Nykaa’s marketing spend rises 29% in Q2 FY26 as revenue grows 25% YoY: Report

FSN E-Commerce Ventures Limited, the parent company of Nykaa, reported a 29% year-on-year increase in marketing and selling expenses to Rs 368 crore in the second quarter of FY26, representing 15.7% of revenue from operations.

Fulfilment expenses also rose 30% to Rs 227 crore during the quarter ended September 2025. Despite higher spending, the company’s profitability improved, with EBITDA up 53% to Rs 159 crore and net profit rising 154% to Rs 33 crore.

Net revenue from operations grew 25% year-on-year to Rs 2,346 crore, while gross profit increased 28% to Rs 1,054 crore, maintaining margins at 44.9%. The company’s gross merchandise value (GMV) stood at Rs 4,744 crore, marking its highest year-on-year growth in six quarters.

The company’s beauty and fashion segments both reported 27% growth in net sales value, with the beauty vertical contributing Rs 3,551 crore in GMV and fashion reaching Rs 1,180 crore. The platform also recorded 450 million visits for beauty and 191 million visits for fashion, up 26% and 30% respectively, driven by continued investment in marketing and content initiatives.

The House of Nykaa vertical reached a Rs 2,900 crore annualised GMV run rate, led by performances from brands such as Dot & Key (Rs 1,500 crore+ GMV run rate) and Kay Beauty (Rs 350 crore+).

In its eB2B business, Nykaa Superstore saw 25% growth in GMV and a 41% increase in transacting retailers, crossing the one-lakh mark.

The company added 19 new beauty stores during the quarter, taking its total to 265 stores across 90 cities, and said it continues to invest in retail expansion, fulfilment capabilities, and technology to support future growth.