Nykaa’s Q4 Profit Nearly Triples on Booming Demand for Premium Beauty

THE WHAT? Indian beauty powerhouse Nykaa has reported a fourth-quarter profit surge, with consolidated net profit hitting 202.8 million rupees (US$2.4 million), nearly triple the figure from a year earlier. The jump comes on the back of soaring demand for premium beauty products, including international heavyweights like Estée Lauder and Rihanna’s Fenty Beauty, driving 25% growth in beauty sales to 18.95 billion rupees.

THE DETAILS Despite broader signs of urban consumption slowdown in India, the premium beauty segment has remained resilient, with upper middle-class and affluent consumers continuing to spend on discretionary self-care. Nykaa’s gross margins expanded by 151 basis points to 44.1% in the quarter, thanks to its premium product mix. Total expenses grew 23% to 20.31 billion rupees—less than the pace of revenue growth—giving a further lift to the bottom line. Nykaa’s fashion apparel business also posted an 11% rise in quarterly revenue to 1.61 billion rupees, reinforcing the brand’s cross-category momentum.

THE WHY?  Nykaa’s latest results highlight a critical trend in India’s US$28 billion beauty and personal care market: the enduring strength of the premium segment, even as wider discretionary spending softens. By tapping into consumers’ appetite for prestige products and expanding its high-margin offerings, Nykaa is effectively navigating market pressures and securing its position as a leading beauty retailer. For international beauty brands, Nykaa’s performance underscores the opportunity in India’s premium space, signaling strong demand for global labels and sustained growth potential in this fast-expanding market.

Source: Reuters

The post Nykaa’s Q4 Profit Nearly Triples on Booming Demand for Premium Beauty appeared first on Global Cosmetics News.