FSN E-Commerce, the parent company behind beauty and lifestyle retailer Nykaa, has reported a steady performance in the final quarter of the financial year 2025, with strong momentum in its core beauty business. However, the company anticipates its overall net revenue growth to land in the lower-to-mid 20% range compared to the same period last year.
The beauty vertical continues to be the company’s growth engine, outpacing broader industry trends. Nykaa attributed this to aggressive customer acquisition strategies, solid performance at its physical retail outlets, and rising consumer interest in both its in-house and acquired brands under the ‘House of Nykaa’ banner. To bolster its offline presence, the company opened 19 new stores during the quarter, further enhancing its retail footprint across India, according to media reports.
Nykaa’s fashion segment, while showing signs of recovery, has not kept pace with the beauty division. GMV growth for fashion is expected to be in the high teens, with a modest pickup in its main platform’s performance. The company acknowledged that slower traction in its fashion house brands and reduced content activity, typically stronger in the festive third quarter, contributed to a softer revenue outcome in this category.
According to media reports, in the previous quarter (Q3 FY25), Nykaa recorded a sharp rise in profits, posting a 103% quarter-on-quarter increase to Rs 26.41 crore. The beauty segment clocked a 32% jump in GMV, reaching Rs 3,389 crore, while revenue rose 27% year-on-year to Rs 2,060 crore.
Meanwhile, the fashion business reported GMV of Rs 1,129.9 crore in the same quarter, marking an 8% increase over the previous year. Over the last three fiscal years, revenue in the fashion division has grown significantly, from Rs 133.9 crore in FY23 to Rs 199 crore in FY25. Despite the solid operational performance, investor sentiment remained lukewarm. FSN E-Commerce shares dipped 2.59% in early trade on Monday, changing hands at Rs 72.12 around 10:30 am.