FSN E-Commerce Ventures, the parent of Nykaa, on Monday released its fiscal third quarter earnings report with consolidated net profit at Rs 26.41 crore, recording a growth of 51.35 per cent in comparison to Rs 17.45 crore reported during the corresponding quarter of FY24. It posted revenue from operations at Rs 2,267.21 crore, up 26.74 per cent as against Rs 1,788.80 crore recorded during the third quarter of previous financial year. The company EBITDA stood at Rs 140.7 crore, up 42.6 per cent YoY, leading to significant margin expansion.
The company posted total expenses of Rs 2,228.18 crore during Q3FY25, up 25.89 per cent in comparison to Rs 1,769.89 crore incurred during the same period of previous fiscal. Nykaa recorded GMV growth of 25 per cent on-year to Rs 4,527.90 crore.
Shares of Nykaa were down 2.25 per cent at 4:20 pm at a trading price of Rs 169.60.
Nykaa’s Q3 performance across business verticals
Nykaa’s beauty vertical saw accelerated growth momentum with revenue during the quarter in review at Rs 2,060.01 crore and GMV growth of 32 per cent YoY at Rs 3,389.90 crore. This was fuelled by customer growth with Nykaa’s cumulative beauty customer base growing to 32 million and One Nykaa cumulative base (aggregation of unique customer base across all Nykaa platforms) to 40 million. The order volume recorded a growth of 30 per cent YoY. With 12 new stores launched during the quarter and 47 during the year, Nykaa’s offline network reached 221 stores spanning 73 cities. The total retail space, meanwhile, reached 2.1 lakh sqft, reporting a growth of 31 per cent YoY. Nykaa beauty vertical launched 200+ new brands in Q3FY25
House of Nykaa across beauty and fashion has seen significant growth since IPO with annualised GMV run rate of around Rs 2,400.00 crore, a scale up of 3x over the last 3 years. On beauty, it has an annualised GMV run rate of Rs 1,900.00 crore. House of Nykaa posted Q3 revenue growth of 49 per cent YoY. Nykaa’s acquired beauty brand Dot & Key has scaled 15x in the last 3 years and now is at annualised GMV and NSV run rate of Rs 900.00 crore and Rs 510.00 crore respectively, achieving healthy profitability as well. Kay Beauty has seen 4x growth in GMV in the last 3 years achieving an annualised GMV of Rs 330.00 crore in Q3FY25.
Nykaa’s distribution business Superstore by Nykaa saw GMV growth of 53 per cent YoY and the business has scaled 12x within 3 years of its operations and has crossed the milestone of Rs 1,000.00 crore GMV on an annualised basis this quarter. The business continues to see significant improvement in profitability with contribution margin improving to -12.1 per cent as a % of NSV in Q3FY25 from -17.2 per cent in Q3FY24.
Nykaa Fashion witnessed a revenue at Rs 199.00 crore, up 21 per cent YoY in a subdued demand environment. The segment posted GMV growth of 8 per cent YoY to Rs 1,129.90 crore. Further, LBB – Nykaa’s content platform business saw strong growth this quarter aided by successful marketing campaigns and events such as Nykaaland and Nykaa wali Shaadi, driving overall higher revenue growth for the fashion vertical.