FSN E-Commerce Ventures, the parent company of beauty and fashion retailer Nykaa, delivered exceptional financial results for Q2 FY27. The company reported a 207% year-on-year increase in net profit to ₹101.2 crore compared to ₹33 crore in Q2 FY26. Revenue from operations grew 28.1% YoY to ₹3,006 crore from ₹2,346 crore in the corresponding quarter last year. The company's gross margin improved by 106 basis points YoY to 46% in the September quarter, compared with 44.9% in Q2 FY26, supported by rising contribution from its House of Nykaa portfolio and an uptick in marketing income. The company's consolidated gross merchandise value (GMV) grew 30% annually to ₹6,151 crore, demonstrating strong customer engagement across its platform. Sequentially, net profit increased 26.9% while revenue grew 8.1%, indicating sustained momentum in the business.
The company's operational efficiency showed significant improvement with EBITDA increasing 65.4% YoY to ₹263 crore from ₹159 crore in the year-ago quarter, beating estimates. EBITDA margin expanded by 200 basis points to 8.7% compared with 6.7% in Q2 FY26, surpassing the estimated margin of 8.6%. Profit before tax stood at ₹148.5 crore against ₹55.4 crore in Q2 FY26, demonstrating the company's enhanced profitability across all key metrics. The company's EBITDA margin also expanded to 8.75% in contrast to 6.75% YoY, reflecting improved operational efficiency and cost management. Return on Capital Employed (ROCE) rose to 27.3% in H1FY27, compared to 21.2% in FY26, indicating strong capital efficiency improvements. Total expenses increased 24.8% YoY to ₹2,867.1 crore, which grew slower than revenue, demonstrating effective cost management.
Nykaa's beauty vertical recorded a 28% NSV growth during the quarter, with Net Sales Value (NSV) rising 28% YoY to ₹2,699.7 crore. EBITDA for the Beauty vertical stood at ₹267 crore, resulting in an EBITDA margin of 10.5% on NSV, an expansion of 158 basis points YoY. The segment benefited from strong customer momentum, with Annual Unique Transacting Customers (AUTC) growing 26% YoY to 22.1 million. Beauty GMV for the quarter stood at ₹4,454 crore, encompassing e-commerce, retail stores, and B2B distribution. The company hosted the fourth edition of Nykaaland, its immersive beauty festival, attracting more than 100,000 beauty enthusiasts and bringing together over 1,500 celebrities, creators and key opinion leaders alongside over 150 international and homegrown brands. In its investor presentation, the company highlighted that monthly average unique visitors to its beauty platform increased 30% to 54.1 million, while average units per transaction rose 26% to 22.1 million and average order value increased 5% to ₹2,149.
The Fashion segment marked a significant milestone by turning profitable at the EBITDA level. Fashion revenue grew 42.9% YoY to ₹287.2 crore (NSV basis), while EBITDA improved from a loss of ₹21.4 crore in Q2FY26 to a profit of ₹7.7 crore in Q2FY27. This represents an EBITDA margin improvement of 371 basis points, reaching 0.2% on NSV. The turnaround was driven by a 419 basis points reduction in marketing and selling expenses as a percentage of NSV, alongside a 96 basis points decrease in fulfilment costs due to better delivery routing and freight economics. The company's retail footprint expanded to 338 stores across 111 cities, with total retail space increasing 26% YoY to over 3.4 lakh sq. ft. The fashion vertical also witnessed growth with GMV increasing 42% YoY to ₹1,674 crore.
Along with the earnings, Nykaa's board of directors approved the acquisition of an 82% stake in Simply Nam Beauty for a consideration of up to ₹33 crore. Simply Nam is a premium makeup brand led by celebrity makeup artist Namrata Soni, with a turnover of ₹16.99 crore in FY26 compared with ₹9.61 crore in FY25 and ₹3.70 crore in FY24. The acquisition aims to capture the white space in the premium professional makeup segment, leveraging Simply Nam's strong brand recall and formulations built for Indian skin. Following the transaction, Soni will hold an 18% stake and serve as Co-Founder and Chief Product Officer. The company also strengthened its strategic partnership with L'Oréal through a collaboration with BOLD, the French beauty major's corporate venture capital fund, to jointly invest in high-growth Indian beauty and personal care brands. Nykaa shares closed at ₹355.10 on the BSE, up ₹1.10, or 0.31%, with a 52-week high of ₹356.50 and a 52-week low of ₹218.75.
