Beauty and personal care (BPC) major Nykaa’s consolidated net profit zoomed 166% to INR 33 Cr in Q2 FY26 from INR 13 Cr in the year-ago quarter. Sequentially, profit grew 35% from INR 24.5 Cr in the preceding June quarter.

Operating revenue surged 25% YoY and 9% QoQ to INR 2,346 Cr during the quarter under review. Including other income of INR 8 Cr, total income for the quarter stood at INR 2,354 Cr.

Meanwhile, expenses rose 24% YoY to INR 2,297.6 Cr. The company’s tax outgo also jumped nearly 3X YoY INR 22.4 Cr.

EBITDA grew 53% YoY to INR 159 Cr, while EBITDA margin expanded 130 basis point (bps) to 6.8%. Nykaa said that it recorded its highest EBITDA margin expansion during the quarter since its IPO in November 2021.

Notably, the company recorded an exceptional loss of INR 1 Cr during the quarter under.
The company incurred an INR 10.4 Cr loss pertaining to misappropriation of inventory at one of the warehouses of its subsidiary. “The subsidiary has taken necessary steps to recoup the loss including registering the claim with the insurance company,” Nykaa said.

However, it also received INR 9.3 representing receipt of an arbitration award pertaining to a legal dispute the company initiated over breach of employment contract obligations of confidentiality and non-solicitation of one of its subsidiaries. The award was received on August 5.

On the business front, Nykaa’s consolidated gross merchandise value (GMV) grew 30% YoY to INR 4,744 Cr. Nykaa categorises its businesses into three verticals — beauty, fashion, and others. The ‘others’ segment includes its general trade, modern trade (including Nykaa Superstore) and other online marketplaces.

All three verticals fired on all cylinders in the quarter.

“… even our customer acquisition has accelerated now with 49 Mn cumulative customer base across beauty & fashion. Strategically, this has been a pivotal quarter, one where our long-term growth pillars have translated into near-term acceleration, underscoring the strength and scalability of the Nykaa ecosystem,” CEO and MD Falguni Nayar said.

Important to note that Nykaa has also proposed extending Nayar’s tenure as MD and CEO for five years. The reappointment is subject to shareholder approval.

(The story will be updated soon)

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