“Nykaa’s strong growth momentum continues with this quarter with GMV coming 26% YoY growth and GMV at INR 4,182 Cr.” That was the opening statement of Nykaa’s Executive Chairperson, MD & CEO of Falguni Nayar on the analyst call after the company’s Q1 FY26 financial results were out.

At a cursory glance, the company’s financial performance has improved on a year-on-year basis. The Mumbai-based BPC major’s net profit zoomed nearly 80% to INR 24.5 Cr from INR 13.6 Cr a year earlier.

Concerning the revenue, the company’s operating revenue increased by 23% to INR 2,155 Cr on a YoY basis. Even on a sequential basis, the company’s topline increased by 5%.

With the growing revenue, the company also managed to improve its EBITDA to INR 141 Cr.

Akin to the previous quarters, the company’s beauty segment continued to remain the core driving engine, contributing almost 92% of the company’s operating revenue.

Revenue from the beauty vertical surged over 25% YoY to INR 1,957 Cr while its profit grew 32% to INR 96Cr.

According to Anchit Nayar, CEO of Nykaa retail, one of the four beauty verticals, the B2B superstore is operating in the red, while the online marketplace, House of Nykaa, and retail business remain profitable.

The fashion business which is yet to achieve breakeven, saw its revenue increase 15% to INR 171 Cr, with loss narrowed by 11% YoY to INR 27 Cr.

Let’s take a look at the key factors that fueled Nykaa’s core growth engine – beauty vertical.

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