Eternal and Nykaa's Q3 FY26 growth resurfaces as India retail heads toward Rs 215 trillion
Resurfacing a February 2026 update: India's retail market is projected to reach Rs 210–215 trillion by 2035, from Rs 90–95 trillion in 2025. Eternal reported Rs 16,315 crore in Q3 FY26 revenue, while Nykaa grew revenue 27% to Rs 2,873 crore and expanded its store and B2B networks.
What happened
Eternal (formerly Zomato) · India’s retail market could reach Rs 210-215 trillion by 2035. Eternal and Nykaa reported strong Q3 FY26 growth, with quick-commerce
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; net profit Rs 102 crore, up 102.9%
- Eternal added more than 200 net stores in Q3 FY26
- Nykaa Q3 FY26 revenue Rs 2,873 crore, up 27%; 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 in 1,100 cities
Why this matters
Eternal and Nykaa’s momentum makes beauty-tech, retailer-enablement, B2B distribution, last-mile logistics and omnichannel assets increasingly strategic targets or partnership candidates.
What to watch
- Eternal's quick-commerce GOV growth, contribution margin, dark-store additions, order frequency and adjusted EBITDA trajectory.
- Nykaa's GMV growth versus revenue growth, EBITDA margin, store productivity, B2B revenue mix, private-label share and repeat-purchase rates.
- Whether industry promotional intensity rises during festive and beauty-sale periods.
- Changes in rules affecting quick-commerce dark stores, delivery-worker protections, platform competition or e-commerce marketplace practices.
- Urban consumption indicators, discretionary beauty demand, inflation and last-mile delivery costs.
- Retail-media revenue growth and evidence that advertising offsets fulfillment and acquisition expenses.
- Eternal is likely to prioritize dark-store density, assortment expansion, loyalty integration and advertising/merchant-services monetisation over broad discounting.
- Nykaa is likely to add selective physical stores, deepen Nykaa Man and premium beauty, expand private-label penetration and use B2B distribution to reach smaller cities.
- Both companies are likely to invest further in retail media, AI-led personalization, demand forecasting and inventory allocation as customer-acquisition costs rise.
- Consumer brands will increasingly shift launch budgets toward platform-exclusive drops, quick-commerce packs and retail-media spending, reducing reliance on standalone digital advertising.
- Traditional retailers and D2C brands will accelerate omnichannel partnerships to access fulfillment, discovery and customer data rather than build national distribution independently.