FSN E-Commerce Ventures Ltd. aka Nykaa delivered exceptional Q4 results with net profit rising to ₹79 crore from ₹20.3 crore in the previous year, representing a 286% increase. According to latest exchange filings, the company's revenue grew 28.4% year-on-year to ₹2,648 crore in Q4, slightly beating estimates of ₹2,609 crore. The strong performance was driven by robust demand across both beauty and fashion segments. For the full year FY26, Nykaa achieved a significant milestone with operating revenue climbing 26% to ₹10,022 crore and profit more than doubling to ₹204 crore. The PAT surged 16% sequentially from ₹68 crore in Q3 FY26, while the topline fell 8% quarter-on-quarter due to change in seasonal demand, as typically the December quarter is the best for ecommerce companies.
The company's largest growth engine was led by the beauty segment, with revenue rising 27.2% during the quarter to ₹2,410 crore. As reported by NDTV Profit, fashion revenue demonstrated even stronger momentum with 40% growth to ₹225 crore. Most significantly, the fashion business turned EBITDA positive during the quarter, marking a crucial milestone for the company's diversification strategy. The beauty vertical delivered strong growth with GMV rising 27% year-on-year to ₹14,954 crore, supported by sustained momentum across e-commerce, physical retail, and owned brands under the House of Nykaa. Nykaa's loyalty programme One Nykaa's overall customer base crossed 66 million, underscoring strong customer acquisition and engagement across platforms. The company now serves over 55 million consumers who are among the most engaged and premium customers in India.
According to latest exchange filings, FSN E-Commerce's consolidated gross merchandise value (GMV) grew 28% year-on-year to ₹5,241 crore in Q4 FY26, while gross profit rose 32% on-year to ₹1,203 crore. Most notably, EBITDA increased 67.2% YoY to ₹223 crore in Q4 FY26, with EBITDA margins expanding to 8.4% from 6.5% in the corresponding quarter last year, marking the highest-ever margins for the company. Profit before tax increased to ₹122 crore, up 3X YoY. The company's in-house beauty and fashion brands demonstrated exceptional performance with GMV for the full year standing at ₹3,176 crore, marking 49% YoY growth. As of Q4 FY26, the platform had served over 16 million customers for its in-house brands. Consolidated gross margin expanded to a 14-quarter high of 45.4% in Q4FY26, aided by a better sales mix led by its own brand portfolio under 'House of Nykaa' including fast-growing brands such as Dot & Key, Kay Beauty and Earth Rhythm.
The fashion segment's EBITDA margin improved 1,052 basis points year-on-year to 0.3% in Q4FY26, while its full-year EBITDA margin stood at -2.6%. To be sure, fashion still contributes less than 10% of overall revenues, which crossed the ₹10,000-crore mark in FY26. However, management's strategy of premiumization, sharper customer targeting and brand partnerships has supported robust growth in the segment. The fashion segment's GMV rose 29% year-on-year, outpacing the beauty and personal care segment for the third straight quarter. New customer acquisitions jumped 40% over last year, driven by a wider assortment with more than 1,280 fashion brands added during FY26, alongside marquee global partnerships such as H&M and Nike. As reported by Motilal Oswal Financial Services, this time fashion has seen growth and profitability moving together, though the trajectory remains positive, the fashion vertical has seen volatility earlier and sustaining both growth and profitability together remains key.
According to NDTV Profit, shares of Fsn E-Commerce Ventures Ltd. rose 0.44% to ₹274.50 on the NSE on Thursday, outperforming the 0.02% decline in the benchmark Nifty index. On Friday, Nykaa shares hit a new 52-week high of ₹285.60 intraday after the robust quarterly results. The stock has risen 3.53% year-to-date and 37% in the last 12 months. The positive market response reflects investor confidence in the company's strong quarterly performance. Nykaa's loyalty programme One Nykaa's overall customer base crossed 66 million, underscoring strong customer acquisition and engagement across platforms. The results came in after market hours on Thursday, with the stock trading at ₹274.50 apiece on the NSE. However, as noted by HDFC Securities, while Nykaa's step-up in customer acquisition is encouraging, how much of it is sustainable remains to be seen in the medium term.
