FSN E-Commerce Ventures (NYKAA) Q2 25/26 earnings summary

Executive summary

• Achieved 30% YoY GMV growth to INR 4,744 crore and 25% net revenue growth to INR 2,346 crore, marking the highest in six quarters and consistent mid-20s growth for 12 quarters.

• Gross profit rose 28% YoY to INR 1,054 crore (44.9% margin), with EBITDA up 53% YoY to INR 159 crore (6.8% margin), and PAT up 154% YoY to INR 33 crore (1.4% margin), all record highs since IPO.

• Customer base reached 49 million, up 32% YoY, with 19 new stores opened (total 265 in 90 cities), and 53 rapid stores now operational for hyperlocal delivery.

• House of Nykaa brands crossed INR 2,900 crore annualized GMV, growing 54% YoY, with beauty brands contributing 75% and strong international expansion for Kay Beauty.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025.

Financial highlights

• Net revenue for Q2 FY26: INR 2,346 crore, up 25% YoY; gross profit: INR 1,054 crore (44.9% of revenue), up 28% YoY; EBITDA: INR 159 crore (6.8% margin), up 53% YoY; PAT: INR 33 crore (1.4% margin), up 154% YoY.

• Gross margin improved by 111 bps YoY; highest in 12 quarters.

• H1 FY26 revenue from operations grew 24% YoY to ₹4,501 crore; gross profit up 28% YoY to ₹2,015 crore.

• CapEx for H1 FY26: INR 58 crore, mainly for store and tech investments; capex as % of revenue at 1%.

• Cash and cash equivalents as of September 30, 2025, were ₹112.57 crore.

Outlook and guidance

• Management expects continued strong growth in both beauty and fashion, with further margin improvements anticipated as scale and operating leverage increase.

• No major long-term impact expected from recent GST changes; minor near-term effects noted.

• Focus on omnichannel expansion, premiumization, and technology investments to sustain growth.

• Q3 expected to be strong, especially for beauty, due to Pink Friday Sale and Nykaa Land events.