The e-commerce and beauty retailer posted a strong fourth quarter with profit quadrupling year-on-year.
Strong beauty demand, expanding retail operations, and AI-led customer experiences helped Nykaa deliver its strongest quarterly growth in three years.
Nykaa delivered one of its strongest financial performances since listing, crossing the Rs 10,000 crore revenue milestone for the first time while sharply improving profitability across both beauty and fashion operations.
The Indian beauty and fashion retailer reported a powerful fourth quarter for FY26, with profit more than quadrupling year-on-year as consumer demand remained strong across online commerce, physical retail, premium beauty products, and owned brands.
The performance reflects how Nykaa has gradually evolved from a beauty-focused e-commerce platform into a multi-category consumer ecosystem combining digital retail, physical stores, AI-driven personalization, distribution infrastructure, and proprietary brands.
Nykaa Posts Strongest Revenue Growth in 12 Quarters
Nykaa reported Q4 FY26 revenue from operations of Rs 2,648 crore, representing a 28 percent year-on-year increase and marking the company’s highest quarterly growth rate in the last 12 quarters.
Gross merchandise value also climbed 28 percent to Rs 5,241 crore during the quarter.
Profitability improved even more sharply.
Net profit surged to Rs 79 crore from Rs 19 crore a year earlier, while EBITDA rose 67 percent to Rs 223 crore.
The company’s EBITDA margin expanded to 8.4 percent, the highest margin level in Nykaa’s history.
Gross profit for the quarter increased 32 percent to Rs 1,203 crore.
Annual Revenue Crosses Rs 10,000 Crore for the First Time
For the full financial year ending March 2026, Nykaa officially crossed the Rs 10,000 crore revenue mark for the first time since the company’s founding.
Annual revenue from operations rose 26 percent to Rs 10,022 crore, while annual net profit increased to Rs 204 crore compared to Rs 72 crore in FY25.
Gross profit for the year climbed 30 percent to Rs 4,516 crore, while EBITDA rose 59 percent to Rs 752 crore.
The company also reported a profit before tax of Rs 330 crore after exceptional items.
Nykaa said it has now maintained “mid-20s growth” consistently for the past 14 quarters, signaling a much stronger balance between growth and profitability than many internet-first retail businesses.
Beauty Business Continues Driving Growth
Nykaa’s beauty division remained the company’s largest growth engine during FY26.
Beauty GMV increased 27 percent year-on-year to Rs 14,954 crore, while revenue from operations reached Rs 9,139 crore.
The segment generated EBITDA of Rs 819 crore during the year.
The company significantly expanded its premium beauty portfolio by launching more than 200 global brands, including Chanel Beauty, Armani Beauty, Kylie Cosmetics, SK-II, and Paula’s Choice.
At the same time, Nykaa accelerated physical retail expansion.
The retailer added 76 stores during FY26, taking its total retail network to 313 stores across 99 Indian cities.
The company increasingly focused on experiential retail concepts, including fragrance-led stores and community-centered engagement spaces designed to deepen customer interaction beyond transactional shopping.
AI Is Becoming Central to Nykaa’s Strategy
Artificial intelligence is increasingly becoming a core operational layer inside Nykaa’s business.
The company highlighted several AI-driven initiatives across both beauty and fashion verticals, including its AI-powered Virtual Skin Analyzer, which offers personalized skincare recommendations based on customer inputs and analysis.
Nykaa also expanded “Nykaa Muse,” its virtual fashion try-on platform designed to improve digital discovery and customer engagement.
The company’s AI investments reflect a broader retail trend where personalization, recommendation systems, virtual testing, and predictive commerce are becoming increasingly important competitive advantages.
Founder and CEO Falguni Nayar described AI as a “powerful enabler” helping the company improve personalization, efficiency, and scalability.
Fashion Business Moves Closer to Profitability
Nykaa’s fashion division also posted strong growth during FY26.
Fashion GMV rose 30 percent year-on-year to Rs 4,954 crore, while segment revenue reached Rs 832 crore.
Most notably, the division sharply improved profitability.
The fashion segment’s EBITDA loss narrowed to Rs 37 crore from Rs 93 crore a year earlier.
In Q4 FY26, the business turned EBITDA-positive for the first time, posting Rs 1 crore in EBITDA compared with a loss of Rs 29 crore during the same quarter last year.
Men’s wear emerged as one of the strongest-performing categories, growing 60 percent year-on-year, while kidswear and home categories expanded 50 percent and 40 percent, respectively.
Owned Brands and B2B Distribution Are Expanding Rapidly
Nykaa’s owned brands portfolio, House of Nykaa, continued scaling aggressively during FY26.
The portfolio achieved an annualized GMV run-rate of Rs 3,176 crore, representing 49 percent year-on-year growth.
Nykaa said the portfolio now serves more than 17 million customers across 12 beauty and fashion brands.
Meanwhile, Superstore by Nykaa, the company’s B2B distribution platform, continued growing rapidly.
The platform expanded nearly fourfold over the last three years to Rs 1,187 crore in GMV.
Nykaa said Superstore now serves approximately 3.8 lakh transacting retailers across more than 1,000 cities in India.
Stronger Balance Sheet and Improving Cash Flow
Nykaa also strengthened its financial position during FY26.
Total assets rose to Rs 4,611 crore, while cash and bank balances increased to Rs 418 crore.
Borrowings declined significantly from Rs 961 crore to Rs 747 crore, while net debt improved by 47 percent.
Cash flow from operations rose to Rs 644 crore, reflecting stronger underlying business generation and improving operating efficiency.
The company also completed its acquisition of clean beauty brand Earth Rhythm, strengthening its position in sustainable and naturally focused beauty products.
Nykaa Is Evolving Beyond E-Commerce
Nykaa’s FY26 performance highlights how the company is gradually transforming beyond a traditional online beauty retailer.
The business increasingly operates as a multi-engine consumer platform combining e-commerce, owned brands, AI personalization, physical retail, B2B distribution, and experiential commerce.
That diversification is becoming increasingly important as India’s premium consumer market expands and competition intensifies across online retail.
For Nykaa, profitability growth alongside scale may now matter as much as topline expansion itself.
The company’s latest results suggest it is beginning to achieve both simultaneously.
Read more news, and follow us on Instagram.
