Revenue up 25 per cent; gross margin hits 12-quarter high
FSN ECommerce Ventures, which owns beauty and fashion marketplace Nykaa, reported a sharp improvement in profitability for the September 2025 quarter, posting a net profit of Rs 34.4 crore, compared with Rs 10 crore in the same quarter last year, which is a 244 per cent year-on-year rise.
Operating revenue climbed 25.1 per cent to Rs 2,346 crore, against Rs 1,875 crore in Q2 FY2025, driven by continued strength in the beauty vertical and an uptick in fashion demand.
Ebitda advanced 53 per cent to Rs 158.5 crore from Rs 103.6 crore a year earlier, with margins widening to 6.7 per cent from 5.5 per cent.
Beauty Division Anchors Growth
Nykaa’s consolidated gross merchandise value (GMV) touched Rs 4,744 crore in Q2 FY2026, up 30 per cent year-on-year. Gross profit rose 28 per cent to Rs 1,054 crore, marking the highest margin level seen in the past 12 quarters. This also represented the twelfth consecutive quarter of mid-20s per cent growth in operating revenue.
The beauty division remained the company’s anchor, with GMV rising 28 per cent to Rs 3,551 crore across online channels, physical stores and owned labels under the House of Nykaa.
Nykaa’s cumulative beauty customer base grew 31 per cent year-on-year to around 40 million. Its offline network expanded to 265 beauty outlets across 90 cities after adding 19 stores during the quarter, including in eight new markets. Total retail area rose 37 per cent year-on-year to over 2.7 lakh square feet.
House Of Nykaa Scales Up
The House of Nykaa, spanning beauty and fashion brands, recorded an annualised GMV run rate of about Rs 2,900 crore, up 54 per cent. It generated more than Rs 720 crore in GMV during the quarter and has served over 16 million customers to date across 12 private-label brands.
Within this portfolio, the beauty segment delivered Rs 627 crore GMV, a 74 per cent jump. Dot & Key retained its position as India’s largest D2C skincare brand, crossing an annualised GMV run rate of Rs 1,500 crore with growth above 110 per cent and maintaining a high-teens Ebitda margin.
Nykaa Cosmetics crossed a Rs 400 crore annualised GMV run rate, with new launches contributing nearly one-fifth of revenue. Kay Beauty, which was introduced in partnership with Katrina Kaif, also recorded an annualised GMV run rate above Rs 350 crore. Nykd, Nykaa’s lingerie label, reached Rs 175 crore on an annualised basis, growing about 30 per cent year-on-year, while its sleepwear line more than doubled GMV during the quarter.
eB2B And Fashion Verticals Expand
Superstore by Nykaa, the eB2B distribution arm, expanded rapidly to over 3.3 lakh retailers in 1,100 cities. Its annualised GMV run rate crossed Rs 1,100 crore, rising 25 per cent year-on-year as the platform widened its brand assortment and deepened presence across Tier 2 and 3 markets.
Nykaa Fashion continued its rebound from the previous quarter, reporting 37 per cent GMV growth to Rs 1,180 crore. EBITDA margin improved to negative 3.5 per cent from negative 9 per cent a year earlier, supported by stronger customer engagement and operating leverage.
The platform reported 191 million visits (up 30 per cent), 23 million monthly active users (up 30 per cent), a cumulative customer base of 9 million (up 33 per cent) and more than 2 million orders (up 38 per cent).
Margins Strengthen Further
The company closed the quarter with improved profitability metrics: gross margin expanded by 134 basis points year-on-year, while Ebitda margin improved by 422 basis points, aided by scaling efficiencies and rising contribution from in-house brands. Ecommerce GMV rose 38 per cent sequentially.
Shares of FSN E-Commerce Ventures ended at Rs 246 on the BSE, up 0.22 per cent.
