Increased quarterly profits by more than double at Nykaa, fueled by demand for beauty products.
In the bustling world of Indian retail, one name that stands out is Nykaa. The beauty products retailer has been making waves, with a focus on reaching more customers and offering higher-end products. This strategy has paid off, as evidenced by the company's impressive financial results.
Nykaa's Q3 profit increased by a significant 61%, amounting to 233.2 million rupees, thanks to the demand for premium beauty products. This growth was further supported by the company's diverse revenue streams, including online sales, retail stores, B2B distribution, and its own "House of Nykaa" brands. In fact, Nykaa's beauty business generated a staggering ₹3,208 crore in GMV in FY2025.
The fashion segment also saw a 25% rise in GMV, reaching ₹964 crore. Notable brand additions like Swarovski and Victoria’s Secret have contributed to this growth. The company's strategic brand collaborations, such as the partnership with L'Oréal Paris, have also played a role in boosting its appeal.
Nykaa's growth is not limited to online sales. The company has been expanding its offline retail presence, with 250 stores across 82 cities as of Q1 FY2026. This strategy has helped the company deepen its market penetration beyond metros.
In addition to its growth strategies, Nykaa has been investing heavily in marketing. In FY2025, the company made marketing investments of ₹995 crore, focusing on regional and multilingual campaigns to boost customer acquisition, particularly in Tier 2 and Tier 3 cities.
The success of Nykaa's beauty and fashion businesses is not a surprise, given the performance of the skincare and cosmetics category. Despite a consumption slowdown in India, this category continues to outperform others. Indians have not shied away from spending on skincare and cosmetics, contributing to the $28-billion beauty and personal care industry in India.
Nykaa retails an array of brands both online and offline, including Estee Lauder and Katrina Kaif's Kay Beauty. The company's in-house brands, such as Dot & Key, Nykaa Cosmetics, and Kay Beauty (co-founded with actress Katrina Kaif), have also seen growth, with brands like Dot & Key doubling sales.
In summary, Nykaa's strategic focus on expanding its brand portfolio, marketing efforts, offline retail presence, and deepening market penetration beyond metros has fueled strong revenue growth in both its beauty and fashion businesses. The company's commitment to quality and customer reach is evident in its impressive financial results and continued growth.
Nykaa's impressive financial results demonstrate the success of their strategic focus on investment in marketing and expansion, both online and offline. This growth extends beyond their beauty segment, as evidenced by the 25% rise in GMV in their fashion segment. The company's foray into diverse business areas, such as finance through strategic brand collaborations and investment in their own "House of Nykaa" brands, also contributes to their overall performance.
