Nykaa Allots 1.80 Lakh Equity Shares Under ESOP

Beauty and fashion ecommerce major Nykaa has allotted 1.80 Lakh equity shares to its employees under Employee Stock Option Plan (ESOP).

This comes on the back of the startup posting a 66.3% jump in its consolidated net profit in the second quarter of FY25 to INR 12.97 Cr from INR 7.8 Cr in the year-ago period.

“…The equity shares so allotted, shall rank pari-passu with the existing equity shares of the Company in all respects,” the company said in a filing.

However, it has not disclosed the change in its paid-up capital. 

It is pertinent to note that Nykaa spent INR 161.49 Cr in Q2 FY25 as a part of Employee Benefit Expense. This number is up by 18.5% from INR 136.32 Cr it spent last year.

Post the financial results announcement , brokerage firm JM Financial has maintained its “buy” recommendation for the ecommerce giant with the same price target of INR 250.

As per the brokerage firm, the startup has overcome “unfavourable demand environment” and delivered growth.

However, brokerage firm Bernstein maintained its “market-perform” rating for the startup, highlighting an 8.6% decline in the company’s EBIDTA margin. It set a target price of INR 165.

Nykaa’s revenue from operations jumped 24.4% to INR 1,874.74 Cr during the September quarter of FY25 from INR 1,746.11 Cr in Q2 FY24. On a quarter-on-quarter (QoQ) basis, revenue increased 7.2% from INR 1,753.44 Cr. 

While the beauty and personal care (BPC) segment showcased a 24.3% YoY jump in its revenue to INR 1,702.89 Cr, the fashion vertical continued to lag behind. However, this segment posted 21.7% revenue surge YoY to INR 166.10 Cr in Q2 FY25.

The overall expenses of the startup rose by 23.7% year-on-year (YoY) and 7.3% QoQ to INR 1,858.93 Cr. The company majorly spent on purchase of traded goods, employee benefit expenses and marketing.

The shares of Nykaa ended today’s trading session at INR 172.10 apiece on the BSE, 3.12% lower than the previous close of INR 177.65.