In its quarterly update, Nykaa said that the beauty division saw strong performance, with both net revenue and net sales value (NSV) rising in the mid-20% range
Nykaa’s fashion vertical continued to lag behind, with its NSV growing in the low teens
The company said that there was a slight slowdown in consumption in the first half of FY25, but it remains optimistic about demand rebounding in the second half
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Beauty and fashion ecommerce major Nykaa said its consolidated net revenue grew in “mid-twenties” in the second quarter of the ongoing financial year 2024-25 (FY25).
In its quarterly update, Nykaa said that the beauty division saw strong performance, with both net revenue and net sales value (NSV) rising in the mid-20% range. It added that the growth in gross merchandise value (GMV) was even higher.
“Strong overall performance was seen across omnichannel retail business, owned brands as well as eB2B distribution business, ahead of the festive season. Dot & Key, a new age skincare brand, continues to experience rapid growth, with Nykaa expanding ownership to 90% at the beginning of this financial year,” the Falguni Nayar-led company said
However, Nykaa’s fashion vertical continues to lag behind. The NSV of the fashion segment grew in the low teens. Its overall revenue growth reached low 20%, which, the company said, was partly driven by the acquisition of its content platform Little Black Book (LBB).
It is pertinent to note that Nykaa decided to merge LBB with Nykaa Fashion earlier this year.
The company said that there was a slight slowdown in consumption in the first half of FY25, but it remains optimistic about demand rebounding in the second half, supported by festive and wedding seasons.
Nykaa’s fashion vertical has been proving to be a laggard for the last few quarters amid rising competition. In Q1 FY25, the GMV of the fashion segment rose only 15% year-on-year (YoY) to INR 774.1 Cr
Overall, the company’s consolidated net profit jumped almost 152% to INR 13.6 Cr in the first quarter of FY25 from INR 5.4 Cr a year ago. Operating revenue grew 22.8% to INR 1,746.1 Cr in the reported quarter from INR 1,421.8 Cr in Q1 FY24.
Nykaa is looking to further shore up its revenue by expanding to the Middle East. As part of this push, it recently incorporated two new subsidiaries in Qatar and Saudi Arabia under the brand name Nysaa.
Shares of Nykaa ended Monday’s (October 7) trading session 0.9% higher at INR 193.95 on the BSE amid a bloodbath in new-age tech stocks.
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