Don’t be surprised if Nykaa launches a new shade in its cosmetics range – the colour of money.
The multi-platform beauty and lifestyle company delivered a record quarter in Q3 FY2026, more than doubling its net profit from Rs 26 crore last year to Rs 63 crore. It registered a 27 percent growth in GMV and a 63 percent surge in EBITDA.
Nykaa’s bumper quarter, its statements afterwards, and its journey so far tell us a few things.
1. Differentiated Reputation
Nykaa’s reputational differentiator is that it is one of the few players which brings premium brands to your doorstep. Over the years, it has strengthened relationships with these brands, becoming an integrated commerce partner and not just a distributor.
Recently, it solidified its association with L’Oreal, Nike and Kiehl’s through exclusive partnerships, including for D2C and stores.
Founded by Falguni Nayar, and with Deepika Padukone as the brand ambassador, Nykaa also has a strong female identity. It draws in women customers and ties in with the brand name (Nykaa means “actress” or “one in the spotlight”).
2. Strategic Offline Presence
Nykaa has contributed to the strategic evolution of physical stores and pop-ups. In addition to using offline spaces as discovery and experience centres, the brand now leverages them as dark stores or venues for customer engagement events and content shoots.
The most recent edition of Nykaaland, a three-day beauty and lifestyle festival, attracted 30,000 visitors and reached millions of others through social media.
Another way in which the brand reinforced itself in the offline space was through its B2B distribution operation, which supplies products to offline retailers.
3. Evergreen sector
This is a curious time in India. Despite a certain amount of volatility and frugality, Gen-Z is driving consumption across categories, including fashion and beauty. According to some studies Gen-Z accounts for almost 50 percent of spending.
Besides, Gen-Z or not, everyone likes to look good. Personal upkeep is not just about vanity but also matters from the career and self-care standpoints. Sectors like fashion and beauty are evergreen, enabling strong players like Nykaa to thrive.
There is a quote often attributed to Coco Chanel, the founder of the eponymous luxury brand and among the pioneers of female entrepreneurship.
“If you are sad, add more lipstick and attack.”
The words are apt for current times.