1. At a Glance

When your P/E ratio is higher than a SpaceX rocket altitude, youknowyou’re Nykaa. FSN E-Commerce Ventures Ltd — the artist formerly known as “your girlfriend’s favorite tab on Chrome” — has once again pulled a glam glow-up in Q2FY26. The company posted a₹2,346 croreconsolidated revenue, up25% YoY, and a net profit of₹33 crore, up249% YoY, while maintaining that godly P/E ratio of673x— a valuation so elevated it probably does skincare with retinol.

At₹246/share, Nykaa’s market cap stands at₹70,556 crore, roughly equal to the GDP of a small island nation. Over the lastthree months, the stock has delivered+21.6%returns, proving that lipstick margins and investor optimism still mix well.

Operating margins crept up to7%, showing that Nykaa is slowly converting influencer talk into tangible profits. With52% of revenue from online,10% from offline stores, and19% from its eB2B SuperStore, the omnichannel model is painting the town pink — and profitable.

2. Introduction

Let’s be honest — Nykaa isn’t just selling beauty products; it’s selling validation wrapped in a discount coupon and delivered in 2.2 days. Founded by ex-banker-turned-beauty-bossFalguni Nayar, Nykaa has managed to turn the Indian cosmetic and fashion e-commerce space into a glossier battleground.

From a scrappy start-up to a₹70,000+ crore behemoth, Nykaa has transcended the phase of “unicorn” — it’s now basically a “beauticorn.” Yet beneath the mascara and metrics, one question remains:Can profits keep up with the contouring?

In Q2FY26, the brand reported strong traction across both beauty and fashion segments. TheBeauty & Personal Care (BPC)division, still its crown jewel, contributed90% of the revenue, whileNykaa Fashionstrutted behind with9%, and the newSuperStore eB2Bmodel contributed the rest.

But even as Nykaa shines in the spotlight, its financial eyeliner still smudges a bit. WithROE at 5.16%andROCE at 9.59%, it’s making profits — just not glam enough to match its price tag. Yet, investors can’t stop watching; it’s the classic Bollywood love story of “valuation pe pehla pyaar.”

3. Business Model – WTF Do They Even Do?

Nykaa runs adigitally native, content-driven lifestyle platform. But let’s decode that corporate jargon: they sell things that make you look good, and they make youfeel goodabout buying them.

• Beauty & Personal Care (BPC)– The OG business and Nykaa’s bread-and-butter (or more accurately, lip gloss and serum). With2.96 lakh SKUs from 3,118 brands, this segment runs on aninventory-led model— meaning Nykaa buys stock, stores it, and ships it, instead of just connecting sellers. It’s basically Amazon with a beauty filter.
• Nykaa Fashion– Launched in 2018, it now hosts1,553 brands and 4.3 million SKUsacross categories like women’s, men’s, kids’, and home. The models? “Luxe Store,” “Hidden Gems,” and “First in Fashion” — each sounding like Netflix categories but actually clever segmentation.
• Nykaa Man & SuperStore– The eB2B play, serving retailers in1,000+ citieswith3.8 lakh+ orders. This is the company’s entry into India’s beauty supply chain – a segment where margin is the real makeup.

And let’s not forget their15 owned brandslike Dot & Key, Nykaa Naturals, and Kay Beauty — because why sell others’ products when you can sell your own with a 30% markup?

4. Financials Overview

Annualised EPS:₹0.48 → implying a P/E of ~513x.

“P/E not meaningful” is usually a disclaimer. For Nykaa, it’s a lifestyle choice.

Margins are improving, profits are