Nykaa Q2 FY26: GMV ₹4,744 Cr, Revenue ₹2,346 Cr

What Nykaa reported for Q2 FY26

FSN E-Commerce Ventures Ltd (Nykaa) reported strong momentum in Q2 FY26, with consolidated gross merchandise value (GMV) at ₹4,744 crore, up 30% year-on-year (YoY). The company said this was the highest YoY growth in the last six quarters. Consolidated net revenue stood at ₹2,346 crore, up 25% YoY. Gross profit was reported at ₹1,054 crore, which the company said was 44.9% of net revenue, and up 28% YoY.

Nykaa also attributed performance to structural improvements, including changes to assortment and the customer funnel. It described the market environment as supportive while stating it is outpacing industry growth. The company indicated it is optimistic about continued momentum, citing improved business fundamentals.

Key profitability indicator: gross profit and margin

A key datapoint for Q2 FY26 was the gross profit line. Gross profit of ₹1,054 crore on net revenue of ₹2,346 crore implies a gross margin of 44.9%, as stated by the company. The YoY gross profit growth of 28% outpaced net revenue growth of 25%, indicating operating scale with margin stability at the gross level.

While the update does not provide EBITDA or net profit numbers, the reported gross profit share of revenue is relevant for tracking the underlying unit economics of Nykaa’s platform-led model. Management commentary in the provided text focuses on improvements in conversion funnel and assortment, which typically influence repeat rates and contribution margins, but the release only quantifies gross profit for this quarter.

Fashion revival in Q2: GMV rises to ₹1,180 crore

Nykaa highlighted a sharper acceleration in its Fashion business during Q2 FY26. It reported Fashion GMV growth of 37% YoY, and said the Fashion GMV reached ₹1,180 crore in Q2 FY26. The company linked the performance to the introduction of “globally trending brands” during the year, naming GAP, Guess, and H&M.

In the text provided, Nykaa positioned this as a continuation of the rebound seen in the previous quarter. The Q2 print suggests Fashion contributed meaningfully to overall GMV growth, alongside continued strength in Beauty.

Q1 FY26 provisional update: growth in the mid-twenties

For Q1 FY26, Nykaa had earlier indicated that consolidated net revenue growth was expected to be at the lower end of the mid-twenties YoY range, with GMV growth expected to cross the mid-twenties. The company stated that Beauty vertical GMV growth was expected to be in the higher end of the mid-twenties, while Beauty net revenue growth was expected in the mid-twenties YoY.

Nykaa also flagged disruption during Q1, citing geo-political tensions that led to softer sentiment during the quarter’s Flagship Sale, causing some loss of business. Despite this, it said growth was supported by performance across its ecommerce platform, retail stores, eB2B distribution, and House of Nykaa brands.

Q1 FY26 segment direction: Beauty steady, Fashion improving

On Fashion for Q1 FY26, Nykaa said GMV growth was expected to be in the mid-twenties YoY, marking improvement over prior quarters. Drivers cited included improving traction on the core platform, expanding assortment, and robust customer acquisition. However, it also said Fashion net revenue growth was expected to improve sequentially to the mid-teens YoY, remaining below GMV growth.

Separately, the text also includes management-style commentary referencing Q1 metrics: consolidated GMV of ₹4,182 crore with 26% YoY growth, net revenue of ₹2,155 crore with 23% YoY growth, Beauty GMV of ₹3,208 crore (26% YoY), and Fashion GMV of ₹964 crore (25% YoY). Fashion NSV growth was noted as 20% YoY in that commentary.

What brokerages expected for Q1 FY26

Brokerage expectations in the text point to mid-20% growth for Nykaa’s Q1 FY26, with different assumptions on segment mix.

• Average estimate cited: Q1FY26 revenue expected to rise 24.6% YoY to ₹2,177.08 crore, versus ₹1,746.1 crore a year ago, and 5.6% QoQ versus ₹2,061.8 crore in Q4FY25.
• Kotak Institutional Equities expected overall GMV and revenue growth of 24% and 26% YoY, driven by Beauty and Personal Care (BPC) GMV and revenue growth of 25% and 18% YoY, and Fashion GMV and revenue growth of 20% and 19% YoY.
• ICICI Securities estimated Beauty revenue to grow 3.8% QoQ and 23.5% YoY to ₹1,970 crore, and Fashion revenue to grow 7.1% QoQ and 16.1% YoY to ₹170 crore in Q1FY26.
• Elara Capital expected revenue growth of 25.3% to ₹2,188.5 crore, led by BPC GMV growth of 28% YoY. It also flagged a Fashion acceleration scenario with 27% YoY GMV growth and a 47 bps rise in take rate to 16% in Q1.

Summary table: reported and expected figures (₹ crore)

Market impact: what the numbers signal

The step-up to 30% YoY GMV growth in Q2 FY26, alongside 25% YoY net revenue growth, indicates stronger conversion and/or monetisation when compared with periods where Fashion revenue growth lagged GMV growth. The 44.9% gross margin is a central indicator for investors tracking the sustainability of growth, especially as Nykaa expands assortment and pushes customer acquisition.

The text also frames competitive positioning: Nykaa said it is outpacing broader industry growth, and brokerages broadly modelled growth in the mid-20% band for Q1 FY26. For the Fashion segment, the move to 37% YoY GMV growth in Q2 FY26 stands out against earlier commentary that Fashion revenue growth could sit in the mid-teens in Q1 FY26, pointing to an improvement in demand and catalogue strength.

Analysis: why Q2 FY26 matters for Nykaa’s trajectory

Two themes stand out in the provided information. First is the company’s emphasis on “structural improvements” in assortment and the customer funnel, which it links to sustainable growth. This is relevant because funnel and assortment changes can affect both GMV growth and gross profit efficiency, and Q2 showed gross profit growing faster than net revenue.

Second is the renewed focus on Fashion. The company’s Q2 update explicitly ties Fashion growth to branded additions such as GAP, Guess and H&M, and reports Fashion GMV at ₹1,180 crore. Combined with earlier commentary that the Fashion business plans to reach EBITDA breakeven by FY26, the segment’s growth rate is likely to remain a key monitorable, even though the current text does not provide profitability metrics for Fashion.

Conclusion

Nykaa’s Q2 FY26 update reported ₹4,744 crore GMV (+30% YoY), ₹2,346 crore net revenue (+25% YoY), and ₹1,054 crore gross profit (44.9% margin, +28% YoY), alongside a sharp 37% YoY GMV rise in Fashion to ₹1,180 crore. Earlier Q1 FY26 commentary and brokerage estimates clustered around mid-20% consolidated growth, with Beauty steady and Fashion improving but with a gap between GMV and revenue growth in the earlier quarter. The next set of detailed quarterly disclosures will be important for tracking whether the Q2 growth pace and gross margin levels hold, and how quickly Fashion progresses toward the stated FY26 breakeven objective.