FSN E-Commerce Ventures, the parent company of Nykaa, reported a sharp rise in profitability for the second quarter of FY27, supported by strong beauty business growth, improved operating margins and narrowing losses in its fashion segment.

Nykaa Q2 FY27 Results: Profit Jumps Threefold as Revenue Grows 28%

Nykaa Q2 FY27 results highlight a significant improvement in the company’s financial performance, with parent company FSN E-Commerce Ventures reporting a threefold increase in net profit for the quarter. The company’s net profit rose to approximately ₹101 crore, compared with ₹34 crore in the corresponding quarter of the previous financial year.

The company’s operating revenue increased 28.1% year-on-year to ₹3,006 crore, up from ₹2,346 crore in Q2 FY26. The results reflect continued growth in Nykaa’s core beauty and personal care business, alongside improving performance in its fashion segment.

The company also recorded a stronger operating performance, with EBITDA growing faster than revenue during the quarter.

1. Net Profit Rises to ₹101 Crore

FSN E-Commerce Ventures reported a net profit of ₹101.2 crore for Q2 FY27, representing an increase of approximately 206.8% compared with the ₹34 crore reported in the same period last year.

The sharp rise in profitability indicates an improvement in the company’s ability to convert revenue growth into earnings. Its operating revenue expanded by 28.1% year-on-year, reaching ₹3,006 crore.

Total expenses increased 24.8% year-on-year to ₹2,867.1 crore. The slower pace of expense growth compared with revenue growth contributed to the improvement in profitability.

2. EBITDA Growth Strengthens Operating Margins

Nykaa’s operating profitability also improved significantly during the quarter. EBITDA increased 65.6% year-on-year to ₹263 crore, compared with ₹159 crore in Q2 FY26.

The company’s EBITDA margin expanded to 8.7%, up from 6.8% in the corresponding quarter last year.

The improvement in margins indicates stronger operating efficiency as the company continues to scale its business. EBITDA growth exceeding revenue growth was one of the key highlights of the quarterly performance.

3. Beauty Business Continues to Drive Revenue

The Beauty and Personal Care (BPC) segment remained Nykaa’s largest business contributor during the quarter.

Revenue from the segment grew 26.6% year-on-year to ₹2,699.7 crore. Its segment profit before exceptional items increased to ₹180.2 crore, compared with ₹105.4 crore in Q2 FY26.

The performance highlights the continued contribution of beauty and personal care products to Nykaa’s overall business growth.

4. Fashion Segment Reports Narrower Losses

Nykaa’s fashion business also recorded improvement during Q2 FY27. Revenue from the segment increased 42.9% year-on-year to ₹287.2 crore.

More importantly, the segment’s loss before exceptional items narrowed to ₹7.7 crore, compared with ₹21.4 crore in the corresponding period last year.

The reduction in losses suggests improving financial performance in the fashion business, even as the segment continues to operate below profitability.

5. Nykaa Approves Simply Nam Beauty Acquisition

Alongside its quarterly financial results, Nykaa announced a corporate development involving premium makeup brand Simply Nam Beauty.

The company’s board approved the acquisition of an 82% stake in Simply Nam Beauty for a cash consideration of up to ₹33 crore. The transaction is expected to be completed by December 31, 2026.

The proposed acquisition adds another development to Nykaa’s beauty business strategy and expands its portfolio through a stake in the premium makeup brand.

What Nykaa’s Q2 FY27 Results Indicate

Nykaa’s second-quarter performance reflects growth across its major business segments, with the beauty and personal care division continuing to contribute significantly to revenue. The expansion in EBITDA margin and narrowing fashion losses also point towards improving operating performance.

With net profit reaching ₹101 crore and revenue crossing ₹3,000 crore during the quarter, the company has reported stronger financial results compared with the same period last year.

The Simply Nam Beauty acquisition proposal adds another strategic development as Nykaa continues to expand its presence in the beauty market. The company’s performance in the coming quarters will be important in assessing whether its revenue momentum and improving profitability can be sustained.