Nykaa Projects Beauty Business To Drive Strong Q4 Revenue Growth

FSN E-Commerce Ventures, the parent entity of fashion and beauty retailer Nykaa, has said it witnessed a continued growth momentum in the fourth quarter of FY2025 with consolidated net revenue growth expected to be in the low to mid-20% range year-on-year (YoY).

This puts the company’s full-year revenue growth also in the mid-20s, reflecting consistent performance across all quarters of the fiscal year.

The beauty vertical remained a key growth driver, with the gross merchandise value (GMV) projected in the low 30% range significantly ahead of industry benchmarks. 

“Nykaa’s full financial year FY25 revenue growth is estimated to be at similar levels in mid twenties, indicating consistent growth across all quarters of FY25,” FSN E-Commerce said in an exchange filing.

Furthermore, Nykaa said that factors, including investment in customer acquisition, expanding retail network and growing success of House of Nykaa have contributed to the growth of the beauty vertical.

The company claimed to have launched nineteen stores in the quarter under review.

On its fashion vertical, Nykaa is estimating the GMV growth for the quarter to be in the high teens. However, the net revenue growth will be lower due to muted performance and less content related activity in this vertical.

It is pertinent to note that Nykaa’s fashion segment was a loss making entity in Q3 FY25. However, it managed to trim loss by 12.3% YoY to INR 25.41 Cr.

Nykaa’s consolidated net profit for the third quarter of FY25 jumped 51% to INR 26.4 Cr from INR 17.5 Cr in the similar quarter last year. Meanwhile, its operating revenue also surged 26.74% to INR 2,267.2 Cr in Q3 FY25  from INR 1,788.8 Cr in the corresponding period last year. 

Nykaa’s Q4 Trek

While Nykaa had much movement in terms of expansion in the previous quarters, Q4 FY25 saw the company cashing in on these investments. 

In the filing, Nykaa said that its Q4 beauty vertical growth comes at the back of “investments in customer acquisition over the past several quarters leading to consistent order volume growth.” 

In the December quarter, the company acquired a majority stake in beauty and personal care brands Earth Rhythm and Dot & Key. These additions to the ‘House of Nykaa’ pushed its GMV upwards by 49% YoY to INR 468.6 Cr in Q3 FY25.

In January, Nykaa also incorporated a new wholly-owned subsidiary, Nysaa Cosmetics SPC, in Oman. The new subsidiary has been set up with an initial investment of OMR 30,000 (INR 6 Lakh). Nykaa’s subsidiary Nessa International will own 100% stake in the newly floated company.