compared to Rs 33 crore in the same quarter a year prior. Revenue rose 28% to Rs 3,006 crore, driven by strong beauty and fashion sales.
The beauty segment alone generated Rs 2,699.7 crore in revenue, up 27%, with profit before exceptional items surging 71%. The fashion vertical grew 43% in revenue but remained loss-making, albeit with narrowed losses. The company also expanded physical stores to 338 across 111 cities and made key acquisitions, including an 82% stake in Simply Nam, targeting premium vegan beauty products.
Why it matters
Nykaa’s robust profit growth and expanding revenue illustrate the continued strength of its core beauty business coupled with promising developments in its fashion segment. The 65% increase in EBITDA and margin expansion to 8.7% reflect improving operational efficiency and profitability.
The acquisition of Simply Nam marks a strategic push into the premium professional makeup space, potentially broadening Nykaa’s market reach and product offerings. The company's expanding store network and quick commerce setup signal efforts to deepen customer engagement and tap into fast-growing demand for speedy product delivery.
What to watch next
Market watchers should track Nykaa’s progression in scaling its fashion vertical towards profitability and the performance of the newly acquired Simply Nam brand in capturing premium beauty consumers. The success of these initiatives could significantly impact overall business diversification.
Additionally, monitoring growth in quick commerce via Nykaa Now, which aims to expand to over 25 cities, will be key in assessing the company’s ability to leverage faster delivery as a competitive edge. Continued enhancements in customer acquisition, retention, and brand portfolio expansion will also remain crucial drivers.