Nykaa Q1 profit more than triples as EBITDA margin reaches 8.5%

Nykaa reported Q1 revenue of Rs 2,782 crore, up 29% year on year, while net profit rose to Rs 79.76 crore from Rs 24.47 crore. EBITDA grew 68% to Rs 236 crore and margin expanded 200 basis points to 8.5%, following a strong stock rally.

— Source publishedWed, 2 Sept, 2026, 15:44 IST·First seen Wed, 2 Sept, 2026, 16:07 IST·Source Business Today · Latest

What happened

Nykaa posted sharply improved quarterly profitability, revenue and EBITDA margins, supporting investor confidence. An analyst expects the stock to consolidate

Key facts

  • Q1 profit Rs 79.76 crore, versus Rs 24.47 crore year earlier
  • Previous-quarter profit Rs 78 crore
  • Gross profit Rs 1,276 crore, up 33% YoY
  • EBITDA Rs 236 crore, up 68% YoY
  • EBITDA margin 8.5%, versus 6.5%
  • Revenue Rs 2,782 crore, up 29% YoY, versus Rs 2,155 crore
  • Stock up 25% in three months and 45% in one year
  • Stock rose from about Rs 140 to Rs 340
  • Suggested trading range Rs 300-Rs 350
  • Potential re-entry range Rs 280-Rs 300
  • Long-term target near Rs 420

Why this matters

Nykaa’s stronger profitability and scaled Rs 2,782 crore quarterly revenue reinforce its position as a well-capitalized consolidator in India’s beauty and fashion ecosystem.

What to watch

  • Whether Q2 revenue growth remains near or above the 29% Q1 pace.
  • EBITDA margin sustainability above 8%, particularly through festive-season promotions.
  • Fashion segment growth, contribution margin and inventory markdown levels.
  • Competitive discounting, exclusive-brand launches and rapid-delivery beauty offerings from Tira, Myntra, Amazon and quick-commerce players.
  • Repeat purchase trends, active-customer growth, average order value and offline-store productivity.
  • Any increase in marketing expense or fulfillment costs that reverses operating leverage.
  • Increase selective investments in Nykaa Fashion, premium beauty, owned brands and high-repeat customer cohorts.
  • Use improved cash generation to expand offline stores and omnichannel fulfillment in high-density cities.
  • Negotiate stronger terms with beauty brands and suppliers as scale, sell-through data and full-price demand improve.
  • Emphasize EBITDA-margin progress in investor communication while guiding cautiously on the pace of further expansion.