India’s leading online beauty and fashion platform Nykaa closed the December quarter on a strong note, reporting solid revenue growth and a sharp improvement in profitability as scale and operating leverage kicked in.
For the quarter ended December 2025 (Q3 FY26), Nykaa’s revenue from operations rose 27 per cent year-on-year to ₹2,873 crore, up from ₹2,267 crore in the same period last year, according to financial statements filed with the National Stock Exchange.
The momentum extended beyond the quarter. Over the first nine months of FY26, Nykaa’s operating revenue climbed 25 per cent to ₹7,374 crore, compared with ₹5,888 crore in the year-ago period, reflecting consistent demand across its core categories.
The company’s beauty business continued to anchor growth, contributing nearly 91 per cent of total revenue, or ₹2,622 crore, during the quarter. The fashion segment, while still smaller, accounted for about 8 per cent of operating income, highlighting Nykaa’s gradual diversification beyond beauty.
On the cost front, materials accounted for the largest share of expenses. The cost of goods sold stood at ₹1,576 crore, making up around 57 per cent of total expenditure in Q3 FY26. Additional spending on employee benefits, marketing, technology, finance costs and other overheads took Nykaa’s total quarterly expenses to ₹2,753 crore.
Despite rising costs, the company’s expanding scale helped improve profitability. Nykaa reported a 2.5x jump in net profit to ₹68 crore in Q3 FY26, compared with ₹27 crore a year earlier. Sequentially, profit more than doubled from ₹33 crore in Q2 FY26, underscoring improving operating efficiency.
Founded by Falguni Nayar, Nykaa has steadily focused on balancing growth with profitability after years of heavy investment. The latest results suggest that strategy is beginning to pay off, with higher volumes helping absorb fixed costs more effectively.
In the stock market, investor sentiment remained stable. At the close of trading on Thursday, Nykaa’s shares ended at ₹261.5, valuing the company at around ₹74,844 crore, or roughly $8 billion.
Overall, Nykaa’s Q3 FY26 performance reflects steady top-line growth and strengthening margins. The continued dominance of its beauty segment provides a stable foundation, while improving profitability points to better cost control and operating leverage as the company scales. As Nykaa grows larger, its ability to convert revenue growth into profits will remain a key metric to watch.
