Eternal and Nykaa pair digital growth with wider physical retail in Q3 FY26
Eternal reported Q3 FY26 revenue of Rs 16,315 crore, up 201.9% year on year, while Nykaa’s revenue rose 27% to Rs 2,873 crore. Both are widening their retail footprint: Eternal added 200+ net stores and Nykaa reached 276 stores across 94 cities.
What happened
Eternal (formerly Zomato) · Eternal and Nykaa reported strong Q3 FY26 growth as India’s retail market shifts toward discovery, platform and logistics
Key facts
- India retail market projected at Rs 210-215 trillion by 2035, versus Rs 90-95 trillion in 2025
- Eternal Q3 FY26 revenue: Rs 16,315 crore, up 201.9% YoY
- Eternal Q3 FY26 net profit: Rs 102 crore, up 102.9% YoY
- Eternal added over 200 net stores
- Eternal contribution margin expanded about 90 bps; EBITDA margin improved about 130 bps sequentially
- Nykaa Q3 FY26 revenue: Rs 2,873 crore, up 27%
- Nykaa Q3 FY26 net profit: Rs 68 crore, up 156%
- Nykaa gross margin: 45.2%; EBITDA margin: 8.0%
- Nykaa added 11 stores, reaching 276 stores across 94 cities
- Nykaa B2B platform serves over 4.8 lakh retailers across 1,100 cities
Why this matters
The shift toward integrated digital, physical, private-label and B2B models raises the strategic value of acquisitions and partnerships that add local distribution, store networks or category expertise.
What to watch
- Same-store sales growth versus net store additions and new-store payback periods.
- Store-level EBITDA, rent-to-sales ratios and inventory turns as footprints widen.
- Share of orders fulfilled from stores or local nodes, along with delivery cost per order and repeat-purchase rates.
- Growth in owned-brand mix, gross margin and exclusive-brand launches at Nykaa.
- Advertising, B2B distribution and seller-services revenue growth relative to core retail revenue.
- Evidence that quick-commerce expansion cannibalizes rather than complements store traffic and higher-margin baskets.
- Store rollout mix: company-owned versus franchise/partner-operated locations and expansion beyond the top 100 cities.
- Eternal is likely to use its expanded physical network as hyperlocal fulfillment capacity, linking food, quick commerce and adjacent retail demand where unit economics support dense delivery zones.
- Nykaa is likely to prioritize experiential and high-conversion store formats in top cities, using beauty consultations, exclusives and owned brands to defend margins against online discounting.
- Both companies will increase CRM and loyalty integration so online browsing, store visits, returns and replenishment create a single customer profile.
- Brand partners will face stronger pressure to fund platform advertising, exclusive launches, local inventory and omnichannel promotions in exchange for visibility and distribution.
- Smaller specialty retailers may respond through franchise partnerships, marketplace selling and quick-commerce tie-ups rather than independently funding national omnichannel capabilities.