On a sequential basis, profit rose 105% from ₹33 Cr.

Operating revenue increased 27% YoY and 23% QoQ to ₹2,873.3 Cr. Including other income of ₹6.3 Cr, total income stood at ₹2,879.5 Cr.

Meanwhile, total expenses rose 24% YoY to ₹2,753.5 Cr. The company incurred an exceptional item loss of ₹16.4 Cr during the quarter under review due to the recent notification of new labour codes.

Its EBITDA grew 63% YoY to ₹230 Cr, with margin expanding to 8% from 6.2% in the year-ago quarter.

Gross merchandise value (GMV) soared to a record high, jumping 28% YoY ₹5,795 Cr. Nykaa said its record performance was driven by robust growth in the beauty segment and accelerated momentum in fashion, together resulting in mid-20s net sales value (NSV) growth.

"This performance reflects steady execution against our strategic priorities, as we continue to invest in assortment expansion, offline growth, and technology-led discovery, alongside a disciplined focus on efficiency. These foundations position us well for sustained, long-term growth," executive chairman, founder and CEO Falguni Nayar said.

Now, let's take a look at the financial performance of the company's three verticals:

Beauty & Personal Care: This vertical's profit surged 56% YoY to ₹156.6 Cr, while its revenue zoomed 27% YoY to ₹2,622.4 Cr.

Fashion: Nykaa managed to trim the segment's loss by 20% YoY to ₹20.3 Cr, while its revenue increased 18% YoY to ₹235 Cr.

Others: This segment, which includes Nykaa Superstore and other online marketplaces, saw a near 2X spike in revenue to ₹15.9 Cr, while its loss rose 45% YoY to ₹11.5 Cr.

The beauty vertical's GMV grew 27% YoY to ₹4,302 Cr, supported by sustained momentum across ecommerce, physical retail, and owned brands under the House of Nykaa. The customer base for this segment grew to 4.2 Cr during the quarter, representing 30% YoY growth.

Nykaa To Replicate Nike-Like Partnerships For Fashion Vertical

While Nykaa's beauty vertical continued to anchor the company's performance in Q3, the management said it is looking to strengthen Nykaa Fashion's financial profile through deeper, full-stack brand partnerships.

This approach is reflected in Nykaa Fashion's recent strategic partnership with Nike, under which Nykaa will run the sportswear major's ecommerce operations in India end-to-end. The arrangement covers the Nike India website and the Nike Commerce App, with Nykaa managing on-site experience, digital marketing, fulfilment and customer experience.

CEO Nayar said the partnership leverages Nykaa's existing technology and logistics stack, which has been built to operate at scale across the country. She added that the company could look into entering similar partnerships with other global brands in the near future.

"We have a tech stack that can be made ready to offer partners their website and can support it through fulfilment," Nayar said, adding that this model allows Nykaa to operate as a full-service ecommerce partner rather than a pure marketplace.

According to her, this way of operating enables Nykaa to combine customer reach, fulfilment capabilities and premium brand execution under a single operating framework.

Nykaa's fashion head Abhijeet Dabas said that the Nike partnership positions it as a differentiated player in fashion ecommerce, capable of taking on full-stack responsibilities where there is a strong strategic fit.

The company added that such partnerships create a scalable template for future collaborations, while remaining disciplined on margins and unit economics as Nykaa Fashion looks to improve its financial performance.

Besides the recent partnership, the company saw the impact of the expansion it has undertaken to enhance its catalogue. In recent times, Nykaa Fashion onboarded brands like H&M, Gap, Snitch, Bonkers, Mia by Tanishq, GAS, Guess, and others - strengthening both core and emerging categories.

With this, fashion GMV grew 31% YoY to ₹1,476 Cr, leading to an improvement in its EBITDA margin from negative 5.3% last year to negative 2% this quarter.

Nykaa Now's Growing Orders

Nykaa said that its quick commerce vertical Nykaa Now, has now expanded to 7 key cities. In a post-earnings call, the company management claimed that the Nykaa Now's BPC catalogue has now overtaken offerings on other quick commerce platforms.

Without divulging numbers, Nykaa's beauty vertical CEO Anchit Nayar said that Nykaa Now is catering to a "significant portion" of the company's overall orders in cities it is present in.

Moving forward, the company plans to expand the number of operational hours for this service to attract a larger cohort of customers. While the average order value (AOV) on hyperlocal could be lower than the main Nykaa platform, this is offset by higher purchase frequency, and the company does not see a need to drive AOV expansion. Overall, Nykaa said the hyperlocal initiative is not dilutive to its profitability.

Shares of Nykaa ended today's trading session 2.95% higher at INR 258.25 on the BSE. The company released Q3 numbers after market hours.

[Edited by: Vinaykumar Rai]