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Indian fashion-to-beauty retailer Nykaa reported a near four-fold jump in quarterly profit on Thursday, supported by strong demand for skincare and makeup products and improving momentum in its fashion business.
The company posted a profit of 783.8 million rupees ($8.2 million) for the quarter ended March 31, compared with 202.8 million rupees a year earlier.
Nykaa said its consolidated gross merchandise value growth for Q4 FY2026 is expected to be in the late twenties, while consolidated net sales value growth is projected to be in the early thirties.
Consolidated net revenue growth is also expected to remain in the late twenties, marking the company’s highest growth rate in the last 12 quarters.
The company attributed the strong quarterly performance to accelerated growth in its fashion vertical and sustained momentum in its beauty segment.
Beauty business maintains strong momentum
Nykaa’s beauty vertical is expected to deliver GMV, NSV, and net revenue growth in the late twenties during the quarter.
The company said NSV growth slightly outpaced GMV and net revenue growth.
According to the company, GMV-to-NSV conversion improved meaningfully due to funnel improvements across businesses.
Nykaa added that its omnichannel performance remained strong during the quarter, while its in-house brand portfolio, House of Nykaa, continued to scale and contribute meaningfully to overall business performance.
The company also significantly expanded its retail presence during the quarter.
Nykaa opened 26 new stores and integrated 11 Kiehl’s stores in Q4 FY2026, marking its highest quarterly store addition to date.
Following these additions, Nykaa’s total store count stood at 313 as of March 31, 2026.
Fashion vertical records sharp acceleration
Nykaa said its fashion vertical showed a steady growth revival since the beginning of FY2026, with momentum strengthening further during the fourth quarter.
The company expects fashion GMV growth in the late twenties, while NSV growth is projected in the early forties.
Nykaa said the stronger performance was driven by improving momentum in its platform business, funnel improvements, and robust customer acquisition trends.
The company also highlighted gains from richer brand assortment offerings, early traction from its partnership with Nike, and positive outcomes from the Pink Love Sale campaign.
Higher marketing income also contributed to growth during the quarter.
As a result, the fashion vertical’s net revenue growth improved to the late thirties, reflecting a sharp acceleration from previous quarters.
Full-year growth expected to improve
Nykaa said its consolidated NSV growth for the full FY2026 is expected to accelerate to the late twenties, compared with mid-twenties growth recorded over the last two years.
The company added that FY2026 net revenue growth is expected to improve to the upper end of the mid-twenties range, reflecting healthy performance across all business verticals.
Despite ongoing geopolitical tensions in West Asia, Nykaa said there was no material impact on business during the quarter.
The company noted that its Middle East exposure currently remains below 1% of overall revenue, as operations in the region are still at an early stage.
Company expands global and private label presence
Founded in 2012 by Falguni Nayar, Nykaa has expanded beyond beauty into fashion and B2B operations through platforms including Nykaa Fashion, Nykaa Man, and Nykaa Superstore.
The company has also expanded into the Middle East through its omnichannel beauty platform ‘Nysaa’.
Nykaa said it served 52 million customers as of December 31, 2025, through its digital platforms and offline beauty destinations.
Its portfolio of owned brands includes Nykaa Cosmetics, Dot & Key, Kay Beauty, Nykaa Wanderlust, Earth Rhythm, and several fashion labels, including Nykd by Nykaa, KICA, RSVP, and Gajra Gang.
The company added that international brands such as CHANEL, H&M, and Foot Locker continue to partner with Nykaa to expand their presence in the Indian market.
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