Key Financial Performance (Q1 FY27)
Consolidated Performance:
- Gross Merchandise Value (GMV): ₹5,590 crore (34% YoY growth)
- Net Revenue: ₹2,782 crore (29% YoY growth)
- Gross Profit: ₹1,276 crore (33% YoY growth)
- Gross Margin: 45.9%
- EBITDA: ₹236 crore (68% YoY growth)
- EBITDA Margin: 8.5% (200 bps improvement YoY)
- PAT: ₹80 crore (226% YoY growth)
- PAT Margin: 2.9%
- Return on Capital Employed (ROCE): 26.8% (annualized)
- Capital Employed: ₹2,211 crore
Vertical Performance:
Beauty Vertical:
- Net Sales Value (NSV): ₹2,371 crore (29% YoY growth)
- EBITDA: ₹244 crore (48% YoY growth)
- EBITDA Margin: 10.3% (130 bps improvement YoY)
Fashion Vertical:
- Net Sales Value (NSV): ₹451 crore (54% YoY growth)
- EBITDA Margin: 0.1% (achieved profitability from -14.1% in Q1 FY24)
House of Nykaa Brands:
- Annualized GMV: ₹3,760 crore (39% YoY growth)
- Annualized NSV: ₹2,200 crore (36% YoY growth)
- Cumulative Customers Served: 18 million
- Portfolio: 13 brands (7 in beauty, 6 in fashion)
- Beauty Brands NSV (Q1): ₹508 crore (40% YoY growth)
- Distribution: Nykaa Online (33%), Nykaa Stores (10%), B2B/Offline (19%), 3P/D2C (38%)
- Key Brands:
- Dot & Key: ₹1,300 crore annualized NSV
- Kay Beauty: ₹300 crore annualized NSV
- Nykaa Cosmetics: ₹270 crore annualized NSV
Superstore (B2B Distribution):
- NSV Growth: 28% YoY
- Registered Retailers: 523,000 (30% growth YoY)
- Geographic Coverage: 1,200+ cities
- Brands: 240+ brands (18 added in Q1)
- EBITDA Improvement: 300+ bps YoY
Strategic and Operational Highlights
Customer Metrics:
- Cumulative Customers: 60 million (33% YoY growth)
- Annual Unique Transacting Customers (Beauty): 20.8 million
- Annual Unique Transacting Customers (Fashion): 12 million
- Visits to Platform: ~0.5 billion (22% YoY growth)
Assortment Expansion:
- Brand Partners: 10,000+ (160 added in Q1)
- Key New Launches: Rare Beauty (Selena Gomez), K18 (Unilever), SK-II (P&G), Anua, Birkenstock, Debenhams, H&M Move
- Exclusive Partnerships: Nike (D2C platform operation and marketplace), Charlotte Tilbury, Kiehl's
Retail Expansion:
- Total Stores: 324 across 105+ cities (11 new stores added in Q1)
- Same-Store Sales Growth: Double-digit growth
- Tier 2+ Cities: 50% of stores
- New Formats: Kay Kafe, Nykaa Wanderlust Cart, Nykaa Kiosk
- Flagship Store: 5,000 sq ft ultra-luxe store in Vasant Kunj, Delhi
Nykaa Now (Quick Commerce):
- Cities: 13 (from 3 in Q1 FY26)
- Assortment: 1,000+ brands
- Delivery: Within 60 minutes
- Expansion Plan: 25+ cities by end-FY27
Technology & AI Initiatives:
- Virtual Closet (Fashion): Launched May 26, 2026; 200,000+ avatars created; 2x higher conversion
- Nynaa AI Voice Assistant: Resolves nearly 50% of customer calls
- Ask Nykaa: AI beauty advisor
- Superstore Tech: Automated WhatsApp ordering, predictive engine for field force
Marketing & Content:
- Creator Network: 170,000 creators (Nykaa NAP)
- Content Pieces: 2.3 million annually
- Social Media Followers: 19 million
- Events: L'Oreal Paris Cannes, Pink Summer Sale, Nykaa Birthday Sale, campus programs, makeup masterclasses
Capital Structure and Efficiency
- Fixed Asset Turnover: 10.7x (vs 9.9x in FY26)
- Working Capital Days: <30 days (vs 34 days in FY25)
- Capital Efficiency: Disciplined inventory and receivables optimization
Material Announcements
Acquisition of Aminu:
- Acquired 51% stake in premium dermocosmetic skin care brand Aminu
- FY26 Net Revenue: ₹19 crore
- Key Products: Longevity serum, eye serum, sleep oil
- Strategic Rationale: Fills premium skin care gap; strong R&D capabilities (30+ proprietary formulations); existing salon distribution network
- Future Acquisition: Remaining 49% to be acquired over next few years
Nike Partnership Details:
- Partnership Components:
1. Marketplace listing on Nykaa Fashion (standard arrangement)
2. End-to-end operation of Nike's D2C platforms (Nike.in and apps) including fulfillment
- Performance: Nike among top 3 brands on Nykaa Fashion; 1.5 million+ app installs for D2C platform
- Financial Arrangement: Retailer-like model with commission and service fees; Nykaa protected against inventory risk
Guidance and Outlook
- Superstore: Targeting 35%+ CAGR NSV growth by FY2030
- Fashion: Targeting 3-3.5x growth over 4-5 years
- Nykaa Now: Expand to 25+ cities by end-FY27
- No EBITDA dilution expected from Nykaa Now; viewed as accretive to customer LTV
Participants in Conference Call
Management:
- Ms. Falguni Nayar – Executive Chairperson, MD and CEO
- Mr. Anchit Nayar – Executive Director and CEO – Beauty
- Ms. Adwaita Nayar – Executive Director and Co-Founder and CEO of House of Nykaa Brands
- Mr. Vishal Gupta – CEO – Nykaa Distribution
- Mr. Abhijeet Dabas – CEO – Nykaa Fashion
- Mr. P. Ganesh – Chief Financial Officer
Analysts:
- Aditya Soman (CLSA)
- Videesha Sheth (Ambit Capital)
- Kapil Singh
- Swapnil Potdukhe (JM Financial)
- Sachin Salgaonkar (BofA Securities)
- Percy Panthaki (IIFL Securities)