In a blockbuster earnings report released on February 5, 2026, Nykaa (FSN E-Commerce Ventures) announced that its consolidated net profit for the third quarter (Q3 FY26) skyrocketed by 2.5 times to reach ₹68 crore.
The results significantly exceeded analyst expectations, driven by a strong festive season, improved operating efficiency, and a robust performance in its core beauty segment.
1. Q3 FY26 Financial Highlights
Nykaa’s “seasonal high” quarter (ending December 2025) saw growth across all key financial metrics.
| Metric | Q3 FY26 (Current) | Q3 FY25 (Previous) | Change (YoY) |
| Consolidated Net Profit | ₹68 Crore | ₹27 Crore | ↑ 151% (2.5x) |
| Revenue from Operations | ₹2,873 Crore | ₹2,267 Crore | ↑ 27% |
| Gross Merchandise Value (GMV) | ₹5,795 Crore | ₹4,527 Crore | ↑ 28% |
| Consolidated EBITDA | ₹230 Crore | ₹141 Crore | ↑ 63% |
| EBITDA Margin | 8.0% | 6.2% | ↑ 179 bps |
- Exceptional Impact: The reported profit includes a one-time impact from the implementation of new labor codes. Excluding this exceptional item, the net profit would have been approximately ₹78 crore.
- Sequential Growth: Profit more than doubled from the ₹33 crore recorded in the previous quarter (Q2 FY26).
2. Segment Performance
While beauty remains the engine of the company, the fashion segment showed a notable reduction in losses.
- Beauty & Personal Care (BPC):
- Revenue: ₹2,622 crore (up 27% YoY).
- GMV: ₹4,302 crore (up 27% YoY).
- EBITDA Margin: Improved to 10.1% from 8.8%, reflecting premiumization and the success of in-house brands like Dot & Key and Kay Beauty.
- Fashion:
- Revenue: ₹235 crore (up 18% YoY).
- GMV: ₹1,476 crore (up 31% YoY).
- Strategy: Despite intense competition, losses narrowed as the segment benefited from higher-value orders and optimized marketing spends.
3. Strategic “Quick Commerce” & AI Moves
Nykaa is pivoting toward faster delivery and technology-led discovery to maintain its market lead.
- Nykaa Now: The company’s quick-commerce service is now live in 7 major cities, offering delivery in as little as 30 minutes. It currently features a curated assortment of 700+ brands.
- AI Integration: CEO Falguni Nayar highlighted that Artificial Intelligence is being used to improve digital marketing efficiency and “personalized discovery,” which helped drive the 28% jump in active advertisers.
- Physical Footprint: Nykaa expanded its offline presence to 276 stores across 94 cities, with new specialized formats like Nykaa Perfumery seeing 3x higher average order values than standard stores.
4. Stock Market Reaction
Investors cheered the results, viewing the 179-basis-point margin expansion as a sign of long-term sustainability.
- Share Surge: Nykaa’s share price rose by 4% to 5% on the morning of February 6, 2026, hitting a one-month high of ₹271.80 on the NSE.
- Market Cap: The rally pushed the firm’s market capitalization back above the ₹76,000 crore ($8.5 billion) mark.
Conclusion: Profitability Over Volume
Nykaa’s Q3 performance suggests the company has successfully transitioned from “buying growth” to “harvesting profit.” By leveraging its “House of Brands” and expanding into high-margin categories like luxury fragrances, Falguni Nayar’s firm is proving that it can defend its territory against both traditional retailers and the rise of generalist quick-commerce players.
