Nykaa Profit Triples as Beauty Scales

CA Aaditya Jain

5 days ago

5 min read

Updated: 5 minutes ago

Cover image of the Katrela Ventures Daily Update for 5 November 2026: Nykaa Profit Triples as Beauty Scales

Katrela Ventures Daily Update · Investment, M&A and Business Innovation Digest · 5 November 2026

Key takeaways

Nykaa's Q2 FY27 consolidated net profit rose 206.8% year on year to ₹101.2 crore on operating revenue of ₹3,006 crore, up 28.1%.
EBITDA rose 65% to ₹263 crore, lifting the margin to 8.7% from 6.8%; the fashion business turned EBITDA-positive.
Lenskart's Q2 FY27 net profit rose 124.7% to ₹232.5 crore on revenue of ₹2,845 crore, up 35.7%.
The Union Cabinet approved a ₹2,814 crore capex support scheme for lithium and nickel processing over FY27 to FY31.
Funding: EloElo Group raised $80 million (Series C), altM $10.3 million (Series A) and OneStack ₹12.5 crore.

Stay ahead with the latest funding rounds, strategic acquisitions, and groundbreaking innovations shaping the business world!

📩 #Read the full update below.

01. TOP STORIES

Cabinet Clears ₹2,814 Crore Scheme for Lithium and Nickel Processing: The Union Cabinet on 4 November approved the Capex Support Scheme to Promote Critical Mineral Processing, with an outlay of ₹2,814 crore over FY27 to FY31 for two lithium plants of at least 30 kilotonnes each and two nickel plants of at least 50 kilotonnes each. Support covers 30% of eligible capex, capped at ₹500 crore per lithium and ₹900 crore per nickel beneficiary, with least-cost bidding and three milestone-linked tranches.

Lenskart Profit More Than Doubles as Revenue Rises 36%: Lenskart reported Q2 FY27 consolidated net profit of ₹232.5 crore, up 124.7% from ₹103.5 crore, on operating revenue of ₹2,845 crore, up 35.7%, in results released on 4 November. International revenue rose 36.5% to ₹1,201.1 crore while that segment's profit more than tripled to ₹97.2 crore.

02. QUICK TAKES

Nykaa Profit Triples as Beauty Scales

Nykaa (FSN E-Commerce Ventures) reported its Q2 FY27 results on 4 November, with consolidated net profit rising 206.8% year on year to ₹101.2 crore from ₹33 crore. Operating revenue grew 28.1% to ₹3,006 crore, while total expenses rose a slower 24.8% to ₹2,867.1 crore. EBITDA climbed 65% to ₹263 crore, lifting the margin to 8.7% from 6.8% a year earlier. Management credited beauty growth to new customer acquisition, repeat engagement and a wider store network, and the profit gain to stronger beauty profitability and narrower fashion losses.

Consolidated GMV rose 30% to ₹6,151 crore and gross margin improved to 46% from 44.9%. Beauty, the core business, grew revenue 26.6% to ₹2,699.7 crore, with GMV up 25% to ₹4,454 crore, monthly average unique visitors up 30% to 54.1 million and average order value up 5% to ₹2,149. Fashion grew faster, with GMV up 42% to ₹1,674 crore and EBITDA turning positive at ₹1 crore from a ₹12 crore loss. The company added 14 stores to reach 338 in 111 cities, took quick-commerce service Nykaa Now to 15 cities, and its board approved buying an 82% stake in brand Simply Nam for up to ₹33 crore.

Globally, McKinsey's State of Beauty 2025 report (June 2025) sizes the beauty industry at about $450 billion, after growth of roughly 7% a year in 2022 to 2024, and expects about 5% a year through 2030, with online's share rising from 26% in 2024 to nearly one-third. Executives in its survey named India and the Middle East as the most promising growth markets. In India, an Aditya Birla Capital report (August 2026) projects the beauty and personal care market rising from $23 billion in FY26 to $42 billion by FY31, about 12% a year, which would make India the fourth-largest market by 2030. It expects online share to rise from 25% to 34% and organised offline retail from 27% to 32% over the same period.

