NYKAANSENovember 12, 2025

FSN E-Commerce Ventures Limited

10,539words
60turns
8analyst exchanges
6executives
Management on call
Falguni Nayar
EXECUTIVE CHAIRPERSON, MANAGING DIRECTOR AND CHIEF EXECUTIVE
Anchit Nayar
EXECUTIVE DIRECTOR AND
Adwaita Nayar
EXECUTIVE DIRECTOR, CHIEF EXECUTIVE OFFICER, NYKAA FASHION AND HEAD OF
Vishal Gupta
CHIEF EXECUTIVE OFFICER,
Abhijeet Dabas
EXECUTIVE VICE PRESIDENT
P. Ganesh
CHIEF FINANCIAL OFFICER – FSN
Key numbers — 40 extracted
INR 4,744 crore
rting with our Q2FY26 performance snapshot. Just happy to say that the GMV for the quarter was at INR 4,744 crores, which is about 30% year-on-year growth. Also, please note that this is the highest year-on-year
30%
snapshot. Just happy to say that the GMV for the quarter was at INR 4,744 crores, which is about 30% year-on-year growth. Also, please note that this is the highest year-on-year growth in the last 6
INR 2,346 crore
to report a little bit of a growth momentum. On the net revenue basis also, the quarter ended at INR 2,346 crores of net revenue, which is a 25% year-on-year growth. Again, Nykaa has delivered consistent mid-20
25%
. On the net revenue basis also, the quarter ended at INR 2,346 crores of net revenue, which is a 25% year-on-year growth. Again, Nykaa has delivered consistent mid-20s growth since last 12 quarters,
rs,
25% year-on-year growth. Again, Nykaa has delivered consistent mid-20s growth since last 12 quarters, and this journey continues. On the gross profit side, happy to say that the gross profit has come
INR 1,054 crore
s journey continues. On the gross profit side, happy to say that the gross profit has come out at INR 1,054 crores, which is about 44.9% of net revenue and about 28% increase on a year-on-year basis. Again, simi
44.9%
profit side, happy to say that the gross profit has come out at INR 1,054 crores, which is about 44.9% of net revenue and about 28% increase on a year-on-year basis. Again, similarly, the highest gros
28%
the gross profit has come out at INR 1,054 crores, which is about 44.9% of net revenue and about 28% increase on a year-on-year basis. Again, similarly, the highest gross margin over the last 12 qua
INR 159 crore
e highest gross margin over the last 12 quarters. On the EBITDA front, the EBITDA has come out at INR 159 crores, which is 6.8% of net revenue, a 53% year-on-year increase and highest EBITDA margin since IPO.
6.8%
er the last 12 quarters. On the EBITDA front, the EBITDA has come out at INR 159 crores, which is 6.8% of net revenue, a 53% year-on-year increase and highest EBITDA margin since IPO. And also on the
53%
On the EBITDA front, the EBITDA has come out at INR 159 crores, which is 6.8% of net revenue, a 53% year-on-year increase and highest EBITDA margin since IPO. And also on the PAT, it's come out at
INR 33 crore
year-on-year increase and highest EBITDA margin since IPO. And also on the PAT, it's come out at INR 33 crores, which is about 1.4% of NR and 154% year-on-year growth. Next within this, the beauty growth has
Advertisement
Guidance — 14 items
Anchit Nayar
opening
“We have started to go to college campuses, where we are doing a lot of education and beauty bars and other fun engaging activities with college students, who we believe will be the next group of consumers as they get into the job, as they get into the workforce, their requirements on the beauty side will also increase.”
Anchit Nayar
opening
“So very much a truly omnichannel retail platform and really moving well, well beyond the top 10-15 cities now with us now, almost reaching our target of being in the top 100 cities in the near term.”
Adwaita Nayar
opening
“And I think next year onwards, we'll start scaling those up further.”
Adwaita Nayar
opening
“Clearly, it has strong product market fit, and we'll continue to accelerate and double down on this business continuing into next year as well.”
Vishal Gupta
opening
“So, there was some short- term transitory business loss due to retailer buying behaviour and postponing of retailer buying, but we are quite confident that the impact will be quite positive in the coming weeks and months in terms of offtakes, and therefore, overall retailer need for more stocks.”
