Nykaa is India’s glam unicorn turned listed company, selling everything from lipsticks to lehengas. With a PE ratio of 835 (no, that’s not a typo), it’s one of those rare businesses where the kajal is darker than the bottom line. Sales are rising (₹8,359 Cr), PAT is a pocket-sized ₹80 Cr, and promoters still hold 52%. Investors, meanwhile, are holding their breath and praying this “lipstick effect” translates into real profits someday.
2. Introduction
Welcome to Nykaa—where India’s obsession with beauty is monetized, packaged, and delivered faster than you can say contour. Born as a BPC (Beauty & Personal Care) platform, Nykaa is now a full-blown lifestyle bazaar. They’ve got beauty, fashion, wellness, men’s grooming, lingerie, perfumes, and even “Superstore” for kiranas.
But here’s the kicker: despite running India’s largest specialist beauty network, Nykaa’s profits are thinner than Kareena Kapoor in Tashan. At a market cap of ₹66,000 Cr, the company trades at 51× book value and 7.9× sales. Translation: you’re paying premium perfume rates for nariyal tel margins.
Why do investors tolerate it? Because Nykaa is the “partner of choice” for Chanel, Armani, and 6,700+ other brands. Also, because India’s middle class has discovered that sheet masks are cheaper therapy than therapists.
Question: Will Nykaa become India’s Sephora or just another Flipkart Fashion footnote?
3. Business Model – WTF Do They Even Do?
Beauty & Personal Care (90% revenue): The real moneymaker. Nearly 3 lakh SKUs, 3,000+ brands, and 13.1 Mn transacting customers. Inventory-led model (they buy, they stock, they sell). High AOV at ₹1,864.
Fashion (9% revenue): The 2018-born child. 1,500+ brands, 4.3 Mn SKUs. AOV at ₹3,420. Still loss-making (EBITDA -6.2%), but improving.
Nykaa Man: Grooming and fashion for men, because apparently men too need sheet masks.
Superstore (eB2B): Kirana shops get their cosmetics from Nykaa now. Serves 1,100+ cities, 3 lakh+ retailers. Fast-growing, close to profitability.
Owned Brands: 15 in total (Dot & Key, Kay Beauty, Nykaa Naturals, etc.), which give FMCG-like margins. Dot & Key alone is now a ₹1,500 Cr GMV beast.
In short, Nykaa is a blend of Sephora, H&M, and DMart’s supply chain—with a YouTube channel thrown in for extra sparkle.
4. Financials Overview
Metric
Latest Qtr (Q1FY26)
YoY Qtr (Q1FY25)
Prev Qtr (Q4FY25)
YoY %
QoQ %
Revenue
₹2,155 Cr
₹1,746 Cr
₹2,062 Cr
23.4%
4.5%
EBITDA
₹141 Cr
₹96 Cr
₹133 Cr
46.9%
6.0%
PAT
₹24 Cr
₹14 Cr
₹19 Cr
71.4%
26.3%
EPS (₹)
0.08
0.03
0.07
166%
14.3%
Commentary: Sales growth is on fleek, profits are more like eyeliner smudged after 2 hours. EPS of 8 paise means you need 1,250 shares just to afford one Lakmé lipstick.
5. Valuation – Fair Value Range Only
P/E Method: EPS ₹0.28 × industry PE 30 = ~₹8.4/share. CMP ₹233 is basically Dior pricing for Patanjali toothpaste earnings.
EV/EBITDA: EV ₹67,729 Cr ÷ FY25 EBITDA ₹518 Cr = ~131x. Fair range (20–30x) implies value at ₹10k–₹15k Cr i.e. ₹35–50/share.
