Nykaa triples quarterly profit as beauty boom drives growth

Indian beauty retailer Nykaa reported a more than threefold jump in quarterly profit, powered by strong makeup demand, premium brand partnerships, and expanding offline stores that reflect the country’s growing love for beauty and skincare products.

Indian beauty and lifestyle giant Nykaa has posted an impressive surge in profits, highlighting the growing strength of India’s beauty industry.

The company announced that its net profit for the quarter ended September 30 rose to 344.4 million rupees ($3.9 million), more than triple the 100.4 million rupees reported a year earlier.

The results underline Nykaa’s successful strategy of focusing on its core beauty business while broadening its reach through global collaborations and a stronger retail presence.

The company, officially known as FSN E-Commerce Ventures, has become India’s leading beauty and fashion marketplace. It achieved remarkable growth by targeting diverse consumer segments, blending luxury and affordability, and expanding both online and offline.

Despite a broader consumption slowdown in India, Nykaa’s results show that consumers continue to spend on self-care, makeup, and skincare products — a trend driven by rising disposable incomes and the influence of digital beauty culture.

Nykaa’s revenue from its beauty and personal care segment climbed 25% year-on-year to 21.32 billion rupees, buoyed by the inclusion of premium global brands such as Chanel, Aesura from Korea, and sunscreen specialist Supergoop.

The company also strengthened its exclusive collaborations with celebrity-backed lines like Katrina Kaif’s Kay Beauty and Rihanna’s Fenty Beauty, enhancing its product diversity and appeal among younger audiences.

The retailer’s overall revenue rose 25% to 23.56 billion rupees, supported by growth in both its beauty and fashion verticals. The fashion segment, which includes apparel and accessories from brands such as Victoria’s Secret and Titan’s Mia, recorded a 21% increase in sales, signaling Nykaa’s steady progress in becoming a comprehensive lifestyle platform.

During the quarter, Nykaa expanded its physical footprint by opening 19 new beauty stores, bringing its total to 265 across India.

This move reflects the brand’s hybrid retail strategy, which combines the convenience of e-commerce with the personalized experience of in-store shopping. Analysts note that this omnichannel approach has been key to building consumer trust and increasing repeat purchases.

The company’s gross margins also improved, rising to 44.9% from 43.8% a year earlier. This margin expansion came from a strategic focus on premium offerings, efficient inventory management, and an enhanced product mix tailored to consumer demand for higher-quality skincare and makeup.

Industry experts view Nykaa’s results as a strong indicator of the resilience of India’s $28-billion beauty and personal care market, which continues to outpace other consumer sectors.

As international brands increasingly see India as a key growth market, Nykaa’s ability to bridge global and local demand gives it a competitive edge.

Nykaa’s founder and CEO Falguni Nayar has emphasized sustainable growth and innovation as the company’s guiding principles. Under her leadership, Nykaa has expanded beyond cosmetics into wellness, fragrance, and men’s grooming while integrating advanced AI-driven personalization tools to enhance the shopping experience.

The brand’s focus on regional markets and Tier-II and Tier-III cities has also been instrumental in its growth. With rising internet penetration and social media influence, smaller towns are becoming the new frontier for beauty and fashion consumption in India.

Nykaa’s localized marketing campaigns and vernacular content have helped it connect with these consumers effectively.

Looking ahead, Nykaa plans to continue investing in technology, logistics, and supply-chain efficiency to strengthen its delivery network and support its expanding customer base.

The company is also expected to introduce new homegrown product lines, tapping into trends like clean beauty, vegan formulations, and dermatologist-backed skincare solutions.

The strong quarterly performance reflects more than just a financial rebound — it highlights how the Indian beauty ecosystem is evolving rapidly.

From celebrity collaborations to homegrown innovation, Nykaa is at the center of this transformation, representing both aspiration and accessibility for modern Indian consumers.