Nykaa (FSN E-Commerce Ventures Limited) reported a robust Q4 FY26, capping a strong financial year. The company achieved INR 10,000 crore in net revenue for the full year, a first-time milestone, driven by 28% year-on-year growth in GMV and 26% in net revenue. Key segments like Beauty and Fashion demonstrated significant performance improvements, with impressive growth and expanding EBITDA margins. The company highlighted strategic initiatives, including brand expansion and enhanced customer engagement, positioning it for continued success.
Nykaa Reports Strong FY26 Performance Driven by Key Verticals
FSN E-Commerce Ventures Limited, operating as Nykaa, announced a highly successful Q4 and full fiscal year 2026, marked by significant revenue growth and improved profitability across its business verticals. The company’s overall net revenue for the fiscal year crossed the landmark INR 10,000 crore mark for the first time, reflecting a robust expansion.
Financial Highlights for Q4 and Full Year FY26
- Full Year FY26 GMV Growth: 28% year-on-year.
- Full Year FY26 Net Revenue Growth: 26% year-on-year, reaching INR 10,000 crores.
- Full Year FY26 Gross Profit: INR 4,516 crores, a 30% increase year-on-year, with a gross margin of 45.1%.
- Full Year FY26 EBITDA: INR 752 crores, a 59% growth year-on-year, representing 7.5% of net revenue and marking the highest EBITDA margin ever.
- Full Year FY26 PAT: INR 204 crores, an 183% growth year-on-year, representing 2% of net revenue and one of the highest PAT margins on a full-year basis.
- Q4 FY26 Net Revenue Growth: 28% year-on-year, reaching INR 2,648 crores.
- Q4 FY26 Gross Profit: INR 1,203 crores, a 32% increase year-on-year, with a gross margin of 45.4%.
- Q4 FY26 EBITDA: INR 223 crores, a 67% growth year-on-year, representing 8.4% of net revenue and one of the highest EBITDA margins recorded.
- Q4 FY26 PAT: INR 79 crores, a 313% growth year-on-year, representing 3% PAT with one of the highest PAT margins ever.
Beauty Vertical Performance
The Beauty vertical demonstrated strong momentum, closing FY26 with approximately INR 15,000 crores of GMV, a 27% year-on-year growth. Net Sales Value (NSV) reached around INR 8,500 crores with an EBITDA margin of 9.6% for the full year. Q4 FY26 saw a 27% growth on GMV and 29% growth on NSV, with an EBITDA margin of 10.3%, showing acceleration in both growth and profitability.
Key initiatives in the Beauty segment include a focus on marketing efficiencies, an increase in customer visits by 28% year-on-year to 1.8 billion, and a growth in annual unique transacting customers by almost double since FY23. The company also highlighted its role as a key partner for global beauty brands, including exclusive launches and strategic partnerships with brands like Chanel, La Prairie, and SK-II. Trends like K-Beauty and dermacosmetics are showing promising growth, with Korean brands growing 58% year-on-year and dermacosmetics up over 40% in GMV.
The retail footprint has expanded to approximately 313 stores across nearly 100 cities, with a doubling of the retail footprint over the past 3 years. The company is also investing in innovative store formats like Nykaa Luxe and House of Nykaa, and has taken over the Kiehl’s India business.
Fashion Vertical Performance
Nykaa Fashion experienced a revival in growth, achieving 30% GMV growth for FY26, reaching nearly INR 5,000 crores. NSV grew by close to 30% to INR 1,447 crores. The business moved from a negative EBITDA of -8.3% in FY25 to -2.6% in FY26, a significant improvement of 570 basis points. Q4 FY26 reported a positive EBITDA of 0.3%.
Growth drivers for Fashion include a focus on new customer acquisition (up 41% year-on-year), aggressive brand onboarding (over 1,200 brands added), and a diversified assortment including men’s, kids, and home accessories. Marquee brands like H&M and Nike have been successfully integrated, with H&M becoming the number one brand on Nykaa Fashion since its launch. Nike has also entered into a strategic partnership for end-to-end digital commerce management.
Marketing efforts are increasingly leaning into the creator economy, with amplified activity with creators of various sizes to integrate content and commerce.
Superstore Business
The Superstore business has scaled to approximately INR 1,200 crores in GMV within four years, reaching about 0.5 million retailers across 1,300 cities. The business has attracted over 220 leading brands and has seen a shift towards retailers placing orders autonomously. This growth has led to significant improvements in unit economics, with EBITDA margins improving by over 500 basis points.
House of Nykaa Brands
The House of Nykaa unit delivered a strong ~50% year-on-year increase in GMV, reaching INR 3,176 crores in FY26. The Beauty segment within House of Nykaa saw a 65% year-on-year growth in GMV, reaching INR 2,788 crores. Brands like Dot & Key have seen substantial growth, reaching INR 1,790 crores in GMV. Kay Beauty grew 3x in 3 years to about INR 380 crores of GMV. Nykaa Cosmetics is the second-largest brand at INR 400 crores of GMV. The company is focusing on building new engines for future growth with brands like Wanderlust and Earth Rhythm.
Strategic Outlook and Capital Allocation
Nykaa remains focused on building a strong portfolio of brands and enhancing its omnichannel model. The company is investing in capability building for long-term value creation. Capital allocation continues to be efficient, with a focus on beauty retail store expansion, fulfillment capabilities, and technology. The fixed asset turnover has improved to 9.9x, and working capital days have reduced to 28 days, leading to a ROCE improvement to 21.2%.
The company is cautiously optimistic about the next financial year, acknowledging global economic concerns such as inflation and currency depreciation but also seeing opportunities driven by AI advancements. The focus remains on driving growth through customer acquisition and retention, alongside improving average order value and annual consumption value.
Source: BSE
