Nykaa pushes quick commerce expansion as Q2 profit more than doubles

Bengaluru: Nykaa is accelerating its quick-commerce expansion, targeting a presence in more than 25 cities by the end of fiscal year 2027 (FY27), as the beauty retailer looks to capture growing demand for faster delivery while widening its customer base and consumption.

Nykaa Now, the quick-commerce service of parent FSN E-Commerce Ltd, was operational in 15 cities in the September quarter, up from three in the first quarter of FY26. It offers delivery within 30-60 minutes, Anchit Nayar, chief executive of Nykaa’s beauty business, told analysts on Wednesday.

“Nykaa Now is one of our newest initiatives in beauty and is scaling rapidly. The depth of SKUs we offer is more than double of any quick commerce player out there,” Nayar said. “We really believe this will help us bring valuable incremental demand to the platform both in terms of repeat usage and overall consumption value.”

The expansion comes as Nykaa reported a 207% year-on-year increase in consolidated net profit to ₹101 crore for the September quarter. Operating revenue rose 28% to ₹3,006 crore.

Beauty remained the mainstay of the business, with net sales value (NSV) rising 28% to ₹2,536 crore and earnings before interest, taxes, depreciation and amortization (Ebitda) increasing 50% to ₹267 crore. NSV refers to the value of sales after adjusting for discounts, returns and other deductions.

Growth was driven by new customer acquisition, repeat engagement and stronger retail performance. Nykaa expanded its physical network to 338 beauty stores across 111 cities, adding 14 during the quarter. Like-for-like sales growth at existing stores was in the early twenties, which Nayar described as the company’s “strongest performance in six quarters”.

Monthly average unique visitors to the beauty platform increased 30% year-on-year to 54.1 million. Average orders transacted per customer rose 26% to 22.1 million, while average order value grew 5% to ₹2,149. Nayar attributed the increase to customer acquisition, premiumization and engagement from repeat customers.

Nykaa is also expanding its portfolio through acquisitions and exclusive brand partnerships. Its board has approved the acquisition of an 82% stake in Simply Nam Beauty for a consideration of up to ₹33 crore.

Founded by celebrity makeup artist Namrata Soni and venture studio Bozzil Group, Simply Nam is positioned as a premium, professional-grade makeup brand with formulations developed for Indian skin tones. Its revenue has grown five-fold over four years, reaching ₹16.99 crore in FY26, compared with ₹9.61 crore in FY25 and ₹3.7 crore in FY24, filings with the stock exchanges showed.

Soni will retain an 18% stake and join the business as co-founder and chief product officer. The transaction is expected to close in the third quarter of FY27, subject to closing conditions, the company said.

Also Read | Why Nykaa Fashion wants a premium fit

The deal adds to Nykaa’s house-of-brands strategy, which focuses on building differentiated brands across beauty and personal care. The company added more than 330 beauty brands over the past year and is also expanding its portfolio through exclusive international launches.

Its partnership with L'Oréal's Bold venture platform is aimed at investing in the next generation of Indian beauty and personal care businesses.

Fashion, meanwhile, grew faster than beauty during the quarter, albeit on a smaller base, while making further progress towards profitability.

Gross merchandise value (GMV) rose 42% year-on-year to ₹1,674 crore, while NSV increased 47% to ₹509 crore. Revenue from operations grew 43% to ₹287 crore.

The vertical reported Ebitda of about ₹1 crore, against a loss of ₹12 crore in the year-ago quarter. Its Ebitda margin improved to 0.2% from a negative 3.5%. Contribution profit increased to ₹57 crore from ₹33 crore, while contribution margin expanded to 11.3% from 9.5%.

The improvement came despite higher fulfilment and marketing expenses in absolute terms. Fulfilment costs increased to ₹52 crore from ₹39 crore, while marketing and selling expenses rose to ₹116 crore from ₹93 crore. However, marketing and selling expenses as a share of NSV declined to 22.7% from 26.9%, indicating improved spending efficiency, according to Abhijeet Dabas, chief executive of Nykaa Fashion.

“Assortment in fashion is growing wide across categories which is helping lift AOVs,” Falguni Nayar, founder and CEO of FSN E-Commerce Ltd, said during the analysts’ call.

Nykaa’s house-of-brands portfolio, which includes Dot & Key, Kay Beauty and Nykaa Cosmetics, recorded NSV of ₹535 crore in the September quarter, up 39% year-on-year.

FSN E-Commerce shares closed 0.45% higher at ₹355.50 apiece on the National Stock Exchange on Wednesday.

Sowmya is a senior correspondent covering retail, FMCG, corporate strategy, and consumer technology, with a focus on how companies navigate demand, competition, and shifting consumption patterns across both urban and emerging markets. She reports on business decisions through both breaking news and long-form stories.<br><br>An alumna of the Asian College of Journalism, she has reported on a range of consumer-facing industries, including e-commerce, healthcare, and startups. Her work focuses on understanding how companies grow, compete, and adapt in a changing economic environment, as well as how broader trends translate into everyday consumption and business outcomes.<br><br>She is particularly interested in how business decisions show up in everyday consumer experiences, and often looks at trends through the lens of how they play out on the ground.<br><br>Prior to her current role, Sowmya was part of the editorial team at YourStory, where she covered startups and entrepreneurship. She has also worked on longform stories at The Morning Context and reported on technology at The Hindu in Chennai, gaining experience across different formats and newsrooms.<br><br>Her reporting aims to be accurate and accessible, with an emphasis on context and careful sourcing. She is particularly interested in stories that sit at the intersection of business strategy and consumer behaviour.<br><br>Based in Bengaluru and always curious about evolving consumption trends, she is often exploring new coffee and kombucha spots, both as a personal interest and a way to observe how consumer preferences are taking shape on the ground.

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