Nykaa Q3 Profit Zooms 51% To INR 26 Cr

Omnichannel beauty retailer Nykaa’s consolidated net profit surged 51% to INR 26.4 Cr in the third quarter of the financial year 2024-25 (Q3 FY25) from INR 17.5 Cr in the year-ago period on the back of strong growth across beauty and fashion verticals.

On a quarter-on-quarter basis, net profit rose 104% from INR 12.97 Cr.

Revenue from operations jumped 26.74% to INR 2,267.2 Cr in the September-December quarter from INR 1,788.8 Cr in the corresponding period last year. Sequentially, it increased by 20.93% from INR 1,874.7 Cr. 

Including other income of INR 5.6 Cr, the beauty and ecommerce major’s total revenue stood at INR 2,272.7 Cr for the quarter ended December 2024. 

Its cumulative customer base across the beauty and fashion segments stood at 40 Mn in Q3 FY25, a 29% year-on-year increase.

In an investor presentation, the Falguni Nayar-led company said it clocked a consolidated gross merchandise value (GMV) of INR 4,527.9 Cr in Q3 FY25, a jump of 25% from INR 3,617.9 Cr in the year-ago period. Meanwhile, its EBITDA zoomed 42% to INR 140.8 Cr during the quarter under review from INR 98.8 Cr in Q3 FY24.  

BPC Segment Steals The Spotlight

The beauty and personal care (BPC) segment continued to be the key revenue driver for Nykaa, contributing INR 2,060 Cr to the top line during the quarter under review. This was a 27% increase from INR 1,622.7 Cr in Q3 FY24 and a nearly 21% jump from INR 1,702.9 Cr in Q2 FY25.

The strong growth came on the back of a 32% jump in the BPC segment’s GMV to INR 3,389.9 Cr in Q3 FY25 from INR 2,569.6 Cr in the same quarter last year.

Meanwhile, annual unique transacting customers across Nykaa, Retail and Nykaa Man surged 22% to 13.7 Mn in Q3 FY25 from 11.7 Mn in Q3 FY24.

Nykaa currently operates 221 beauty stores — such as Nykaa On Trend, Nykaa Luxe and Nykaa Kiosk — spanning 2.1 Lakh square feet in 73 cities, of which 12 stores were opened in the reported quarter.

The BPC major said that 70% of orders for beauty products were delivered within the same/next day in the top 110 cities in the quarter ended December 2024. It must be noted that Nykaa is also looking to foray into 10-minute deliveries for beauty products. 

In October 2024, it was reported that the omnichannel beauty retailer piloted its 10-minute delivery service in select pin codes of Mumbai for 5% of its SKU base. The same month, the company’s founder and CEO Nayar said that Nykaa will focus on addressing consumer demand for quick deliveries once the sector scales to a certain level.

Fashion Delivers Strong Growth Amid Tough Macro Environment

Nykaa raked in INR 199 Cr from its fashion segment in the September to December quarter, up 21% from 164 Cr in the year-ago period. The revenue growth outpaced the rise in GMV, which rose 8% year-on-year to INR 1,130 Cr in Q3 FY25.

The growth was driven by strong marketing income from events like Nykaaland and Nykaa Wali Shaadi and higher services-related income.

Despite the growth, Nykaa incurred a loss of INR 25.41 Cr from this segment during the quarter.

Nykaa also earned a revenue of INR 8.2 Cr from its international beauty business during the quarter under review, a whopping 176% increase from INR 3 Cr in Q3 FY24. However, this division reported a loss of INR 7.96 Cr in Q3 FY25.

Zooming Into Expenses

In line with the surge in revenue, Nykaa’s total expenses rose nearly 26% to INR 2,228.18 Cr in Q3 FY25 from INR 1,769.89 Cr in the same quarter last year. On a QoQ basis, total expenditure rose almost 20% from INR 1,858.93 Cr.

Purchase Of Traded Goods: The BPC major managed to control the rise in expenditure under this head during the quarter under review. This spending rose a little over 4% to INR 1,284.96 Cr in Q3 FY25 from INR 1,232.25 Cr in Q3 FY24.

Employee Costs: Nykaa spent INR 174.60 Cr towards employees’ remuneration and other benefits in Q3 FY25, an 18% increase over INR 147.93 Cr spent in the year-ago quarter.

Shares of FSN Ecommerce Ventures, the parent of Nykaa, ended Monday’s trading session 2.25% lower at INR 169.60 apiece on the BSE.