Nykaa profit more than doubles in Q3 as beauty and fashion segments surge

Beauty ecommerce platform Nykaa saw its quarterly after-tax profit more than double to Rs 67.7 crore year-on-year, driven by strong growth in its beauty business as well as growing traction for its fashion arm.

The Falguni Nayar-led company saw its operating revenue jump by 27% in Q3FY26 to Rs 2,873.26 crore from Rs 2,267.21 in the corresponding quarter in the previous year. Sequentially, its revenue rose 22% from Rs 2,345.98 crore, as its bottom line improved from Rs 33 crore it made in the September quarter. It had posted a profit at Rs 26.4 crore.

Steady margin expansion, from 6.2% last year to 8% in the current quarter, helped improve the company’s bottom line. Nykaa also clocked its highest-ever quarterly gross merchandise value of Rs 5,795 crore as wedding season, and festive sales surged during the quarter.

The company’s largest business, the beauty and personal care retail, saw its best ever GMV performance, a growth of Rs 4,302 crore up 27% from last year. The shift was driven by strong performance of the ecommerce platform, demand for its House of Nykaa brands and physical retail. The segment made Rs 156 crore in profit as compared to Rs 100 crore last year.

The company’s owned brands under the House of Nykaa ecosystem has been emerging as key lever for its growth and expansion. The House of Nykaa beauty portfolio, which includes Dot & Key, Earth Rhythm, Kay Beauty among others clocks an annualised GMV run Rate of Rs 3,100 crore.

“Nykaa Fashion’s accelerated recovery in FY2026 is the direct outcome of a focused strategy centered on depth of assortment, marquee brand partnerships, and rising customer engagement,” shared the company in a press note filed with exchanges.

The company’s investments in core and emerging categories during the year yielded results, with a GMV growth of 31% and a topline of Rs 235 crore. However, the growth came at a cost as the segment continues to remain in the red. It saw a loss of Rs 20 crore from Rs 12 crore in the previous quarter, hurt by high operating leverage and engagement costs.