Kay Beauty, beauty brand co-founded by actor Katrina Kaif and Nykaa, has reached an annualised net sales value (NSV) revenue run rate of Rs 300 crore in the first quarter of FY27. The figure is three times the level recorded three years ago, according to the company.
The brand, which started operations in 2019, has so far been used by nearly 3 million consumers, based on figures shared by the company. Kay Beauty sells makeup and beauty products and has focused on building a portfolio positioned in the accessible premium segment.
Company said the business became profitable within its first year of operations and has remained profitable as it has expanded. It currently reports a double-digit EBITDA margin and return on capital employed (ROCE) of more than 50%.
Kay Beauty Scales Business
Latest figures put Kay Beauty among the larger celebrity-led beauty brands in the Indian market, although the company has not disclosed its absolute revenue or profit for the quarter in the information shared.
The Rs 300 crore figure is an annualised NSV run rate rather than reported quarterly sales. It is calculated by annualising the business run rate for Q1 FY27 and therefore does not represent the actual revenue booked during the full financial year.
Company has attributed the increase in scale to product launches, expansion of its portfolio and continued investment in the brand. It said its operating economics have improved alongside growth.
New Products Drive Sales
Product launches have become an important part of Kay Beauty sales. During Q1 FY27, new products accounted for about 40% of the brand business, according to the company.
Kay Beauty has been adding products and formats across its beauty portfolio, with the stated focus on differentiated products and premium positioning. The contribution from newer products indicates that launches are accounting for a significant share of current consumer demand.
The company has not provided a category-wise breakup of the 40% contribution or disclosed which individual launches accounted for the largest share of sales during the quarter.
Brand Maintains Profitability
Kay Beauty said it has maintained profitability while expanding its consumer base and product range. The company has also pointed to its double-digit EBITDA margin as an indicator of operating profitability.
Its reported ROCE of more than 50% indicates that the business is generating returns relative to the capital employed in the operation. However, the company has not provided the underlying revenue, profit or capital figures used to calculate these ratios in the information shared.
Kay Beauty said its financial performance has allowed it to continue spending on product development, marketing and expansion while maintaining its operating economics.
What is Kay Beauty
Kay Beauty was launched in 2019 by Katrina Kaif and Nykaa, the beauty and fashion platform founded by Falguni Nayar. The brand operates as a beauty and cosmetics business, with products across makeup and related categories. Katrina Kaif is involved as the celebrity co-founder, while Nykaa provides the broader beauty retail and distribution platform.
The brand was created around the accessible premium beauty segment and has since expanded its product range. Its distribution model includes Nykaa and other retail and online channels, allowing the products to reach consumers beyond the platform on which the brand was originally launched.
Kay Beauty has also used product collaborations and new launches as part of its business strategy. The company says nearly 3 million consumers have purchased or used its products since launch.
Beauty Business Model
The growth of Kay Beauty comes as India’s beauty market sees increased competition from established cosmetics companies, digital-first brands and celebrity-backed ventures. In this environment, profitability and repeat demand remain important measures alongside topline growth.
For Kay Beauty, the next stage of expansion will depend on whether the brand can sustain its current sales run rate while maintaining margins and returns on capital. The company has indicated that product innovation and portfolio expansion will remain key areas of focus.
The Q1 FY27 figures show a business that has expanded considerably from its launch in 2019, with the annualised NSV run rate now at Rs 300 crore and new products accounting for about 40% of business during the quarter.
