Nykaa Posts Rs 2,873 Cr Revenue in Q3 FY26; Profit Jumps 2.5X
•February 5, 2026
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Why It Matters
The sharp profit jump signals improving margins for Nykaa, enhancing its attractiveness to investors and reinforcing its leadership in India’s online beauty market.
Key Takeaways
- •Revenue hit Rs 2,873 cr, up 27% YoY.
- •Profit surged 2.5× to Rs 68 cr.
- •Beauty segment contributed 91% of revenue.
- •Operating costs rose to Rs 2,753 cr.
- •Stock trades at Rs 261.5, market cap $8 bn.
Pulse Analysis
Nykaa’s Q3 FY26 performance reflects the broader acceleration of India’s e‑commerce sector, especially in beauty and personal care. As consumers increasingly shift to online channels for cosmetics, the platform benefits from a deep product assortment and strong brand partnerships. This demand tailwind, combined with strategic investments in logistics and technology, has allowed Nykaa to capture a larger share of the market, translating into robust top‑line growth that outpaces many domestic peers.
From a financial perspective, the 2.5‑times profit increase stems from both scale and cost discipline. While material costs remain the largest expense, accounting for 57% of total outlays, the higher revenue base dilutes fixed overheads, improving gross margins. Marketing spend, a critical lever for customer acquisition, grew modestly, suggesting the firm is leveraging data‑driven campaigns rather than blanket promotions. The sequential profit rise of 101% further indicates that operational efficiencies are taking hold, positioning Nykaa for sustainable earnings expansion.
Looking ahead, Nykaa faces intensified competition from global beauty giants and emerging local platforms. To maintain its edge, the company may deepen its private label offerings, expand omnichannel capabilities, and explore strategic alliances in adjacent categories like health and wellness. Investors will watch inventory turnover and cash conversion cycles closely, as these metrics will reveal whether the current profit momentum can be sustained amid a rapidly evolving digital retail landscape.
Nykaa posts Rs 2,873 Cr revenue in Q3 FY26; profit jumps 2.5X
Online beauty and fashion platform Nykaa reported strong growth in Q3 FY26. Revenue from operations rose 27% year on year, while profit jumped 2.5X in the quarter ended December 2025.
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Online beauty and fashion platform Nykaa reported strong growth in Q3 FY26. Revenue from operations rose 27% year on year, while profit jumped 2.5X in the quarter ended December 2025.
According to its financial statements sourced from the National Stock Exchange (NSE), Nykaa's revenue from operations grew to Rs 2,873 crore in Q3 FY26, compared to Rs 2,267 crore in Q3 FY25.
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For the nine‑month period, Nykaa’s operating revenue increased 25% to Rs 7,374 crore from Rs 5,888 crore, a year earlier. The beauty segment accounted for 91% of the total revenue at Rs 2,622 crore, while the fashion segment contributed 8% of the operating income in the Q3 FY25.
For the Falguni Nayar‑led firm, the cost of materials constituted 57% of its total expenditure, rising to Rs 1,576 crore in Q3 FY26. Additional spending on employee benefits, finance, marketing, technology, and other overheads brought the company’s total costs to Rs 2,753 crore during the quarter.
Steady growth in its scale helped Nykaa achieve a 2.5X increase in profit to Rs 68 crore in Q3 FY26, compared to Rs 27 crore in Q3 FY25. On a sequential basis, the company’s profit increased 101% from Rs 33 crore in Q2 FY26.
At the close of today’s trading session, Nykaa's stock was priced at Rs 261.5, giving the firm a market cap of Rs 74,844 crore (approximately $8 billion).
Nykaa’s Q3 FY26 results show steady revenue growth and improving profitability. Higher scale helped absorb costs better, leading to a sharp rise in profit both year‑on‑year and sequentially. The continued dominance of the beauty segment provides stability to the business, while margins appear to be strengthening as the company grows. Overall, the numbers point to better operating efficiency as Nykaa expands.
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