FSN E-Commerce Ventures Limited, the parent of beauty and fashion platform Nykaa, has reported sharp gains in revenue and profitability for the quarter and fiscal year ended March 2026. The company crossed the $1 billion annual revenue milestone as it continued scaling its beauty, fashion and owned-brand businesses.
The Mumbai-based company's revenue from operations rose 28.4% year on year to Rs 2,648 crore in the March quarter (Q4 FY26), from Rs 2,062 crore a year earlier, marking its strongest quarterly growth in the last 12 quarters.
Net profit for the quarter surged 4x to Rs 78.8 crore from Rs 19.1 crore in Q4 FY25, and rose 16.3% sequentially from Rs 67.74 crore in the December quarter.
For the full fiscal year FY26, Nykaa's operating revenue increased 26.1% to Rs 10,022 crore from Rs 7,950 crore in FY25, helping the company surpass the $1-billion revenue mark for the first time. Its profit more than doubled to Rs 204 crore in FY26. Consolidated gross merchandise value (GMV) grew 28% year on year to Rs 19,963 crore.
Founder and CEO Falguni Nayar described the milestone as a defining moment for the company. "Crossing the $1 billion revenue milestone along with track record for profitability and capital efficiency marks a defining moment in Nykaa's 14-year journey," Nayar said in a statement.
The beauty segment continued to dominate the company's business mix, accounting for 91.01% of Q4 revenue at Rs 2,409.4 crore, while the fashion business contributed 8.5% of quarterly operating revenue.
Growth drivers
Nykaa's profitability gains were driven by growing scale and operating leverage. EBITDA for the March quarter rose 67% year on year to Rs 223 crore, while EBITDA margins expanded to 8.4%, the company's highest-ever quarterly margin. For the full year, EBITDA increased 59% to Rs 752 crore, with annual margins
improving to 7.5% from 6% a year earlier.
Despite rising costs, the company maintained margin expansion. Cost of materials remained the largest expense component, accounting for nearly 57% of total expenditure and rising to Rs 1,445 crore during Q4 FY26. Total quarterly expenses climbed to Rs 2,536 crore, driven by higher employee costs, finance expenses, marketing investments, technology spending, and other overheads.
Nykaa's beauty vertical remained the company's primary growth engine, with beauty GMV rising 27% year on year to Rs 14,954 crore in FY26. The company added more than 200 international beauty brands during the year, including Chanel Beauty and Fragrance, Armani Beauty, SK-II, Kylie Cosmetics, and Paula's Choice.
The retailer also aggressively expanded its offline presence, adding 76 stores during the year to take its network to 313 stores across 99 cities. The company said it continued to see double-digit same-store sales growth while experimenting with experiential retail concepts such as fragrance-led 'Nykaa Perfumery' stores and community-driven formats like 'Kay Kafe'.
Its owned brands portfolio, housed under House of Nykaa, achieved an annualised GMV run-rate of Rs 3,176 crore, up 49% year on year. The company said the business now serves more than 17 million customers across 12 beauty and fashion brands.
Nykaa's B2B platform, Superstore by Nykaa, also continued to scale rapidly, growing from Rs 325 crore GMV in FY23 to Rs 1,187 crore in FY26. The platform now caters to nearly 4.93 lakh registered retailers and works with over 220 brands.
The fashion vertical posted 30% year-on-year GMV growth to Rs 4,954 crore in FY26, aided by launches of more than 1,280 brands and deeper partnerships with labels such as Nike and H&M.
Meanwhile, Nykaa's board has approved the acquisition of an additional 24.17% stake in Earth Rhythm Private Limited for up to Rs 9.4 crore in cash. The company expects the transaction to be completed by August 31, 2026. Nykaa had previously acquired a majority stake in the clean beauty brand and completed the acquisition of the remaining stake during FY26.
Edited by Swetha Kannan