Sequentially, the company's profit grew 29% from INR 19 Cr.

The beauty and personal care (BPC) major's operating revenue rose over 23% to INR 2,154.9 Cr from INR 1,746.1 Cr in the year-ago quarter. On a sequential basis, Nykaa's top line expanded 5% from INR 2,061.8 Cr.

Including other income of INR 9.3 Cr, total income for the quarter stood at INR 2,164.3 Cr. Meanwhile, expenses rose over 23% YoY to INR 2,120.6 Cr.

EBITDA jumped 46% YoY to INR 141 Cr, while EBITDA margin improved by 102 basis points to 6.5%.

Nykaa also announced the acquisition of an additional 40% stake in its health and wellness supplements subsidiary Nudge for INR 14.3 Lakh from Onesto Labs Pvt Ltd. Post the transaction, which will be completed by September 30, Nudge will become Nykaa's wholly owned subsidiary.

It said that the transaction aligns with its intent to build and scale its presence in the wellness sector, particularly in the dietary supplements and nutricosmetics categories.

The company's other business posted a revenue and loss of INR 8.7 Cr each in the quarter.

"This quarter's performance underscores Nykaa's ability to consistently balance growth and profitability across both our beauty and fashion businesses…Since our IPO, we have consistently delivered mid-20s growth at a consolidated level. Our cumulative customer base now stands at 45 Mn, reflecting the growing trust and adoption of our platform," CEO and executive chairperson Nayar said.

With that, let's take a deeper look at Nykaa's performance this quarter.

Nykaa Beauty Continues To Shine, Fashion Sees Rebound

The growth of Nykaa's beauty segment continued to outpace its fashion vertical. Revenue from the beauty vertical surged over 25% YoY to INR 1,957.4 Cr, while its profit grew 32% to INR 96.3 Cr.

The vertical's gross merchandise value (GMV) increased 26% YoY to INR 3,208 Cr, supported by strong performance across ecommerce, retail stores, eB2B distribution and House of Nykaa portfolio.

The beauty vertical's customer base increased 29% YoY to over 3.9 Cr users during the quarter, with average order value of INR 2,009.

Nykaa said that offline retail network expansion continued to be the primary driver of growth for the business, with it expanding its on-ground presence by 36% YoY to 2.5 Lakh sq ft. At the end of the quarter, Nykaa operated 250 beauty stores across 82 cities.

Notably, Q1 was the first full quarter of operations of the company's recently launched quick commerce vertical, Nykaa Now. The company said that Nykaa Now has fulfilled over 1.3 Mn orders to date across 7 cities via 50+ rapid delivery stores, "seeing a growing resonance with urban beauty consumers as it continues to scale in a sustainable fashion".

House of Nykaa's GMV grew 70% YoY to INR 2,300 Cr during the quarter under review.

The company said that Dot & Key emerged as India's leading D2C skincare brand with an annualised GMV run rate of INR 1,500 Cr. Without giving numbers, it said that the brand is operating with a high-teens EBITDA margin. For Kay Beauty, the annualised GMV run rate grew 56% YoY to INR 250 Cr.

Its B2B arm Superstore reported a 40% YoY growth in GMV to INR 288 Cr. Meanwhile, its reach expanded to 3.05 Lakh retailers across 1,100 cities, growing by 45% YoY.

The fashion vertical saw its revenue rise 15% to INR 170.8 Cr and loss narrow 11% YoY to INR 27 Cr. The company said that its GMV grew 25% YoY to INR 964 Cr.

Nykaa said that the core fashion platform saw a strong recovery in the quarter due to an over 32% YoY improvement in its customer base, which stood at 85 Lakh in the quarter, and the 20 Lakh orders it served in the quarter.

Shares of Nykaa Nykaa ended today's trading session 0.66% higher at INR 204.95 on the BSE.