Nykaa Q4: Profit More Than Doubles YoY To INR 19.1 Cr

BPC major Nykaa’s consolidated net profit surged 110% to INR 19.1 Cr in Q4 FY25 from INR 9.1 Cr in the year-ago period. However, on a quarter-on-quarter (QoQ) basis, the company’s bottom line shrunk 28% from INR 26.4 Cr. 

Operating revenue zoomed 24% to INR 2,061.8 Cr during the quarter under review from INR 1,667.9 Cr in Q4 FY24. Sequentially, its top line declined 10% from INR 2,267.2 Cr.

While the company’s EBITDA grew 43% YoY to INR 133 Cr, its EBITDA margin expanded 90 basis point YoY to 6.5% in Q4 FY25. Meanwhile, gross merchandise value (GMV) jumped 27% to INR 4,102 Cr. 

Including other income of INR 9 Cr, the company’s total income for the quarter stood at INR 2,070.7 Cr, up 24% YoY and down 9% QoQ. Total expenses rose 23% YoY to INR 2,031.2 Cr. 

For the full fiscal year FY25, Nykaa’s profit surged 82% to INR 72.1 Cr from INR 39.7 Cr in the previous fiscal. Operating revenue grew 25% YoY to INR 7,949.8 Cr.

Beauty Vertical Sees Strong Growth

Akin to quarterly trends witnessed throughout the fiscal year, Nykaa’s beauty vertical continued to be the major growth driver for the company. The segment’s revenue grew 25% YoY to INR 1,849.8 Cr in Q4 FY25.

The beauty vertical of the company constitutes three separate businesses — multi-brand retail business, Nykaa-owned brands (House of Nykaa) and its B2B arm Superstore. 

The GMV of multi-brand retail business shot up 31% YoY to INR 3,058 Cr in FY25. The company said that strong customer acquisition, strengthening of brand partnerships, and expansion of store network were the key growth drivers for the beauty vertical in the March quarter.

The BPC major added that the fiscal year saw it add the highest number of brands under its portfolio. These included the likes of Kerastase, Yves Saint Laurent, Dr.Jart+, among others.

The company aims to maintain the brand launch momentum in FY26. It has already launched brands like Chanel and Nexxus on its platform in the ongoing June quarter. 

For House of Nykaa, the company said its GMV grew 72% YoY to INR 526 Cr during the quarter under review. 

Its portfolio brand Dot & Key reported an EBITDA margin of 14% in FY25, a sharp uptick from 8% in the previous fiscal year. Meanwhile, its flagship makeup brand Nykaa Cosmetics’ GMV grew to INR 350 Cr in FY25. 

For its B2B arm Superstore, the company reported a 57% YoY growth in GMV to INR 941 Cr. Meanwhile, its reach expanded 42% YoY to over 2.76 Lakh transacting retailers at the end of FY25.

Notably, earlier this month, Nykaa received NCLT’s approval to demerge the eB2B business from FSN Distribution to Nykaa E-Retail.

Both the companies are wholly owned subsidiaries of FSN Ecommerce Ventures, the parent of Nykaa.

“This is a pivotal step in Nykaa’s strategy to strengthen its leadership across the entire addressable beauty market in India – in online, offline as well as unorganised offline channels,” the company said. 

Better Days Ahead For Fashion Vertical?

Nykaa’s fashion vertical continued to be a laggard relatively. Its revenue grew 11% YoY to INR 161 Cr during the quarter. In line with the revenue growth, the vertical’s GMV for the quarter also increased 18% YoY to INR 1,037 Cr. 

However, Nykaa said that the fashion vertical saw a healthy uptick in growth in Q4 FY25 and the vertical has entered FY26 with a “good momentum”. Besides, it added that the vertical is showing continuous improvement in profitability. 

In a post-earnings call, Nykaa executive director Anchit Nayar said that the Indian online fashion industry faced a post-COVID correction and thus, continues to remain under-penetrated in India.

“We are confident in our continued momentum. Our business is fashion-first and trend-first, anchoring on marquee brand partnerships. We’re seeing strong traction as brands shift from discount-based to passion-based selling, for which our platform is a natural choice. Structurally, we’ve achieved 200 basis points of non-one-off profitability improvements by addressing leakages and maintaining healthy unit economics,” he said.

On Tuesday (May 27), Nykaa received the NCLT’s approval to merge Iluminar Media (Little Black Book, or LBB) into Nykaa Fashion, both of which are its wholly owned subsidiaries. The move will consolidate Nykaa’s content creation and events businesses within a single entity.

Nykaa had acquired 100% stake in Iluminar Media in September 2022.

Shares of Nykaa ended today’s trading session 0.68% lower at INR 203.25 on the BSE.