Nykaa Q1 FY26 Results: A Deep Dive into Growth and Profitability

Nykaa's Q1 FY26 Results reflect strong execution, with a 26% YoY GMV surge to ₹4,182 Cr and a 79% jump in PAT to ₹24 Cr, fueled by continued momentum in its profitable Beauty segment and a sharp growth revival in Fashion.

Table of Contents 

1. Company overview
2. Market Expectations 
3. Market Reaction to Q1FY26 Results
4. Financial Highlights
5. Key Performance Indicators (KPIs) by Segment (Q1 FY26)
6. Brand Performance
7. Conclusion
8. FAQs

Company overview

Nykaa, operated by the publicly-listed FSN E-Commerce Ventures Ltd., is one of India's leading lifestyle and beauty retailers. Founded in 2012 by Falguni Nayar, the company began as a dedicated e-commerce platform for beauty and personal care (BPC) products, offering a curated selection of domestic and international brands. It has since expanded its portfolio to include fashion and wellness, establishing a strong omnichannel presence through its popular website, mobile app, and a network of physical stores across the country. Nykaa is distinguished by its content-led marketing strategy and the successful development of its co-owned brands, such as Kay Beauty and Dot & Key, making it a go-to destination for millions of Indian consumers.

Market Expectations 

Overall sentiment was positive, with analysts anticipating a strong quarter driven by sustained momentum in the core beauty business and a notable improvement in the fashion segment's performance. The market was looking for healthy double-digit growth while also seeking clear signs of improving profitability.

Consolidated Growth: The consensus was for Gross Merchandise Value (GMV) and revenue to grow in the mid-to-high 20s percentage range year-over-year. Revenue growth was expected to be slightly lower than GMV growth.

These expectations were largely aligned with the Nykaa Q1 FY26 Results, which confirmed robust growth and profitability.

Market Reaction to Q1FY26 Results

On 13th August 2025, following the announcement of Nykaa Q1 FY26 Results on 21st August, the company's shares opened at ₹215.00, a gap-up from previous close of ₹204. The stock touched an intraday high of ₹220, closing at ₹215.

Financial Highlights

Nykaa has posted a robust performance in Q1FY26, where the consolidated revenue from operations has increased to ₹2,155 crores, up by 23% from ₹1,746 crores in Q1FY25. PAT reached ₹24 crores, up by 79% from ₹14 crores in Q1FY25.

Consolidated Financial Performance Summary (Q1 FY26 vs. Q1 FY25)

Key Performance Indicators (KPIs) by Segment (Q1 FY26)

This table highlights Nykaa's effective dual-engine strategy, showcasing the distinct characteristics and strengths of its two core segments. 

• The Beauty division remains the cornerstone of the business, demonstrating impressive scale with a Gross Merchandise Value (GMV) of ₹3,208 crore and a substantial customer base of 37 million. Its strong 26% year-over-year GMV growth is complemented by a healthy 9.0% EBITDA margin, underscoring its role as the company's profitable growth driver. 
• The Fashion segment is in a phase of high-growth revival, posting a solid 25% GMV growth to reach ₹964 crore. While still operating at a loss with an EBITDA margin of -6.2%, the strong top-line growth signals a successful turnaround. The customer behaviour in each segment is notably different; Beauty thrives on high transaction volume (14.5 million orders) with a lower Average Order Value (AOV) of ₹2,009, while Fashion focuses on higher-value transactions, evidenced by a significantly larger AOV of ₹4,504 from a more targeted customer base.

Brand Performance

House of Nykaa's Brand Performance Snapshot (Annualised GMV Run-Rate)

The "House of Nykaa" brand portfolio has emerged as a powerful growth engine, demonstrating explosive and consistent expansion over the last five years. Achieving a remarkable seven-fold increase in that period, the annualised GMV run-rate has now surged to an impressive ₹2,700 crore, marking a 57% year-over-year growth. This trajectory highlights Nykaa's successful strategy of building and scaling its own brands, which not only drives significant revenue but also enhances margin profiles. The portfolio's ability to create category leaders like Dot & Key, now a ₹1,500 crore+ brand, and the global expansion of Kay Beauty, underscores its strategic importance in cementing Nykaa's market leadership and long-term profitability.

Conclusion

Nykaa Q1 FY26 Results highlight how the company has commenced fiscal year 2026 on a robust footing,  showcasing strong all-round performance with a 26% year-over-year surge in consolidated GMV to ₹4,182 crore and a notable 79% rise in Profit After Tax to ₹24 crore. This growth is driven by a powerful dual-engine strategy: the core Beauty and Personal Care segment delivered consistent, profitable growth with a 26% increase in GMV, while the Fashion vertical marked a significant turnaround with 25% GMV growth and a 304 basis point improvement in its EBITDA margin. A key catalyst is the exceptional performance of the "House of Nykaa," with its owned brands achieving an annualized GMV run-rate of ₹2,700 crore on 57% YoY growth, spearheaded by the breakout success of Dot & Key. Supported by an expanding omnichannel presence, now at 250 stores, and improving capital efficiency, Nykaa's results signal a clear strategy of leveraging brand power and operational excellence to drive sustainable, profitable growth across its platforms

Frequently Asked Questions (FAQs)

Q1: What were Nykaa's main financial highlights for Q1 FY26?

Nykaa reported a strong Q1 FY26 performance with a 23% year-on-year increase in revenue from operations to ₹2,155 crore. Its Profit After Tax (PAT) saw a significant surge, jumping 79% to ₹24 crore, indicating improved profitability.

Q2: How did Nykaa's Beauty and Fashion segments perform in Q1 FY26?

Both segments showed strong growth. The Beauty and Personal Care (BPC) segment, the company's core business, delivered a 26% year-on-year growth in Gross Merchandise Value (GMV). The Fashion segment also saw a notable turnaround, with its GMV growing by 25% year-on-year.

Q3: What role did "House of Nykaa" brands play in the company's Q1 FY26 success?

Nykaa's owned brands, referred to as the "House of Nykaa," were a key growth driver. The portfolio achieved an impressive annualized GMV run-rate of ₹2,700 crore, reflecting a 57% year-on-year growth. Brands like Dot & Key were particularly strong performers, highlighting the success of Nykaa's brand-building strategy.

Q4: Did Nykaa's profitability improve in Q1 FY26?

Yes, profitability improved significantly. Nykaa's Profit After Tax (PAT) surged by 79% to ₹24 crore. The company also saw an expansion in its key margins, with EBITDA margin improving to 6.5% and Contribution Margin reaching 19.9%.

Q5: What is the outlook for Nykaa's business?

Nykaa's outlook appears to be one of sustainable and profitable growth. The company is leveraging its dual-engine strategy of a profitable beauty business and a reviving fashion segment, combined with the strong performance of its owned brands and expanding omnichannel presence. The focus is on brand power and operational excellence to continue its growth trajectory.