Nykaa eyes majority stake in Deepika Padukone's skincare brand
What's the story
Leading beauty and fashion retailer Nykaa is said to be in talks to acquire a majority stake in actress Deepika Padukone's premium skincare brand, 82°E. The move comes as part of Nykaa's strategy to strengthen its House of Nykaa portfolio amid growing competition. The potential deal could leverage Nykaa's market leadership and existing customer base of 42 million.
Market dynamics
82°E has struggled with high prices and stiff competition
Despite its premium positioning, 82°E has struggled with high prices and stiff competition from digital-first brands. The brand's revenue fell 30% year-on-year (YoY) to ₹14.7 crore in FY25, according to regulatory filings. Meanwhile, Nykaa has been on an acquisition spree as part of its House of Nykaa strategy. The company has already acquired brands like Nudge Wellness and Dot & Key skincare to enhance its portfolio in the beauty retail space.
Business growth
Nykaa's financial performance and expansion plans
Nykaa recently posted a 156% YoY jump in net profit to ₹68 crore for the quarter ended December 31, 2025. The company's consolidated revenue also grew by 27% to ₹2,873 crore. In the same quarter, Nykaa opened 11 new stores and expanded its business into four new cities, taking the total number of beauty stores to 276.
Industry trends
Trends in celebrity brand partnerships and joint ventures
Most celebrity brands prefer partnering with corporates for scale and profitability, rather than building standalone businesses. This trend is evident in Alia Bhatt's sale of a 51% stake in her sustainable kids and maternity wear brand Ed-a-Mamma to Reliance Retail Ventures. Katrina Kaif's makeup brand Kay Beauty, a joint venture with Nykaa, reported a 50% YoY revenue growth to ₹132.4 crore in FY25.
Market growth
Projected growth of India's beauty market and Nykaa's role
A Nykaa-Redseer report has projected India as the world's fastest-growing beauty and personal care market, with sales expected to reach $34 billion by 2028. The report also highlighted e-commerce as the fastest-growing segment within beauty, driven by easier access to global premium brands and higher discretionary spending. Despite challenges in the D2C space, Nykaa's strong financial performance indicates a promising future in this rapidly growing market.