Eternal and Nykaa report sharp Q3 FY26 growth alongside retail expansion
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 and net profit grew 156%. Nykaa added 11 stores to reach 276 across 94 cities as it expands rapid delivery, premium beauty and B2B distribution.
What happened
Eternal (formerly Zomato) · India’s retail market is projected to reach Rs 210-215 trillion by 2035. Eternal posted rapid Q3 FY26 growth and expanded
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%
- Eternal added over 200 net stores
- Nykaa Q3 FY26 revenue Rs 2,873 crore, up 27% YoY
- 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 in 94 cities
- Nykaa B2B platform serves over 4.8 lakh retailers across 1,100 cities
Why this matters
Nykaa’s expansion to 276 stores across 94 cities, alongside premium beauty, rapid delivery and B2B distribution investments, highlights potential partnership and acquisition opportunities in omnichannel fulfillment and specialty retail.
What to watch
- Nykaa same-store sales growth, retail EBITDA margin and inventory days after the 11-store addition.
- Rapid-delivery order frequency, fulfillment economics and whether service expansion is funded through higher discounts.
- Premium beauty gross-margin trends and the mix of owned, exclusive and third-party brands.
- B2B distribution revenue growth, receivables and working-capital requirements.
- Eternal's quick-commerce losses or contribution-margin trajectory, which will indicate the intensity of retail-tech competition.
- Consumer discretionary demand in metro and tier-2 cities, especially premium beauty conversion and average order values.
- Nykaa is likely to prioritize cluster-based store openings in high-income urban catchments, with premium beauty and omnichannel fulfillment as key formats.
- The company may expand rapid-delivery assortment and delivery coverage, using stores and localized inventory to shorten fulfillment times.
- More beauty brands may seek exclusive launches, shop-in-shops and B2B partnerships with Nykaa as its physical and distribution footprint widens.
- Eternal is likely to keep funding quick-commerce capacity, increasing competitive pressure on categories that overlap with beauty, personal care and everyday wellness.