A surge in growth has put Nykaa back in the spotlight: revenue climbed about 22–23 percent year-on-year to approximately ₹2,155 crore in the June quarter of the 2025 fiscal year, while net profit leapt 79 percent to around ₹24 crore. Gross merchandise value (GMV) rose by a strong 26 percent, and the company improved its EBITDA margin by one percentage point, reaching 6.5 percent. These numbers suggest that the business is regaining momentum after finishing the previous year on a cautious note .
The company's strength in the premium beauty segment remains evident. In the latest quarter, Nykaa added prestigious brands such as Chanel Beauty & Fragrance, Armani Beauty, Supergoop, Anua, Aestura, Chantecaille, and Paula’s Choice to its offerings.
The popularity of premium beauty products was apparent during Nykaa’s “Pink Summer Sale,” which lifted both sales and overall margins. These results reinforce Nykaa’s ability to attract higher-value purchases and maintain healthy profitability by focusing on exclusive, high-end cosmetics .
Nykaa now operates over 250 beauty stores in 82 cities, covering more than 2.5 lakh square feet of retail space—an increase of about 36 percent compared to the previous year. These stores are more than just shops; they’re designed as experiential destinations offering services such as hair styling, nail bars, and makeovers.
Such features not only enhance the shopping experience but also help drive higher conversion rates and encourage customers to spend more. Encouragingly, stores contributed to a 33 percent increase in GMV for the quarter, proving that physical retail remains a profitable growth channel .
Nykaa’s rapid delivery service, “Nykaa Now,” currently operates in seven cities through more than 50 micro-fulfillment centers. Over 1.3 million orders have already been delivered via this service, which promises delivery in as little as 30 minutes and up to 120 minutes.
This capability is key for capturing impulse purchases in beauty, fragrance, and personal care, allowing the company to compete with quick-commerce rivals. The company has emphasized that growth will be “sustainable,” indicating that the rollout of this service will continue while keeping an eye on unit economics and profitability .
Nykaa’s portfolio of owned brands is playing a growing role in the company’s profits. The annualized GMV run-rate for the beauty segment of “House of Nykaa” reached approximately ₹2,300 crore, and the total including all categories hit around ₹2,700 crore. Dot & Key alone is generating about ₹1,500 crore annually, boasting high-teens EBITDA margins.
Nykaa Cosmetics has become a market leader in items such as lipsticks and eyeshadows. Additionally, Kay Beauty is set to enter the UK market through a partnership with Space NK, paving the way for international expansion. These brands not only add to sales but also bring higher margins and greater control over product storytelling and distribution .
Nykaa’s business-to-business platform, Superstore, has seen strong traction, serving over 300,000 retailers across 1,100 cities. Year-on-year GMV growth for this channel was about 40 percent, with improvement in both EBITDA and contribution margins.
By reaching into smaller cities and towns, Superstore strengthens Nykaa’s distribution network and may also improve its bargaining power with larger brands. Effective curation of SKUs and disciplined credit management will be important to ensure this growth remains profitable .
Nykaa Fashion posted a 25 percent year-on-year increase in GMV, reaching around ₹964 crore. The segment’s losses narrowed as well; EBITDA loss dropped from roughly 9.2 percent of net sales value to about 6.2 percent. The addition of new and differentiated labels such as Swarovski, Rare Rabbit, The Indian Garage Co., Victoria’s Secret, and Hopscotch is aimed at boosting full-price sell-through.
Traffic and customer numbers improved, with the platform recording over 165 million visits and building a customer base of 8.5 million. The goal remains to push toward break-even by improving curation, inventory turnover, and marketing return on investment .
Nykaa’s board has approved acquiring the remaining 40 percent stake in Nudge Wellness, making it a wholly owned subsidiary. This move allows Nykaa to expand into dietary supplements and nutricosmetics, extending its beauty offerings into wellness. Cross-selling between beauty and wellness products promises additional revenue opportunities, though success will depend on integration and market acceptance of these products .
The platform now serves over 45 million cumulative customers, with around 37 million categorized as beauty customers. Marketing continues to leverage high-visibility events such as the Cannes affiliations and seasonal sales like the Pink Summer Sale. This particular sale attracted 84 million visits and lifted omnichannel beauty GMV by 33 percent year-on-year, reinforcing brand awareness while also driving sales across online and offline channels .
Margin expansion in the quarter was driven by a blend of premiumization, operating efficiencies, and a shift toward owned brands and B2B distribution. Analysts responding to results appear optimistic, noting resilient growth in beauty, better discipline in fashion, and improved profitability signals.
At least one brokerage raised its target price following the results, reflecting confidence in the company’s trajectory. The broader objective is to sustain over 20 percent revenue growth while continuing to improve consolidated EBITDA margins in FY26, through fulfillment productivity, marketing efficiency, and a favorable mix shift .
Challenges remain. Quick-commerce competitors could put pressure on delivery pricing and margins. Discounts by rivals on premium beauty products could challenge Nykaa’s margin structure. The upcoming expansion of experiential stores brings execution risk, including maintaining productivity in newly opened locations.
In fashion, a weak macroeconomic environment or rising returns could slow progress toward profitability. Finally, changes in currency or import costs may affect pricing for international beauty brands in India.
Analysis of the quarter’s performance suggests several upcoming priorities. Further expansion of luxury and dermacosmetic products may continue to drive average order values and margins. The company is expected to roll out more flagship stores in key cities and enter tier-2 or tier-3 markets with experiential formats.
“Nykaa Now” is likely to extend its reach city by city, with careful attention to profit per order. Growth in owned brands is expected to continue, complemented by selective international launches like the one planned for Kay Beauty. Superstore’s B2B growth could further fortify Nykaa’s distribution reach. In fashion, improved curation and marketing efficiency are expected to reduce losses.
Taken together, these moves could help Nykaa deliver mid-20s growth alongside steady margin improvement throughout FY26. The strong performance in the latest quarter—where revenue rose roughly 22–23 percent and profit growth outpaced sales—sets a firm foundation for this next phase of expansion and profitability.