Nykaa Q1 net profit jumps 243% to Rs 80 crore; revenue up 29%

Beauty and fashion retailer Nykaa has kicked off the new financial year with a sharp jump in profitability. The company's consolidated net profit for the first quarter of FY27 rose 243% year-on-year to Rs 80 crore, while revenue from operations climbed 29% compared to the same period last year.

The results, announced on Tuesday, mark one of the strongest quarterly performances for the Mumbai-based company in recent quarters. The profit figure represents a more than three-fold increase from the year-ago period, signalling improving operational efficiency across its businesses.

Revenue growth and segment performance

Nykaa's revenue growth was broad-based, with both its core beauty and personal care segment and the fashion vertical contributing to the topline. The company said its fashion business turned EBITDA positive during the quarter — a key milestone for a segment that has been in investment mode for several quarters.

The beauty segment continued to be the main growth driver, supported by steady consumer demand and an expanding product catalogue. The company has been focusing on premiumisation and increasing customer engagement through its app and retail stores.

Aminu acquisition

Alongside the earnings announcement, Nykaa revealed that it will acquire a 51% stake in direct-to-consumer skincare brand Aminu. The deal is valued at Rs 32 crore, according to a regulatory filing.

Aminu, known for its dermatologically-tested skincare products, will add to Nykaa's portfolio of owned brands. The acquisition fits into Nykaa's broader strategy of building a house of brands, particularly in the high-margin skincare category where consumer interest has been rising sharply.

Cost controls and profitability

The sharp jump in net profit suggests the company has managed to rein in costs even as it continues to spend on marketing and new store openings. Operating leverage appears to be kicking in, with fixed costs spread across a larger revenue base.

Analysts will be watching whether the profit momentum can be sustained through the rest of the fiscal year. The company has not yet provided a formal guidance for the full year, but the Q1 numbers are likely to boost investor confidence.

What lies ahead

Nykaa's focus now shifts to integrating Aminu and scaling its fashion business further. The company is also expected to continue expanding its physical retail footprint, with more stores planned in tier-2 and tier-3 cities.

Investors will be keen to see if the fashion vertical can maintain its positive EBITDA trajectory and whether the Aminu acquisition delivers the expected synergies. The next quarter's results will offer more clarity on the sustainability of this growth.