FSN E-Commerce Ventures Limited (Nykaa) announced its financial results for the first quarter of FY27, reporting a 29% year-on-year growth in net revenue, reaching INR 2,782 crore. The company also saw a significant jump in profitability, with EBITDA growing 68% to INR 236 crore and PAT rising 226% to INR 80 crore. Both the beauty and fashion verticals demonstrated accelerated growth and improved profitability.
Nykaa Reports Strong Q1 FY27 Performance
FSN E-Commerce Ventures Limited (Nykaa) has announced robust financial results for the first quarter of the financial year 2027 (Q1 FY27), ended June 30, 2026. The company reported a 29% year-on-year growth in net revenue, reaching INR 2,782 crore. This growth reflects a healthy momentum across both its beauty and fashion business verticals.
Profitability and EBITDA Surge
The company’s profitability saw a significant acceleration. EBITDA for the quarter grew by a substantial 68% year-on-year to INR 236 crore, with the EBITDA margin expanding to 8.5% compared to 6.5% in the same quarter last year. Profit After Tax (PAT) also demonstrated strong growth, rising 226% year-on-year to INR 80 crore, resulting in a PAT margin of 2.9%.
Vertical Performance Highlights
Both the Beauty and Fashion segments contributed to the strong performance. The Beauty vertical saw Net Sales Value (NSV) growth of 29% year-on-year, reaching INR 2,371 crore. The Fashion vertical experienced a standout quarter with an NSV growth of 54% year-on-year, amounting to INR 451 crore. This acceleration in growth for both verticals was supported by improved profitability, driven by operating leverage and scale efficiencies.
Key Business Initiatives and Growth Drivers
The company highlighted several key initiatives contributing to its growth. In the Beauty vertical, penetration and premiumization strategies are driving growth. The platform saw an increase in visits and a growth in unique transacting customers. The launch of exclusive brands like Rare Beauty and other high-profile brands are enhancing the product assortment. The retail presence expanded with 11 new stores opened this quarter, bringing the total to 324 across over 100 cities.
The House of Nykaa business reported an annualized GMV of INR 3,760 crore with 39% year-on-year growth. The acquisition of Aminu, a premium dermocosmetic skin care brand, was also announced, further strengthening the skincare portfolio.
In the Fashion vertical, the business reported a 53% growth on GMV and 54% growth on NSV year-on-year. The Nike partnership, including operating Nike’s D2C platforms, is showing early traction. AI initiatives, such as the Virtual Closet feature, are enhancing the customer experience and driving conversions.
Financial Health and Capital Productivity
The company emphasized its focus on efficient capital utilization and long-term value creation. Fixed asset turnover improved to 10.7x, and working capital days reduced to under 30 days. Return on Capital Employed (ROCE) sharply increased to 26.8%.
Looking ahead, Nykaa remains confident in its ability to create sustainable long-term value through its differentiated omnichannel platform, brand ecosystem, and operating leverage.
Source: BSE