Abhijeet Dabas
qa
“And with significantly better and continuously better intrinsics, I think that should continue to be the case going forward also.”
Falguni Nayar
qa
“Sorry, I think there will be confusion in such a mixed question.”
Kapil Singh
qa
“Can we expect the same trajectory this time as well?”
Falguni Nayar
qa
“Definitely for Beauty, we think our third quarter will be strong because of Nykaa, Pink Friday sale and also Nykaaland that’s happening now.”
Aditya Soman
qa
“And how, if there will be a difference in pricing between what's available in their stores and what's available online and a difference in assortment?”
Risks & concerns — 5 flagged
So the Internet connectivity might be a bit weak.
— Anchit Nayar
So we see this as incredibly powerful because we'll be able to make much more relevant recommendations and help the customer to make the right choices for themselves on the platform, which, of course, is in and of itself a fantastic outcome for us, but it also has the impact of improving conversion on the platform and also driving further penetration of new categories and new products through the personalized experience, which we're now able to provide the customer.
— Anchit Nayar
Within that, I think in fashion, own brands, clearly, there was a little bit of a drag over the last couple of quarters.
— Falguni Nayar
I think you're asking about deflationary impact of GST.
— Falguni Nayar
No, what I was trying to understand is, is there a longer-term impact of this on the growth of particularly any of these businesses or not really, particularly fashion business, for example, do you see any impact?
— Kapil Singh
Advertisement
Q&A — 8 exchanges
Q
Congrats on a great set of results again. My first question was on Fashion. So, on Fashion side, basically, when we were doing Investor Day, it was tough to envisage such a recovery in terms of top line as well as improvement in the losses that we are delivering on. So, congratulations, first of all. Secondly, the question being, first is how sustainable is this trajectory, both on bottom line and top line? And on the same piece, how much of the delivery that we have seen in H1, will you give credit to Nykaa specific or Nykaa Fashion-specific initiatives that the company has taken? Or if there
Abhijeet Dabas
Thanks for the question. On the first part, like I said, I think we look at the intrinsics of the business from our side and try to keep improving the underlying intrinsics which determine the success of the business or not. And for a marketplace business, I think the core is the assortment that we have and the user funnel that we have. Are we able to add the right assortment? Are we able to work with brand partners to deliver growth both for them as well as for us? And then are we able to attract the right quality of customers and provide them an experience with which they decide to come back
Q
So, thanks for the opportunity and congratulations on a very good performance for the quarter. This quarter had a couple of disruptions or I would say, on account of GST, firstly, we saw there were certain changes. So, I would like you to just call out the impact across businesses that you see on account of the GST changes, if at all. Second is that the festive season came in a bit earlier. So just your thoughts if that had any significant impact on the performance for the quarter. And then secondly, just on the operating leverage for your beauty business, we see that fulfilment costs, marketi
Falguni Nayar
Sorry, I think there will be confusion in such a mixed question. So, I think I'll take some parts of it. I think from the operating leverage perspective, you are seeing a fair amount of operating leverage come in on both beauty as well as fashion vertical. I think on Beauty, clearly, there are, beauty vertical is a mix of combination of omnichannel beauty business along with our owned beauty brands, which are now contributing a reasonable amount and eB2B business. So, there is also a mix impact. But overall trend that each of the businesses are increasing their EBITDA margins and working on a
Q
So, two questions. Firstly, you indicated that Kay Beauty has done well overseas in London, you indicated that. So, can you explain a little bit more about the opportunity for Nykaa owned brands overseas and how you're looking to expand that? And second question on the sort of arrangement with H&M, will this also include sort of sales in physical stores or it's purely a sort of online arrangement? And how, if there will be a difference in pricing between what's available in their stores and what's available online and a difference in assortment?
