Nykaa Now spans 13 cities and 1,000-plus brands; Q1 profit hit Rs 80 crore. Nykaa targets 25 cities by fiscal 2027 and expects Aminu deal to close in Q2.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
FSN E-Commerce Ventures, the parent of beauty and fashion retailer Nykaa, on Tuesday reported a 226% jump in consolidated net profit to Rs 80 crore for the June quarter, its first fiscal quarter, and said its rapid delivery beauty service Nykaa Now is scaling without hurting margins. Anchit Nayar, chief executive of Nykaa Beauty, told analysts that higher purchase frequency and consistent average order values are offsetting the added fulfillment costs of quick commerce. The remarks addressed investor questions about the economics of the format.
Revenue from operations rose 29% from a year earlier to Rs 2,782 crore. Gross merchandise value grew 34% to Rs 5,590 crore. Ebitda climbed 68% to Rs 236 crore, pushing the margin to 8.5% from 6.5%. FSN E-Commerce said the profit growth came from accelerating sales across both beauty and fashion after years of investment in assortment expansion and omnichannel retail.
"We don't think this will be dilutive," Nayar said. "The increase in purchase frequency and average order values staying consistent are offsetting the increase in fulfillment costs. Despite Nykaa Now having become meaningful over the past several quarters, we've still shown improvement this quarter."
Nykaa's argument rests on repeat behaviour. If customers order more often and keep average order values steady, the extra cost of delivering in hours is spread across a larger stream of orders. Anchit Nayar said repeat customers now account for a growing share of revenue. "We are now seeing a higher share of revenue come from repeat customers," he said, adding that improved targeting and a stronger assortment had lowered customer acquisition costs, particularly in fashion.
Nykaa Now operates in 13 cities, up from 3 a year earlier, and Nykaa targets 25 cities by the end of fiscal 2027. The service uses the retailer's physical stores as hyperlocal fulfilment hubs, pulling orders from nearby stock. Nykaa Now lists more than 1,000 beauty and personal care brands, according to the company's investor presentation.
The beauty business posted net sales value growth of 29%, to Rs 2,371 crore. Fashion grew 54% to Rs 451 crore, helped by customer additions and brand expansion; the Nike partnership also contributed. Fashion swung to Ebitda of Rs 40 lakh from a loss of Rs 18 crore, its first Ebitda-positive quarter. Beauty Ebitda rose 48% to Rs 244 crore, with the margin at 10.3% versus 9%.
Founder and chief executive Falguni Nayar said growth came from demand and execution rather than a single driver. "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," she said.
Executives said customer acquisition, premium products, brand partnerships and technology-led improvements in merchandising and personalisation helped Nykaa outpace the broader market. Nykaa Fashion chief executive Abhijeet Dabas said the company retained its 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," he said.
Nykaa's consumer base grew 33% to 60 million in the June quarter. It added more than 160 brands across beauty and lifestyle, lifting its portfolio to over 10,000 brands, and opened 11 stores, ending the quarter with 324 outlets in 105 cities. Owned brands grew 43% from a year earlier.
Management said the September quarter is likely to remain the strongest because of festive demand, though beauty depends less on seasonal shopping than many discretionary categories because most of its demand comes from everyday-use products.
The board approved the purchase of a 51% stake in Aminu Wellness for up to Rs 32 crore. Nykaa said Aminu's premium dermocosmetic positioning and proprietary formulations, backed by in-house research, would strengthen its House of Nykaa portfolio, which now spans 13 consumer brands. Aminu, founded in 2019, makes skincare products sold through salons and clinics, with direct-to-consumer sales as well. It reported FY26 revenue of Rs 19.4 crore, more than double the Rs 8.4 crore it reported three years earlier, and has a portfolio of more than 30 products with over 30 proprietary formulations.
Nykaa said it will acquire the remaining 49% stake over the next few years. Aminu's founders, Prachi Bhandari and Aman Mohunta, will continue to run the business.
The deal is expected to close in the second quarter of fiscal 2027, subject to regulatory approvals.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.