Nykaa's Q3 profit jumps over 60% YoY as beauty segment shines

FSN E-commerce Ventures, the parent of beauty and personal care marketplace Nykaa, posted 27% year-on-year growth in its operating revenue as its bottomline swelled by more than 60% in the third quarter of FY25, driven by a boom in the beauty vertical.

The Falguni Nayyar-led company reported operating revenue of Rs 2,267 crore in the quarter ended December 2024, up from Rs 1,788 crore earned a year ago. This is in line with the company's expectations of achieving more than mid-twenties growth in revenue in Q3.

During the same period, its profits grew by 60% to nearly Rs 26 crore from Rs 16.16 crore in Q3 FY24, according to filings made with the exchanges.

The Mumbai-based company also saw its expenses rise by nearly 26% YoY to Rs 2,228 crore in the third quarter, mostly hurt by an increase in employee benefit costs, interest payments, and other expenses.

Its core beauty and personal care vertical delivered a 27% YoY growth in operating revenue to Rs 2,060 crore, helped by its flagship Pink Friday Sale conducted in November 2024.

Nykaa's fashion vertical, which competes with Myntra, Tata Cliq Fashion and Ajio, witnessed a relatively subdued performance of 21% growth in its topline, clocking a revenue of Rs 199 crore in Q3. It had earlier put out its expectations for net sales value for the vertical to trend around the low- to mid-teens helped by growth in content, marketing and service-related income. 

During the quarter, Nykaa Fashion CEO Nihir Parikh stepped down from his position, citing personal reasons. Nykaa is yet to announce a successor. It also appointed ex-Myntra executive Abhijeet Dabas as executive VP and business head to revamp the company's fashion ecommerce and online growth strategy.

Focus on going global

Nykaa has doubled down on setting up units in the GCC region as its international arm grew more than doubled to earn Rs 8.20 crore in revenue, although on a much lower base.

In January, it incorporated Nysaa Cosmetics SPC in Oman to set up domestic and international sales/trade/retail of beauty and personal care products—both online and offline. The new unit, a subsidiary of Nessa International, which in turn is a unit of FSN International, will trade women’s cosmetics, toiletry, and beauty and hair care products, along with perfumes and beauty soaps.

Shares of the company closed 1.69% lower at Rs 170.5 on the NSE. 

(The copy was updated to add expenses.)