Adwaita Nayar
Alright. So, I'll comment first on the U.K. opportunity. So, we're definitely going to double down on the U.K. and within that the Space NK partnership. And I feel that every geography requires a lot of attention and focus and bringing the right level of passion and energy to build that brand in that region. So, I think while the response has shown us that there is a lot of potential internationally for Kay and possibly even for a couple of our other brands, we'll sort of be doing it in a measured manner and picking geographies one by one and picking the right retailer partners within it, rath
Q
Thank you for the opportunity. I have just one question. Could you give a broad sense of what is fragrance now in your overall mix? And I see that you've added 19 stores in 2Q. This is in the beauty side faster than you've done in the last few quarters and 8 new cities as well. So, I'm just wondering, specifically on the fragrance side, is that sizable enough of a category in its own right for you, especially also on the store expansion plan side? Yes, that's my question.
Anchit Nayar
Yes. So, fragrance, and I think I mentioned in the past is one of our fastest-growing categories consistently every quarter. globally, you're seeing fragrance as being the category which Gen Z is really, really adopting. And you're seeing the same thing in India. So, I think fragrance is going to be a big driver of growth for beauty globally as well as in India and same applies to us. So, we are focused on it. In the past, we've spoken with you about all the initiatives we're taking around building awareness and driving education for fragrance usage amongst consumers in India, which historical
Q
Hi, guys. Am I audible.
Management
Q
So, I just had two questions, both on fashion. The first one was if you look at the new brands that you also onboarded, as well as with H&M coming in, just wanted to know whether you expect a little bit of an AOV dilution going forward. First half has seen very strong AOV growth also in the fashion business in mid-single-digit. So, the kind of brands you're onboarding, as well as with H&M coming in, do you expect a little bit of AOV dilution going forward as well on the fashion business? That's my first question. And the second one was, again on fashion. So, the first half has seen exceptional
Management
So, on the first one, we don't see a dilution of AOV per se. It could be a little bit here or there. But generally speaking, for the same brand, which is live on Nykaa, as well as on other platforms, the AOV for the same brand is also consistently higher on Nykaa, because the day and age that we live in is one where the same consumer has access to multiple apps, but it's different kinds of use cases, which bring customers to different apps. Nykaa Fashion is positioned as a slightly more premium platform. It's a platform where customers come in to buy more high fashion product. And that has con
Q
Hi. Just a quick question regarding the spend by brands in terms of advertisement on quarter- on-quarter basis, are we seeing increase in that on the platform?
Anchit Nayar
So, maybe I'll kick it off with beauty. So, I think the short answer is yes, there has been, I think a couple of things have happened. One is, as I've spoken to you in the past about is a lot of investments, we've made towards creating more advertising opportunities for brand partners. So now we've got ability for brands to advertise across the funnel, so not just top of funnel, but even mid and lower funnel through PLAs and in-line widgets and other in-line banners and other such opportunities for advertising. So just creating a lot more real estate. Second is we've also started to personaliz
Q
Thank you, everyone, for being on the call with us. And I hope we've answered all the questions and do get in touch with us if there are any clarifications needed. With that, have a good evening and thank you for being with us again today.
Management
Speaking time
Moderator
11
Falguni Nayar
7
Anchit Nayar
7
Aditya Soman
6
Adwaita Nayar
5
Abhijeet Dabas
5
Kapil Singh
5
Sachin Dixit
4
P Ganesh
2
Vijit Jain
2
Advertisement
Opening remarks
Falguni Nayar
Thank you very much for being on the call with us today. As you are aware, Nykaa just finished the Board meeting and have reported our results to the exchange, and it's a delight to present these to you today. So starting with our Q2FY26 performance snapshot. Just happy to say that the GMV for the quarter was at INR 4,744 crores, which is about 30% year-on-year growth. Also, please note that this is the highest year-on-year growth in the last 6 quarters. So happy to report a little bit of a growth momentum. On the net revenue basis also, the quarter ended at INR 2,346 crores of net revenue, which is a 25% year-on-year growth. Again, Nykaa has delivered consistent mid-20s growth since last 12 quarters, and this journey continues. On the gross profit side, happy to say that the gross profit has come out at INR 1,054 crores, which is about 44.9% of net revenue and about 28% increase on a year-on-year basis. Again, similarly, the highest gross margin over the last 12 quarters. On the EBITD
