Nykaa Q3 FY26 Results: Net Profit Surges 143% YoY to ₹63.3 Crore; Revenue Grows 26.7% to ₹2,873 Crore

FSN E-Commerce Ventures Ltd, which operates the Nykaa platform, reported a strong set of earnings for the October–December quarter (Q3 FY26). The company posted a 143% year-on-year jump in consolidated net profit attributable to equity shareholders to ₹63.31 crore, compared to ₹26.12 crore in Q3 FY25, driven by robust festive demand, scale-led operating leverage, and steady execution across its beauty and fashion businesses.

Revenue Performance

Revenue from operations rose 26.7% YoY to ₹2,873.26 crore in Q3 FY26, up from ₹2,267.21 crore in the corresponding quarter last year. Total income for the quarter stood at ₹2,879.52 crore, reflecting strong momentum across categories and channels.

The topline performance came despite continued investments in marketing, technology, and fulfilment, indicating sustained consumer demand and improving monetisation.

EBITDA & Profitability

Profit before tax (PBT) increased sharply to ₹109.62 crore, compared with ₹44.56 crore in Q3 FY25. Operating performance improved meaningfully, supported by higher contribution margins in the beauty segment and better cost absorption from scale.

The quarter also included an exceptional expense of ₹16.36 crore related to the statutory impact of new labour codes. Excluding this non-recurring item, underlying profitability trends remained strong, highlighting structural improvement in the business model.

Factors Behind Performance

Nykaa’s Q3 FY26 performance was shaped by the following key factors:

• Strong festive season demand, particularly in beauty and personal care

• Continued dominance of the Beauty segment, driving both revenue and profitability

• Steady scale-up of owned brands, aiding margin expansion

• Operational efficiencies and cost discipline, partially offsetting higher growth investments

Segment Performance

• Beauty segment: Revenue stood at ₹2,622.36 crore, up from ₹2,060.01 crore last year. Segment results after exceptional items came in at ₹156.61 crore, underscoring the segment’s role as the company’s primary profit engine.
  

• Fashion segment: Revenue increased to ₹235 crore from ₹199 crore a year ago. While the segment continued to report losses at the result level, losses narrowed on a sequential basis, reflecting improving operating leverage.
  

• Others: Smaller businesses contributed ₹15.9 crore in revenue during the quarter.
  

Year-to-Date Performance (9M FY26)

For the nine months ended December 31, 2025:

• Revenue: ₹7,374.18 crore (up from ₹5,888.06 crore)

• Net profit attributable to equity shareholders: ₹121.06 crore (vs ₹45.79 crore in 9M FY25)

• Basic and diluted EPS: ₹0.42 for 9M FY26

These numbers indicate a clear improvement in earnings consistency and profitability at the group level.

Dividend Details

The board did not declare any dividend for Q3 FY26, opting to retain earnings to support growth initiatives and balance-sheet strength.

Strategic Initiatives

The company continued to invest in:

• Expansion of its omnichannel presence

• Scaling of owned and private-label brands

• Strengthening supply chain, technology, and customer experience

These initiatives remain central to Nykaa’s strategy of balancing growth with improving unit economics.

Management Commentary

Management highlighted that the quarter reflected healthy consumer demand, strong execution, and improving operating leverage, while reiterating focus on long-term sustainable growth and profitability.

Sahi’s Take

Nykaa’s Q3 FY26 results mark another step forward in its profitability journey. With beauty continuing to scale profitably and fashion showing signs of stabilisation, the company is increasingly demonstrating that growth and margins can move in tandem an important signal for investors tracking India’s consumer internet leaders.