Nykaa Q2 profit triples to Rs 101 crore on 28% sales growth
Nykaa's September-quarter profit tripled to Rs 101 crore as revenue rose 28% to Rs 3,006 crore, with beauty at 90% of sales. The numbers behind it.
Nykaa, the beauty and fashion retailer that grew out of an online start-up, reported consolidated net profit of Rs 101 crore for the July to September 2026 quarter, up from Rs 33 crore a year earlier, Entrackr reported on 4 November 2026. Revenue from operations rose 28% to Rs 3,006 crore. The quarter's numbers come from that one report; the comparison with the June quarter draws on an earlier Kotak Neo article, and the profit ratios here are calculated from the reported figures.
What the quarter looked like
Revenue from operations was Rs 3,006 crore, against Rs 2,346 crore a year before. Net profit was Rs 101 crore, roughly three times the Rs 33 crore of Q2 FY26. For the first half of FY27, revenue was Rs 5,788 crore, up 28.6% from Rs 4,501 crore, and net profit was Rs 181 crore, up 214.8% from Rs 57.5 crore.
Total expenses were Rs 2,867 crore, up 25%, so costs grew slower than sales and the gap widened into profit. The biggest item is the cost of materials consumed, which for a retailer means the goods it buys to sell: Rs 1,624 crore, up 25.7%, or 56.64% of all expenses. Other expenses, which cover marketing, technology and overheads, were Rs 899 crore, up 26%. Employee benefits were Rs 220 crore, up 20%, depreciation Rs 93 crore, up 18%, and finance costs Rs 30.52 crore, down 3%.
A calculation from these numbers: net profit was about 3.4% of revenue this quarter, against about 1.4% a year ago. That is a margin, the share of each rupee of sales kept as profit. It remains thin, which is normal for retailers who buy and sell physical goods, but it has more than doubled.
What drives the money: beauty
Beauty is the engine. Entrackr's segment split for the quarter is Rs 2,700 crore from beauty, 90% of operating revenue, Rs 287 crore from fashion, 10%, and Rs 19 crore from other segments. The report gives no figure for last year's segments, so growth by segment cannot be worked out from it.
For a rough sense of direction, an earlier Kotak Neo article on the June quarter, announced on 4 August 2026, gave beauty revenue of Rs 2,516 crore and fashion of Rs 252 crore. Comparing the two, beauty grew about 7% and fashion about 14% in one quarter. Those are calculations across two different reports and are approximate, since the segment definitions may differ slightly.
The June quarter as a yardstick
The Kotak Neo article reports that in the June quarter Nykaa earned net profit of Rs 79.7 crore on revenue of Rs 2,782 crore, up 29.1%. It also reported earnings before interest, tax, depreciation and amortisation, called EBITDA, of Rs 236 crore, a margin of 8.45% that the article called the highest in 12 quarters. EBITDA strips out financing and accounting charges to show how profitable the operations are before those items. The Entrackr report on Q2 does not give EBITDA, so the margin cannot be compared this quarter.
Compared with June, revenue rose about 8% and net profit about 27%, again calculations from two reports. The fact that profit grew faster than revenue in a single quarter is consistent with the cost trend, though the sources do not say why.
Kotak Neo also noted that in the June quarter the board approved the purchase of a 51% stake in Aminu Wellness Private Limited for up to Rs 32 crore, and that Chairperson, Founder and CEO Falguni Nayar spoke of continued acceleration in growth momentum. Those are company statements.
Why the profit grew faster than sales
Nykaa itself has not been quoted explaining the Q2 profit, and the report offers no management commentary, so the reasons below are readings of the numbers rather than facts. First, costs rose 25% while revenue rose 28%. Second, finance costs fell 3% even as the business grew, which means interest on borrowings was not weighing on profit. Third, employee costs rose 20%, slower than revenue.
What cannot be read from the report: gross merchandise value, which is the total value of goods sold on the platform before returns and discounts, and the EBITDA margin are not given. Nor does the report say how much of the profit came from tax or one-off items. Readers should therefore treat any claim that the improvement is "operating leverage", meaning fixed costs spread over a bigger sales base, as a hypothesis.
What is confirmed, what is not, and what is unknown
Confirmed by the report, which cites exchange data: the revenue, profit and expense lines, the segment split and the half-year totals. Not confirmed: any explanation from management for why profit grew faster than sales, since the report carries no commentary. Unknown from the sources read: gross merchandise value for the quarter, EBITDA and its margin, the profit or loss of the fashion business on its own, tax and any one-off items, and whether the quarter's festive-season demand was pulled forward from the next one.
It also helps to keep two different kinds of profit measure apart. Net profit is what is left after every cost, including interest, depreciation and tax. EBITDA leaves out the last three and so is always higher. A company can show strong EBITDA and thin net profit, and the reverse can happen if there are one-off gains. Because the Q2 report gives net profit only, comparisons with the June quarter's 8.45% EBITDA margin are not like for like, and the 3.4% net margin calculated here should not be set against that figure.
What it means for shoppers, founders and investors
For shoppers, a company with a profitable beauty business can keep investing in stores, brands and delivery, but the report does not say how. The 90% beauty share shows how much the retailer depends on one category. Fashion, at 10%, is smaller and still growing quickly from the June quarter.
For founders of consumer brands, the figures show that large retail platforms can both grow and make money, although the profit margin remains in low single digits. That means a platform has less room to give brands better terms than a high-margin business would. For investors the market value is the question: Entrackr's report puts Nykaa's market capitalisation at Rs 1,01,410 crore at a closing share price of Rs 355.10, as of the report. A value that high on a 3.4% net margin means the market is pricing in much more growth, which is a comment on valuation and not a recommendation.
The simulator below lets you test what the margin and growth mean for annual profit. The default revenue is the reported quarter multiplied by four, a simple annualisation and not a forecast.
What to watch next
The investor presentation and filing should supply gross merchandise value, EBITDA and the fashion segment's profitability, which the Entrackr report omits. Watch the December quarter, which includes the festive and wedding season, for whether revenue growth stays near 28%, and whether the 51% Aminu Wellness purchase closes. The net margin is the figure to track: a move above 3.4% would suggest the cost gains are lasting.
Key takeaways
- Nykaa's Q2 FY27 net profit was Rs 101 crore, up from Rs 33 crore, on revenue of Rs 3,006 crore, up 28%.
- Beauty brought in Rs 2,700 crore, or 90% of operating revenue, and fashion Rs 287 crore, or 10%.
- Expenses grew 25%, slower than revenue, lifting the net margin to about 3.4% from about 1.4%.
- Gross merchandise value and EBITDA were not in the report, so the quality of the profit cannot be fully judged.
- The quarter's figures rest on one report and should be checked against the company's exchange filing.
Sources
- [Entrackr: Nykaa's profit jumps 3X to Rs 101 Cr in Q2 FY27; revenue grows 28%](https://entrackr.com/fintrackr/nykaas-profit-jumps-3x-to-rs-101-cr-in-q2-fy27-revenue-grows-28-12783253)
- [Kotak Neo: Nykaa Q1 2026-27 results, net profit more than triples to Rs 80 crore, revenue up 29%](https://www.kotakneo.com/news/stocks/nykaa-q1-2026-27-results-net-profit-more-than-triples-to-rs-80-crore-revenue-up-29/)
Tags: Nykaa E-commerce Quarterly results Startups Beauty