Bengaluru: Nykaa said on Tuesday its rapid-delivery beauty offering Nykaa Now has achieved sufficient scale without hurting profitability, with higher purchase frequency and steady basket sizes offsetting the higher costs of quick commerce, as the company looked to ease investors’ concerns around the economics of the format.
The service has expanded to 13 cities from just 3 a year earlier and is expected to reach 25 cities by the end of fiscal year 2027 (FY27), supported by Nykaa's network of 324 stores across 105 cities that serve as hyperlocal fulfilment hubs. Nykaa Now currently offers more than 1,000 beauty and personal care brands, according to the company’s investor presentation.
“We don’t think this will be dilutive. The increase in purchase frequency and average order values staying consistent are offsetting the increase in fulfillment costs,” Anchit Nayar, chief executive of Nykaa Beauty, told analysts on Tuesday. “Despite Nykaa Now having become meaningful over the past several quarters, we’ve still shown improvement this quarter.”
The comments came as FSN E-Commerce Ventures Ltd, Nykaa's parent, reported a 226% year-on-year jump in consolidated net profit to ₹80 crore in the June quarter, driven by accelerating growth across its beauty and fashion businesses as years of investment in assortment expansion and omnichannel retail began translating into stronger profitability.
Revenue from operations rose 29% year-on-year to ₹2,782 crore in the quarter ended 30 June, while gross merchandise value (GMV) grew 34% to ₹5,590 crore. Ebidta (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 68% to ₹236 crore, with Ebitda margin expanding to 8.5% from 6.5% a year earlier.
Nykaa’s beauty business posted 29% year-on-year growth in net sales value (NSV) to ₹2,371 crore, while fashion grew 54% to ₹451 crore, aided by customer additions, a broader brand portfolio and its partnership with Nike. Fashion also reported positive Ebitda of ₹40 lakh, compared with a loss of ₹18 crore a year earlier, marking its first Ebitda-positive quarter. Beauty Ebitda rose 48% to ₹244 crore, with margin improving to 10.3% from 9%.
Management attributed the broad-based growth to a combination of stronger consumer demand and sustained execution. “There’s no single reason. It’s a combination of a good market, strong execution and continuing to build the right platform, marketing and technology,” Nykaa’s founder, executive chairperson and chief executive Falguni Nayar said.
Executives said continued customer acquisition, premiumisation, brand partnerships and technology-led improvements in merchandising and personalisation helped Nykaa outpace the broader market. The fashion business also continued to benefit from its strategic partnership with Nike, although management said the underlying platform—not the partnership alone—was driving growth.
“We still retain our guidance of growing the fashion business three to three-and-a-half times over the next four to five years. The numbers you are seeing are largely reflective of the underlying platform’s growth,” said Abhijeet Dabas, chief executive of Nykaa Fashion.
The company also highlighted improving marketing efficiency, with repeat customers accounting for a growing share of sales. “We are now seeing a higher share of revenue come from repeat customers,” Anchit Nayar said, adding that improved targeting and a stronger assortment had lowered customer acquisition costs, particularly in fashion.
During the quarter, Nykaa’s consumer base grew 33% year-on-year to 60 million, while it added more than 160 brands across beauty and lifestyle, taking its portfolio to over 10,000 brands. It also opened 11 new stores, ending the quarter with 324 outlets across 105 cities, while its portfolio of owned brands grew 43% year-on-year.
Management said the September quarter is likely to remain the strongest because of festive demand, although beauty remains less dependent on seasonal shopping than many discretionary categories because much of demand comes from everyday-use products.
Separately, the board approved the acquisition of a 51% stake in Aminu Wellness Pvt. Ltd. for up to ₹32 crore to strengthen Nykaa’s premium skincare portfolio. The Mumbai-based company said Aminu’s premium dermocosmetic positioning, proprietary formulations and in-house research and development capabilities would strengthen its House of Nykaa portfolio, which currently spans 13 consumer brands.
Founded in 2019, Aminu manufactures and sells skincare products across salons, clinics and direct-to-consumer channels. The company reported FY26 revenue of ₹19.4 crore, up from ₹8.4 crore three years earlier, and has built a portfolio of more than 30 products with over 30 proprietary formulations.
Nykaa said it would acquire the remaining 49% stake over the next few years under the terms of the transaction, while Aminu’s founders, Prachi Bhandari and Aman Mohunta, would continue to run the business. The transaction is expected to close in the second quarter of FY27, subject to regulatory approvals.