Anchit Nayar
Okay. Great. And I hope I'm audible. We are traveling on the road. So the Internet connectivity might be a bit weak. So please moderator, let me know in case I'm a bit choppy. So in terms of , as was mentioned earlier, Nykaa Beauty has had another good quarter of growth, delivering 28% growth on GMV and in absolute terms, the highest GMV we've delivered in the last multiple quarters. So a very strong quarter in what is seasonally not the strongest period of the year. A lot of this is driven by the continued focus Nykaa Beauty showing on penetration in terms of annual unique transacting customer acquisition and growth as well as certain premiumization initiatives that are playing out nicely. Next slide, please. I've said before, Nykaa's dual objectives are that of penetration and premiumization. On the penetration front, we continue to make investments that are paying off. We believe that India has some of the lowest penetration of beauty consumption in the world and investment needs to
Adwaita Nayar
Hi, everyone. It's great to be here today and get to present this section. Speaking about the House of Nykaa, we've spoken about this before. Nykaa is transitioning from being just a retailer to also being a brands business and having this House of Brands. We've been working on this strategy in a very concerted manner over the last couple of years. And today, this House of Nykaa business has reached INR 2,900 crores of annualized GMV run rate. It's growing very well at 54% year-on-year. We're building about 10 brands. I would say four of them are sort of established and have had breakthrough velocity, and we'll double click on those. I would say another handful, three, four are emerging. There is good product market fit. And I think next year onwards, we'll start scaling those up further. And then there are a couple which are still being incubated. Moving on. Within that INR 2,900 crores GMV, 75%+ comes from our beauty brands. And on this slide, you can see that in Q2, our beauty brand
Vishal Gupta
Thanks, Adwaita. Good afternoon, everyone. I'm happy to report that we continue on our path to profitable scale. And even in this quarter, we have grown our transacting retailers by 41%, adding 1 lakh new retailers over last year with 42% year-on-year order growth. Our GMV was slightly lower at 25% growth. That was mostly on account of, as you all know, there were GST changes and 40% of our portfolio had GST cut to 5%. So, there was some short- term transitory business loss due to retailer buying behaviour and postponing of retailer buying, but we are quite confident that the impact will be quite positive in the coming weeks and months in terms of offtakes, and therefore, overall retailer need for more stocks. So, we'll get back to that growth, but our expansion continues at a good pace. And our scale and reach is very exciting to our brand partners, and you can see that we have all kinds of great brands, whether national, regional or D2C brands, and we continue to add brands. Like rec
Abhijeet Dabas
Thanks, Vishal. So again, very happy to be here with you all today and also very happy to continue to share the upward trajectory that the fashion business is on over the last few quarters. As Falguni ma'am covered a little while ago, this has been a strong quarter for the fashion business. We clocked 37% growth in GMV year-on-year. Also, for fashion, similar to beauty, the GMV that we clocked for this quarter was the highest ever GMV in a quarter which is typically not the highest for the business during the year, INR 1,180 crores and a 37% growth. Equally significantly, we saw a massive improvement in EBITDA, 550 basis points improvement in EBITDA from minus 9.0% to minus 3.5%. And we believe that with the structural changes, structural interventions that we have made in the business over the last year or so, we are well on our path towards profitability. Next slide. Underlying the business improvement has been a much healthier customer funnel, right from how many customers we are ac
P. Ganesh
Thank you, Abhijeet. Good evening, everyone. I'll now share a detailed overview of our quarterly performance. So, as you have seen in the earlier sections, Nykaa has had a good quarter 2 performance and has been consistently delivering strong top line growth for the last many quarters while improving its profitability too. Our revenue from operations grew by 25% during the quarter to INR 2,346 crores, sustaining our momentum of delivering mid-20s growth consistently for several quarters with both our business verticals outperforming the industry during the quarter. Profitability also saw a meaningful improvement with our EBITDA margin in quarter 2 at 6.8%, an improvement of 125 basis points, driven by strong focus on driving efficiencies across the P&L. I would like to highlight that in quarter 2, we have achieved the highest profitability margin since our IPO. Our PAT grew 154% Y-o-Y, which is 6x of revenue Y-o-Y growth and 3x EBITDA Y-o-Y growth, delivering a 1.4% PAT margin during t
Advertisement
← All transcriptsNYKAA stock page →