Nykaa is not giving up on fashion yet.

The listed beauty and personal care brand, primarily known for its beauty segment, has kept fashion on the back seat for a while. Until now.

Nykaa released its Q2 FY26 results and reported stellar performance with a 166% jump in its consolidated net profit to INR 33 Cr in the quarter under review, from INR 13 Cr in the same quarter last year.

Overall revenue surged 25% YoY and 9% QoQ to INR 2,346 Cr and there was a 53% YoY jump in EBITDA to INR 159 Cr (6.8% EBITDA Margin). And a bulk of this was due to the beauty segment. Fashion contributed less than 10% to the revenue this quarter, but its improving profitability could actually influence Nykaa’s stock and direction going forward.

Beauty Vs Fashion

From working on its private labels to introducing legacy brands on its platform, Nykaa is working on serving all segments of its customer base for both segments – beauty and fashion.

The beauty vertical, which has always been in the spotlight, reported a 25% jump in its YoY, but fashion revenue growth was relatively timid.

Q2 FY26 revenue grew 22% to INR 201 Cr from INR 166 Cr in FY25, but Nykaa was particularly keen to point out that adjusted EBITDA loss fell by almost 63% YoY and 55% QoQ to INR 12 Cr.

It will be interesting to see whether the market factors fashion into Nykaa’s price going forward, because thus far it was not a major factor within Nykaa’s overall revenue structure.

“Nykaa’s stock will be rallying after this quarters’ result. My guess is in the next coming quarters, there will be a significant interest from the market players to take up the company’s stock,” IIM Calcutta finance professor Sudhakara Reddy said, adding that December quarter earning per share is expected to jump 3x YoY to around INR 0.26 from INR 0.09 last year.

Reddy elaborated that this growth is on the back of both — strong top line and bottom line results. And fashion vertical’s improved margins are expected to be a big factor in this drive.

In a brokerage report at the end of October, JM Financial reportedly maintained a ‘buy’ rating on Nykaa, projecting around 28% year-on-year GMV growth. While Nykaa missed this guidance, there are signs of its diversified supply chain and sharp segmentation is showing results.

Nykaa’s Unwavering Trust In Fashion

Nykaa founder and CEO Falguni Nayar called the uptick from -9% to -3.5%........

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