Nykaa’s Q2 FY27 profit triples to Rs 101 crore on 28% revenue growth

By Amara Osei

Nykaa’s consolidated net profit surged over threefold to Rs 101 crore in the quarter ended September 2026, while revenue from operations rose 28% year on year to Rs 3,006 crore, according to the company’s consolidated financial statements filed with the National Stock Exchange (NSE). The filing showed revenue up from Rs 2,346 crore in Q2 FY26.

Total expenses rose 25% to Rs 2,867 crore from Rs 2,298 crore. The NSE filing linked the faster revenue growth and slower expense increase to stronger profitability.

What drove the profit increase?

The NSE filing showed revenue growing faster than total costs, and the results linked that spread to stronger profitability. Net profit reached Rs 101 crore from Rs 33 crore in Q2 FY26. The quarter therefore combined 28% revenue growth with 25% expense growth, producing a more-than-threefold rise in net profit.

Materials accounted for more than half of expenditure, making them the central cost line in the filing. The filing also disclosed employee benefits, depreciation, finance costs and overheads, including marketing and technology. Total spending across the reported cost lines rose 25%, below the 28% pace of operating revenue.

How did revenue split across segments?

Beauty supplied Rs 2,700 crore, or 90% of operating revenue, according to the NSE filing. Fashion generated Rs 287 crore, or 10%, while other segments contributed Rs 19 crore. The segment mix left beauty as the central source of quarterly sales.

The filing therefore described a business still dominated by beauty even as consolidated revenue expanded 28%. Beauty’s Rs 2,700 crore contribution remained the main driver of the group’s sales performance.

What shaped the expense line?

The cost of materials consumed remained the largest expense, accounting for 56.64% of total expenditure, according to the NSE filing. The line increased 25.7% to Rs 1,624 crore from Rs 1,292 crore in Q2 FY26. Its growth rate trailed the 28% increase in operating revenue.

Employee benefit expenses rose 20% to Rs 220 crore, while depreciation expenses increased 18% to Rs 93 crore. Finance costs declined 3% to Rs 30.52 crore, making them the only listed category to fall.

Other expenses, which include marketing, technology and other overheads, increased 26% to Rs 899 crore. Within operating costs, overheads grew faster than materials at 25.7%, employee benefits at 20% and depreciation at 18%.

The overall expense increase remained below revenue growth, which the results identified as a support for higher profitability. Total expenses reached Rs 2,867 crore, compared with Rs 2,298 crore in Q2 FY26.

What did the first half show?

The NSE filing showed H1 FY27 operating revenue increasing 28.6% to Rs 5,788 crore from Rs 4,501 crore in H1 FY26. Net profit surged 214.8% to Rs 181 crore during the first half, compared with Rs 57.5 crore in the corresponding period last fiscal year. Profit growth thus ran well ahead of top-line growth across the six-month period.

Q2 delivered the same broad pattern on a quarterly basis, with 28% revenue growth accompanying a more-than-threefold increase in net profit. The half-year figures reinforced that pattern, with both operating revenue and net profit higher year on year. Both periods paired higher revenue with a sharper increase in profit.

How did the market value Nykaa?

The report cited market data that put Nykaa shares at Rs 355.10 at the close of the trading session. That price gave the company a market capitalization of Rs 1,01,410 crore.

What matters next?

Nykaa’s next filing will test whether expense growth can remain below the 28% revenue growth recorded in Q2 FY27. Beauty remains central: the segment generated 90% of operating revenue in the quarter. The H1 FY27 profit gain of 214.8% makes that spread the central measure for the next reporting period.