Nykaa has entered a new phase in its growth story. The beauty and fashion retailer closed FY26 with annual revenue crossing Rs 10,000 crore for the first time, while quarterly profit rose more than four times compared to the same period last year.
The company’s latest earnings reflect a broader shift taking place in India’s beauty and lifestyle market, where premium shopping, online discovery, and offline experience are increasingly blending into one ecosystem.
For a company that began as an online beauty retailer 14 years ago, the latest numbers show how aggressively it has expanded beyond its original playbook.
Strongest Quarterly Growth in Three Years
Nykaa reported revenue from operations of Rs 2,648 crore in the fourth quarter of FY26, up 28% year-on-year. The company said this was its fastest quarterly growth in the last 12 quarters.
Gross merchandise value, a key measure of total sales across platforms, also climbed 28% to Rs 5,241 crore during the quarter.
What stood out most, however, was profitability.
Net profit for Q4 rose to Rs 79 crore from Rs 19 crore a year earlier. EBITDA reached Rs 223 crore, while EBITDA margin expanded to 8.4%, the highest in the company’s history.
The company’s gross profit for the quarter stood at Rs 1,203 crore.
Annual Revenue of Nykaa Crosses Rs 10,000 Crore
On a full-year basis, Nykaa’s revenue from operations rose 26% to Rs 10,022 crore, helping the company cross the Rs 10,000 crore milestone for the first time.
Annual net profit increased to Rs 204 crore from Rs 72 crore in FY25.
Gross profit for the year grew 30% to Rs 4,516 crore, while EBITDA jumped 59% to Rs 752 crore.
The company also highlighted that it has maintained “mid-20s growth” for 14 consecutive quarters, a sign that demand has remained resilient despite rising competition in India’s beauty and fashion commerce market.
Beauty Business Continues to Drive Growth
Beauty remained Nykaa’s biggest business engine.
The segment recorded GMV of Rs 14,954 crore in FY26, up 27% year-on-year. Revenue from operations in the beauty division stood at Rs 9,139 crore, while EBITDA reached Rs 819 crore.
Over the past year, Nykaa expanded its portfolio with more than 200 global beauty brands, including Chanel Beauty, Armani Beauty, Kylie Cosmetics, SK-II and Paula’s Choice.
The company also continued investing heavily in physical retail.
Nykaa added 76 stores during FY26, taking its total network to 313 stores across 99 Indian cities. The retailer said it focused on creating more experience-led retail formats, including fragrance-focused stores and interactive engagement spaces.
That strategy reflects a wider trend in India’s premium beauty market, where consumers increasingly want to test products physically before purchasing online.
Fashion Unit Moves Closer to Stability
Nykaa Fashion also showed signs of operational improvement.
The fashion business reported GMV growth of 30% year-on-year to Rs 4,954 crore. Revenue from operations in the segment reached Rs 832 crore.
Most notably, the fashion vertical turned EBITDA-positive at Rs 1 crore, compared to an EBITDA loss of Rs 29 crore in the previous financial year.
The company said categories such as menswear, kidswear, and home products saw strong traction. Menswear grew 60%, while kidswear and home categories expanded 50% and 40% respectively.
For Nykaa, profitability in fashion carries significance because the category has historically been more difficult for online platforms to scale efficiently due to high returns, logistics costs, and intense discount-led competition.
AI Becomes a Bigger Part of the Business
Nykaa is also increasingly positioning artificial intelligence as part of its future strategy.
The company highlighted the use of AI-powered tools across beauty and fashion operations. These include its AI Skin Analyzer, which provides personalised skincare recommendations, and “Nykaa Muse,” a virtual beauty assistant platform.
As competition intensifies across ecommerce and quick commerce platforms, personalisation is becoming central to customer retention, especially in beauty where consumer preferences are highly individualised.
Balance Sheet Strengthens
The company’s financial position improved during the year.
Total assets rose to Rs 4,611.4 crore as of March 31, 2026. Cash and bank balances, including fixed deposits, increased to Rs 418.3 crore.
Borrowings declined to Rs 747.2 crore, while net debt improved sharply to Rs 329 crore from Rs 623 crore a year earlier.
Nykaa also generated stronger operational cash flow during FY26. Cash flow from operations rose to Rs 644.3 crore, compared to Rs 197 crore in the previous year.
House of Nykaa and Superstore Continue Expanding
Nykaa’s owned brands business, House of Nykaa, reached an annualised GMV run-rate of Rs 3,176 crore.
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 scaling rapidly. The platform now has 4.93 lakh registered retailers and serves 3.8 lakh transacting retailers across more than 1,000 cities.
Nykaa said the platform’s GMV has nearly quadrupled over the past three years.
The company also confirmed it completed the acquisition of clean beauty brand Earth Rhythm after initially acquiring a minority stake in FY23.
Falguni Nayar Calls It a Defining Moment
Commenting on the results, founder and CEO Falguni Nayar described the milestone as a defining moment in Nykaa’s journey.
She said crossing the $1 billion revenue mark while maintaining profitability and capital efficiency reflected the trust consumers place in the platform.
Nayar added that Nykaa has evolved into a multi-business platform over the last three years, with Beauty and Fashion doubling their GMV while newer verticals such as Superstore and House of Nykaa expanded fourfold during the same period.
She also pointed to wellness and AI-driven commerce as long-term growth opportunities for the company.
Nykaa’s latest performance comes at a time when India’s beauty market is undergoing rapid transformation.
Global luxury beauty brands are expanding aggressively in India, premium consumers are spending more on skincare and fragrance, and ecommerce players are racing to build deeper omnichannel networks.
At the same time, profitability has become a key benchmark for internet-first companies after years of investor focus on growth at any cost.
Nykaa’s FY26 numbers suggest the company is attempting to balance both.
The challenge ahead will be sustaining growth while navigating rising competition from horizontal ecommerce platforms, quick commerce players, direct-to-consumer brands, and global beauty retailers entering India’s fast-growing premium market.
For now, the company appears to have strengthened its position at the centre of India’s beauty and lifestyle economy.
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