Markets India

Nykaa's profit after tax (PAT) surged 207% YoY to Rs 101 crore in Q2 FY27, driven by robust revenue growth and strategic acquisitions, including an 82% stake in Simply Nam Beauty Private Limited.

Nykaa Q2 PAT Soars 207% to Rs 101 Cr, Acquires 82% Stake in Simply Nam

Nykaa reported a 207% YoY increase in PAT to Rs 101 crore in Q2 FY27, with revenue rising 28% YoY to Rs 3,006 crore. The company also announced plans to acquire an 82% equity stake in Simply Nam Beauty Private Limited for up to Rs 33 crore. Key metrics include a 28% YoY revenue growth, a 106-basis-point improvement in gross margin to 46%, and a 65% YoY rise in EBITDA to Rs 263 crore. The beauty vertical's NSV grew 28% YoY to Rs 4,454 crore, while the fashion business saw a 47% YoY NSV increase to Rs 509 crore. Nykaa's House of Nykaa achieved an annualised GMV run rate of over Rs 4,000 crore. The acquisition of Simply Nam strengthens its premium makeup segment presence, supported by partnerships like L'Oréal's BOLD fund. Investors, customers, and competitors are directly impacted, with regulators facing potential scrutiny from increased market activity. Nykaa's focus on omnichannel growth and customer engagement through events like Nykaaland reinforces its ecosystem advantages.

Nykaa's acquisition of Simply Nam is expected to close in Q3 FY27, subject to regulatory approvals. The company will expand Nykaa Now to 25 cities by FY27 end and continue partnerships with L'Oréal's BOLD fund.

Nykaa's Q2 results highlight strong financial growth and strategic expansion, with the Simply Nam acquisition poised to enhance its market leadership if regulatory hurdles are cleared.

Topics: Beauty Industry, Strategic Acquisitions, India Markets, EBITDA Growth, NSV Expansion, Nykaa Now, L'OréAl Partnerships, Beauty Sector Leadership

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Source: ET Markets