Nykaa reports 79% rise in Q1 net profit

Economic Times

2 days ago

ETtech Falguni Nayar, CEO, Nykaa FSN E-Commerce, the parent of online beauty and fashion retailer Nykaa, reported a 79% rise in fiscal first quarter consolidated net profit at Rs 24.47 crore, compared to Rs 13.64 crore a year earlier.Revenue from operations grew 23% to Rs 2,155 crore in the three months ended June from Rs 1,746 crore a year earlier.
'The growth is very deliberate. It's not coming easily because of the global conditions and Nykaa is doing a lot of optimisation strategies,' Falguni Nayar, executive chairperson, managing director and CEO at Nykaa, said on a post-earnings call. 'That said, we are not seeing any marketing cost per view or cost per impression going up.' For the June quarter, expenses increased 22% on-year to Rs 2,120.5 crore. Staff costs rose 17% to Rs 182 crore.Nykaa's beauty vertical, the biggest revenue contributor, recorded a 26% rise in gross merchandise value (GMV) at Rs 3,208 crore in the June quarter.'Coupled with the uncertain macro environment, the competition in the beauty and personal care segment has also increased,' said Anchit Nayar, CEO of Nykaa Beauty. 'Quick commerce, horizontal players, and specialist beauty players are focusing a lot on this category. Despite this, Nykaa continued to deliver market-beating growth and the BPC category saw a mid-20% growth in this category.'Nykaa's fashion vertical saw a 25% on-year GMV growth in Q1FY26, accelerating from a 15% increase a year earlier.The platform ended the quarter with over 45 million customers, 250 offline stores in 82 cities and 9,000 brands, of which 400 brands were added in Q1.
Quick commerce expansion
As quick commerce competition intensifies, Nykaa has scaled its rapid delivery segment Nykaa Now to seven cities including Mumbai, Delhi and Bengaluru. 'Nykaa Now is part of our broader strategy of improving speed and convenience while not compromising on the quality of our products and the experience we provide our customers,' said Anchit Nayar. 'Today we are present in seven cities and have over 50 rapid stores with a large assortment of beauty products which are available in about 30 minutes to two hours.'By the end of June quarter, Nykaa Now has delivered over 1.3 million orders. Overall, Nykaa noted an annualised gross merchandise value of $2 billion across all platforms in Q1.
Business acquisition
Nykaa is set to acquire the remaining 40% stake in nutrition brand Nudge Wellness. In 2022, Nykaa had acquired a 60% stake in Nudge Wellness for Rs 3.6 crore. It will buy the remaining 40% stake for Rs 15 lakh, getting full ownership of the company. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. As 50% US tariff looms, 6 key steps that can safeguard Indian economy
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