Nykaa Q1 FY27 revenue rises 29%

Nykaa began FY27 with its fastest growth in three years, reporting a 29 per cent year-on-year increase in revenue from operations to Rs 2,782 crore and a 226 per cent jump in net profit to Rs 80 crore for the quarter ended June 30. The beauty and lifestyle retailer said the quarter was driven by momentum across its beauty portfolio, premium brand launches, AI-led shopping experiences and omnichannel expansion.

For marketers, the quarter underscored Nykaa's continued focus on premiumisation, exclusive global partnerships, technology-led consumer engagement and offline expansion, while strengthening its portfolio through the acquisition of premium skincare brand Aminu.

Speaking on the results, Falguni Nayar, Executive Chairperson, Founder and CEO of Nykaa, said, "This quarter marked continued acceleration in our growth momentum and EBITDA margins, both reaching their highest levels in the last 12 quarters. Our platform featured exciting new brand launches like Rare Beauty, one of the world's largest celebrity beauty brands, already among the top five premium brands at Nykaa, SK-II, a Japanese high efficacy brand, and Judydoll, among our first Chinese beauty brands which is witnessing strong early traction among consumers. This also marks our first full quarter of operating nike.in in India, which has led to meaningful increase to our already growing fashion business."

She added that the company's AI-led initiatives are beginning to improve customer experiences, with Virtual Closet delivering two-times higher conversion rates while AskNykaa, its conversational search platform, is emerging as a trusted beauty advisor for shoppers.

Nykaa's beauty business remained the company's largest growth engine, with gross merchandise value reaching Rs 4,105 crore during the quarter. The company expanded its premium portfolio through exclusive launches including Rare Beauty, SK-II, Judydoll, K18 and Dr. Reju-All, further strengthening its position as a preferred launch partner for international beauty brands entering India.

The retailer also accelerated its quick commerce strategy. Nykaa Now has expanded to 13 cities and is expected to reach more than 25 cities by the end of FY27, enabling deliveries within 30 to 60 minutes across more than 1,000 beauty and personal care brands.

Offline retail continued to be a key part of the company's omnichannel strategy. During the quarter, Nykaa expanded its network to 324 beauty stores across 105 cities and opened its largest Nykaa Luxe outlet at Ambience Mall, Vasant Kunj, featuring more than 80 premium brands alongside experiential beauty services.

Its owned brands business, House of Nykaa, continued to scale with an annualised GMV run rate of approximately Rs 3,758 crore, supported by strong innovation across Dot & Key, Kay Beauty and Nykaa Cosmetics. New product launches contributed between 20 per cent and 40 per cent of revenues for the company's top three beauty brands during the quarter.

Nykaa's B2B platform, Superstore by Nykaa, also expanded its reach, reporting GMV of Rs 336 crore while growing its retailer network to more than 523,000 registered retailers across over 1,200 cities. The platform added brands including Sebamed, Minimalist, Deconstruct and Yoga Bar during the quarter.

The fashion business also reported strong momentum, with GMV rising 53 per cent year-on-year to Rs 1,471 crore. The company attributed growth to customer acquisition, the addition of more than 130 brands and partnerships with Nike and H&M. Nykaa said Nike crossed 1.5 million app installs within six months of launch and is now among the top three brands on its platform. Meanwhile, Virtual Closet, launched in May, has generated more than 200,000 virtual avatars while delivering two-times higher conversion among users.

Beyond organic growth, Nykaa announced the acquisition of a 51 per cent stake in premium dermocosmetic skincare brand Aminu. Founded in 2019, the brand has grown eight-fold over the past three years and is profitable. Nykaa said the acquisition will strengthen its House of Nykaa portfolio and deepen its presence in premium science-backed skincare, with the founders continuing to lead the business.

Commenting on the acquisition, Adwaita Nayar, Co-founder and Executive Director of Nykaa and CEO of House of Nykaa, said, "At Nykaa, we are building the House of Nykaa, a portfolio of distinctive brands that are redefining beauty for the Indian consumer. Aminu is a natural addition to that vision. Its premium positioning, loyal following, and genuine R&D depth make it more than an acquisition, it's a capability addition to our ecosystem."