The tailwinds come from a larger digital shopper base: the same report sees active beauty shoppers rising from 140 million in FY26 to 200 million by FY30, with Gen Z and Gen Alpha accounting for nearly half of spending by FY31. Quick commerce is expected to handle replenishment orders while specialist platforms drive discovery and premium purchases, which fits Nykaa's store and Nykaa Now expansion. The headwinds are competition and consumer caution: lower launch barriers mean new-age brands with over ₹100 crore in annual revenue could rise from 70 to 80 today to more than 150 by FY31, and 54% of executives in McKinsey's survey named uncertain consumer appetite or restricted spending as the biggest risk to growth. The Aditya Birla Capital report also notes that scaling beyond these higher benchmarks can be operationally challenging.

Among listed consumer platforms reporting the same quarter, Lenskart grew revenue faster (35.7% vs 28.1%) and earned more than twice the profit (₹232.5 crore vs ₹101.2 crore), though Nykaa's profit grew faster (206.8% vs 124.7%). Lenskart's early results disclosure did not include EBITDA, so a margin comparison is not yet possible. Honasa Consumer, the Mamaearth parent, had not published Q2 FY27 numbers at the time of writing; in Q1 FY27 it grew revenue 27% to ₹755.9 crore with net profit of ₹90.5 crore. Its Q2 figures will show whether brand owners are growing at the same pace as the platforms that sell them.

Katrela's Take

➢Nykaa's quarter shows operating leverage arriving in Indian beauty retail: expenses grew slower than revenue, and fashion has reached EBITDA breakeven. For founders of beauty and personal care brands, a platform adding stores, quick-commerce cities and acquisitions such as Simply Nam widens the routes to scale and to exit. The opportunity lies in the projected rise of online and organised retail share; the constraint is a crowded brand field that keeps customer acquisition costs high. Metrics to track: beauty GMV growth, consolidated EBITDA margin, Nykaa Now city count and fashion EBITDA.

Will quick commerce help beauty brands scale profitably, or mainly add another costly channel?

03. FUNDING BRIEF

EloElo Group-a consumer AI and entertainment company that operates micro-drama platform Story TV-has raised $80 million (₹758.7 crore approx.) in a Series C round led by Hornbill Capital and NBCUniversal.

altM-a Bengaluru-based maker of chemicals and materials from crop residues-has raised $10.3 million (₹97.7 crore approx.) in a Series A round led by Rainmatter by Zerodha and Mela Ventures, with participation from existing investors Omnivore, Theia Ventures, Aureolis Ventures and Spectrum Impact.

OneStack-a Mumbai-based fintech infrastructure startup-has raised ₹12.5 crore ($1.3 million approx.) in a funding round backed by new investor Shepherd's Hill, with participation from existing backers Pentathlon Ventures and AVNM Ventures.

Building a consumer brand and preparing for your next raise? Katrela Ventures supports founders with financial planning and investor readiness.

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Frequently asked questions

How did Nykaa perform in Q2 FY27?

Nykaa's consolidated net profit rose 206.8% to ₹101.2 crore, operating revenue grew 28.1% to ₹3,006 crore and EBITDA climbed 65% to ₹263 crore, an 8.7% margin. Consolidated GMV rose 30% to ₹6,151 crore.

How big is India's beauty and personal care market expected to become?

An Aditya Birla Capital report (August 2026) projects the market to grow from $23 billion in FY26 to $42 billion by FY31, about 12% a year, with online share rising from 25% to 34%.

What should beauty brand founders track, according to Katrela Ventures?

Katrela Ventures suggests tracking beauty GMV growth, consolidated EBITDA margin, Nykaa Now city count and fashion EBITDA. The opportunity is the rising share of online and organised retail; the constraint is high customer acquisition cost in a crowded brand field.

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