Nykaa Fashion turns EBITDA positive as fashion sales grow 42% in Q2
By Simran KaurFashion Writer, Peepals Shakti
Representative image: analogicus / Pixabay
Nykaa's fashion arm posted positive EBITDA of about Rs 1 crore in July-September 2026 as its sales grew 42%, the company said on 4 November 2026.
What Happened
The fashion business of Nykaa, the beauty and fashion retailer, made an operating profit in the July to September 2026 quarter, according to results published on Wednesday, 4 November 2026. Nykaa Fashion reported positive EBITDA (earnings before interest, tax, depreciation and amortisation) of about Rs 1 crore, a 0.2% margin, against a loss a year earlier, as the value of fashion goods sold on its platforms (gross merchandise value, or GMV) rose 42% to Rs 1,674 crore. For the whole company, consolidated net profit nearly tripled to about Rs 101 crore and revenue from operations rose 28% to Rs 3,006 crore.
Key Facts
- Fashion GMV: Rs 1,674 crore in Q2 FY27, up 42% year on year.
- Fashion EBITDA: about Rs 1 crore (0.2% margin), compared with a loss a year earlier, according to the company's results presentation.
- Beauty GMV: Rs 4,454 crore, up 25% year on year.
- Company net profit: Rs 101.19 crore, against Rs 32.98 crore a year earlier.
- Revenue from operations: Rs 3,006.04 crore, up 28%.
- Leadership: Falguni Nayar is executive chairperson, managing director and chief executive of the company; Adwaita Nayar leads Nykaa Fashion as its chief executive, according to company documents.
- Earlier quarter: in April-June 2026, the fashion business was roughly at break-even, with a 0.1% EBITDA margin.
Why It Matters
Nykaa built its name in beauty and then expanded into fashion, and the company had set itself a target of bringing the fashion business to EBITDA break-even. Moving from a loss a year ago, to roughly break-even in the June quarter, to a small profit in the September quarter shows the business beginning to pay its own way, even if the margin is thin.
The numbers also show where growth is coming from. Fashion GMV grew 42%, much faster than beauty's 25%. That means fashion is becoming a larger share of the group, and its profitability matters more to the company's overall results than before.
The story is also about women leading a large consumer business. Nykaa is led by Falguni Nayar, and its fashion arm by Adwaita Nayar. The fashion turnaround is a result for a strategy set by women at the top of a listed Indian retailer.
A margin of 0.2% is very thin, and one quarter does not make a trend. The festive season, which falls in the October-December quarter, will show whether the business can stay profitable at higher volumes and with heavier discounts.
Peepals calculation: fashion made up about 27% of Nykaa's consolidated GMV in the quarter (1,674 / 6,151 crore, using the reported consolidated GMV of Rs 6,151 crore). Group net profit rose about 3.1 times (101.19 / 32.98 = 3.07), which is the reported 207% increase. Fashion GMV grew 17 percentage points faster than beauty GMV (42% against 25%). Our calculation from the reported figures.
| Measure (Q2 FY27) | Figure | Change |
|---|---|---|
| Fashion GMV | Rs 1,674 crore | up 42% |
| Beauty GMV | Rs 4,454 crore | up 25% |
| Fashion EBITDA | about Rs 1 crore (0.2%) | from a loss |
| Group net profit | Rs 101.19 crore | up about 207% |
Impact
Short-term: the fashion business no longer drags on group profits, and the October-December festive quarter will test whether it can stay positive.
Long-term: a profitable fashion arm would give Nykaa two earning businesses instead of one, and strengthen its position against larger online fashion rivals.
Who is affected: Nykaa's customers, the Indian and international fashion brands sold on its platforms, its employees and shareholders, and rivals in online fashion.
Key Takeaway
Nykaa Fashion, led by Adwaita Nayar, made a small operating profit of about Rs 1 crore in July-September 2026 as its sales grew 42%, while the group's net profit nearly tripled to about Rs 101 crore.
Questions and Answers
Is Nykaa Fashion profitable now?
At the operating level, yes for this quarter: Nykaa Fashion reported positive EBITDA of about Rs 1 crore, a 0.2% margin, in July-September 2026, compared with a loss a year earlier.
How fast did Nykaa's fashion business grow?
Fashion GMV rose 42% year on year to Rs 1,674 crore in the September quarter, faster than beauty's 25% growth.
What were Nykaa's Q2 FY27 results?
Consolidated net profit was Rs 101.19 crore against Rs 32.98 crore a year earlier, and revenue from operations rose 28% to Rs 3,006.04 crore.
Who runs Nykaa Fashion?
Adwaita Nayar is chief executive of Nykaa Fashion. Falguni Nayar is executive chairperson, managing director and chief executive of the company.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Simran Kaur, Fashion WriterCovers Fashion and more for Peepals Shakti. All stories by Simran Kaur
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Simran Kaur is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
