Nykaa is expanding its beauty portfolio through a majority investment in celebrity makeup brand Simply Nam, even as its latest quarterly results show higher spending on marketing and distribution alongside stronger revenue and profitability.
FSN E-Commerce Ventures, the parent company of Nykaa, has approved the acquisition of an 82% equity stake in Simply Nam Beauty Private Limited for up to Rs 33 crore. The transaction brings the premium makeup brand into Nykaa’s portfolio, with founder Namrata Soni retaining an 18% stake and taking on the roles of co-founder and chief product officer.
The proposed partnership combines Nykaa’s distribution network and omnichannel retail presence with Simply Nam’s product development capabilities and community-led approach to beauty. The move adds another brand to the company’s beauty business while extending its presence in the premium makeup segment.
The acquisition comes alongside a strong performance in the September quarter of FY27. Nykaa reported consolidated revenue from operations of Rs 3,006 crore, a 28% increase from Rs 2,346 crore in the corresponding quarter last year. Profit after tax rose 207% year-on-year to Rs 101 crore, compared with Rs 33 crore.
The company’s consolidated EBITDA also grew 65% to Rs 263 crore from Rs 159 crore a year earlier. Its EBITDA margin improved to 8.7%, up from 6.8% in Q2 FY26.
Marketing and selling and distribution expenses, meanwhile, reached Rs 457 crore, marking a 24% increase from Rs 368 crore in the year-ago quarter. Compared with the June quarter, the expenditure was up 11% from Rs 412 crore. However, these costs accounted for 15.2% of revenue from operations, lower than the 15.7% recorded in the same period last year.
The improvement in spending efficiency was visible across both major business segments. In Beauty, marketing and S&D expenses rose to Rs 330 crore from Rs 260 crore, while their share of net sales value (NSV) edged down to 13% from 13.1%. The segment recorded NSV of Rs 2,536 crore, registering 28% year-on-year growth.
Fashion saw expenses increase to Rs 116 crore from Rs 93 crore. Yet, spending as a proportion of NSV declined more noticeably, falling to 22.7% from 26.9%. The segment’s NSV grew 47% to Rs 509 crore.
Nykaa attributed the improved marketing efficiency to stronger productivity in performance marketing across its Beauty and Fashion platforms, as well as better business development executive productivity in its Superstore business.
Together, the quarterly performance and the Simply Nam investment highlight two parallel priorities for Nykaa: improving the productivity of its existing businesses while adding brands to its beauty portfolio.
Nykaa’s latest results present an interesting contrast between rising absolute marketing expenditure and improving cost efficiency relative to revenue and segment sales. The Simply Nam acquisition adds another dimension to its growth strategy, allowing the company to expand its brand portfolio while leveraging its existing retail and distribution infrastructure.
