FSN E-Commerce Ventures Nykaa delivered exceptional Q1 FY27 results, with consolidated net profit jumping 226% to ₹80 crore compared to ₹24 crore a year earlier. The company reported revenue growth of 29% to ₹2,782 crore in the June quarter, up from ₹2,155 crore a year earlier and ₹2,648.1 crore in the previous quarter. According to Business Standard, the EBITDA improved by 68% to ₹236 crore from ₹140 crore in the previous year, with the EBITDA margin expanding by 196 basis points to 8.5% in Q1 FY27, up from 6.5% in the corresponding quarter last year. The gross merchandise value (GMV) rose 34% YoY to ₹5,590 crore, about 3 times the level from three years ago, while gross profit rose 33% YoY to ₹1,276 crore. The strong performance was supported by healthy growth in the beauty and personal care (BPC) business and continued improvement in the fashion segment, with the results coming after the company's business update indicated a strong start to FY27.
The fashion business delivered exceptional performance with GMV rising 53% YoY to ₹1,471 crore, with net sales value (NSV) increasing 54% YoY to ₹451 crore, as reported by Business Standard. The segment also reported a meaningful improvement in profitability, with the EBITDA margin (as a percentage of NSV) improving to 0.1% from 6.2% in the year-ago quarter, marking its first EBITDA-positive quarter with positive EBITDA of ₹40 lakh, compared with a loss of ₹18 crore a year earlier. The growth was supported by strong customer additions, with the cumulative customer base expanding 34% YoY to 12 million. The fashion vertical reported a contribution margin of 11.4% and the EBITDA margin for the fashion business was 0.1%, with the customer acquisition cost having dipped 30% over the last two financial years, with visitor-to-order conversion improving 70 bps YoY to 4%. The company strengthened its brand portfolio and strategic partnerships, including Nike and H&M, which continued to support the segment's growth. Momentum remained broad-based across both core and emerging categories, with women's fashion growing 40% YoY, men's fashion surging 83% and kidswear rising 57%. During the quarter, the company added more than 130 new brands, including Birkenstock, Debenhams, and H&M Move, while its partnership with Nike continued to gain traction, with the Nike app crossing 1.5 million installs within six months of launch, making it one of the top three brands on Nykaa's platforms.
The beauty segment powered the quarterly performance with revenue rising 29% YoY to ₹2,371 crore in net sales value (NSV), as reported by Live Mint. The beauty vertical's gross merchandise value (GMV) grew 28% YoY to ₹4,105 crore, supported by continued momentum across its e-commerce platform, offline retail network, and owned brands under the House of Nykaa portfolio. The House of Nykaa continued its strong growth trajectory, achieving an annualised GMV run rate of around ₹3,758 crore, reflecting 39% YoY growth. The portfolio reported net sales value (NSV) of ₹550 crore in the quarter, up 36% YoY, while expanding its customer base to more than 18 million customers, highlighting strong consumer demand and continued brand adoption. The strong growth was supported by exciting new brand launches including 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. The beauty EBITDA rose 48% to ₹244 crore, with margin improving to 10.3% from 9% in the previous year. The BPC EBITDA margin as a percentage of net sales value rose 130 bps YoY to 10.3%, while average order value (AOV) was up 5% YoY in the beauty segment. CNBC TV18 reports that the company's portfolio of 13 owned consumer brands continued to outperform, posting 43% year-on-year growth, while Business Standard reports that Nykaa's Beauty vertical GMV for Q1 FY2027 stood at ₹4,105 crore, with the company expanding its beauty retail footprint to 324 stores across 105 cities, with total retail space increasing 29% YoY to ~3.3 lakh sq. ft.
Nykaa acquired a 51% stake in premium beauty and skincare brand Aminu Wellness for ₹32 crore during the quarter, as reported by CNBC TV18. Aminu Wellness, founded in 2019 by Prachi Bhandari and Aman Mohunta, has been bootstrapped since inception, scaled 8x over the last three years, and is now profitable with FY26 revenue of ₹19.44 crore. The company also expanded its offline footprint by adding 11 stores during the quarter to take its total store count to 324 across more than 100 cities, demonstrating continued physical expansion strategy. According to Business Standard, Executive Chairperson Falguni Nayar highlighted that this quarter marked continued acceleration in growth momentum and EBITDA margins, both reaching their highest levels in the last 12 quarters. She noted that AI-led initiatives are beginning to create meaningful consumer experiences, with Virtual Closet already driving 2x higher conversion and AskNykaa, the company's conversational search engine, emerging as a trusted beauty advisor on the platform. The company also expanded its quick-commerce service Nykaa Now to 13 cities and is expected to reach more than 25 cities by the end of FY27. The AI-powered "Virtual Closet" feature (launched in May 2026) has generated over 200,000 virtual avatars and delivered much higher conversion in its initial months. This physical expansion, combined with the acquisition of Aminu Wellness, supports the company's strategy of premiumisation, expanding brand partnerships, the continued scale-up of owned brands and physical expansion into Tier-II and Tier-III cities to support both revenue growth and margin expansion.
The customer base is around 60 million, up 33% YoY, as reported by Business Standard, with high customer acquisition across both verticals — Nykaa (Beauty and Personal Care) and Nykaa Fashion. The beauty and personal care (BPC) and fashion AUTC (annual unique transacting customers) grew 26.1 and 38.2% respectively, YoY. The raw material-sales ratio was down 120 bps quarter-on-quarter at 54.1%, while marketing costs were 14.8% of operational revenue. The EBIT margin was at 5.3%, with the return on capital employed (ROCE) at 26.8% being good. The company now has over 10,000 brands in its portfolio. The physical network is now 324 stores in 105 cities, with more than half the stores in Tier-2 and Tier-3 cities, with retail space up 29% YoY to 330,000 sq ft, and same store sales growth is in double digits. The retail space is up 29% YoY to 330,000 sq ft, with the company launching a 5,000 square feet store in Delhi during the quarter. For Nykaa to sustain growth plus margin expansion, it will need a strategy of more premiumisation, more brand partnerships, and a scaleup of owned brands, and more physical expansion into Tier-2 and Tier-3 cities.
According to Business Standard, for Nykaa to sustain growth plus margin expansion, it will need a strategy of more premiumisation, more brand partnerships, and a scaleup of owned brands, and more physical expansion into Tier-2 and Tier-3 cities. EBITDA margins will be driven by premiumisation and AI-led cost efficiency. Revenue growth could be over 20% in the medium term and high teens through the long term. There's room for EBITDA margins to double from current levels to around 17%. The fashion vertical reported a contribution margin of 11.4% and the EBITDA margin for the fashion business was 0.1%, with fashion margin picking up to an achievable 10% in the medium term would multiply EBITDA. The fashion could maintain 40% revenue growth through the medium term with improved margins. Net profit margins of between 3.5% and 5% may be achievable in FY27 and FY28. The big question mark is that Nykaa has high valuations. Any minor hiccup in growth or a profitability slowdown could result in a price correction, which may provide a more comfortable entry point for investors.
