Startup Originals Team
Beauty and fashion e-commerce platform Nykaa reported a strong start to FY27, posting a 29% year-on-year increase in revenue from operations and a 3.3-fold jump in net profit during the first quarter. Alongside its earnings announcement, the company also revealed the acquisition of a 51% stake in skincare company Aminu Wellness Private Limited to strengthen its premium beauty portfolio.
The results highlight Nykaa’s continued growth in India’s beauty and personal care market, supported by strong consumer demand, improved operational efficiency, and strategic investments in premium brands.
What Happened?
According to the company’s financial results filed with the National Stock Exchange (NSE), revenue from operations increased to ₹2,782 crore in Q1 FY27, compared to ₹2,155 crore in the corresponding quarter of the previous financial year, reflecting a 29% year-on-year growth.
Nykaa also reported a sharp improvement in profitability. Net profit surged to ₹80 crore, up from ₹24 crore in Q1 FY26, representing a 3.3-times increase. On a sequential basis, profit remained largely stable compared to ₹79 crore reported in the previous quarter.
In a separate strategic move, the company’s board approved the acquisition of a 51% stake in Aminu Wellness Private Limited for up to ₹32 crore through a cash transaction.
Key Details
Nykaa’s beauty business remained its largest revenue contributor, generating ₹2,516 crore, which accounted for more than 90% of the company’s operating revenue during the quarter.
The fashion segment contributed ₹253 crore, representing around 9% of total operating revenue, as the company continued to expand its presence in online fashion retail.
On the expenditure side, the cost of materials remained Nykaa’s largest expense at ₹1,506 crore, accounting for approximately 57% of total expenditure. Employee benefit expenses increased by more than 23% to ₹225 crore, while spending on finance, marketing, technology, logistics, and other operational costs pushed total expenditure to ₹2,662 crore.
Despite higher operating expenses, stronger revenue growth and better cost efficiencies enabled the company to significantly improve its bottom line.
Acquisition of Aminu Wellness
Alongside its quarterly earnings, Nykaa announced the acquisition of a 51% stake in Aminu Wellness Private Limited for up to ₹32 crore.
Founded in 2019, Aminu Wellness develops and sells skincare products and reported a turnover of ₹19.4 crore in FY26.
Nykaa said the acquisition aligns with its strategy of strengthening its presence in the premium beauty and personal care segment. The company expects Aminu’s research and development capabilities, along with its omnichannel distribution network, to enhance Nykaa’s premium skincare offerings and support future product innovation.
Why This Matters
Nykaa’s latest quarterly performance demonstrates the continued strength of India’s beauty and personal care market, where demand for premium products remains robust despite a competitive retail environment.
The significant improvement in profitability indicates that the company is successfully balancing growth with operational efficiency. At the same time, the acquisition of Aminu reflects Nykaa’s strategy of expanding its portfolio through investments in emerging beauty brands with strong product development capabilities.
These developments could further strengthen Nykaa’s competitive position against both domestic and international beauty retailers operating in India.
Company Background
Founded in 2012 by Falguni Nayar, Nykaa is one of India’s leading beauty, personal care, and fashion e-commerce platforms. Headquartered in Mumbai, the company operates through a combination of online platforms and physical retail stores across the country.
Over the years, Nykaa has expanded beyond beauty into fashion, luxury products, and owned brands, while building an omnichannel retail presence that serves millions of customers across India.
Industry Impact
The strong quarterly results reinforce the resilience of India’s beauty and personal care industry, which continues to benefit from rising disposable incomes, increasing digital commerce adoption, and growing consumer interest in premium skincare products.
Nykaa’s acquisition strategy also highlights the growing trend of established beauty retailers investing in niche skincare brands to diversify their product portfolios and accelerate innovation.
Future Plans
With the acquisition of Aminu Wellness, Nykaa aims to strengthen its premium skincare business by leveraging the brand’s product development expertise and omnichannel distribution capabilities. The company is also expected to continue expanding its beauty ecosystem while improving operational efficiency and driving sustainable profit growth.
Conclusion
Nykaa delivered a strong Q1 FY27 performance, reporting robust revenue growth and a sharp increase in profitability. Combined with its strategic acquisition of Aminu Wellness, the company has reinforced its long-term focus on expanding its premium beauty portfolio. As consumer demand for high-quality beauty products continues to grow, Nykaa appears well-positioned to strengthen its leadership in India’s beauty and personal care market.
