Nykaa's parent company, FSN E-Commerce Ventures, has announced its Q4FY25 results, showcasing significant growth in net profit and revenue. The company's consolidated net profit nearly tripled, surging 192% year-over-year to reach ₹20.28 crore, a substantial increase from ₹6.93 crore in the corresponding quarter of the previous fiscal year. Revenue from operations also saw a healthy rise, increasing by 23.6% to ₹2,061.76 crore compared to ₹1,667.98 crore in Q4FY24.
Key Financial Highlights
Segment Performance
Nykaa's core beauty and personal care (BPC) business continued to be a key growth driver. The beauty vertical's Gross Merchandise Value (GMV) stood at ₹11,775 crore in FY25, marking a 30% year-over-year increase. Several factors contributed to this impressive growth, including strategic investments in customer acquisition, robust retail performance, and the expansion of the retail network. In Q4 FY25 alone, Nykaa added 19 new retail stores. The company's distribution business, Superstore by Nykaa, also experienced strong GMV growth of 57% YoY in FY25, reaching ₹941 crore. This B2B platform now serves over 276,000 retailers across nearly 1,100 cities and towns. Revenue from the beauty segment stood at ₹1,894.76 crore in Q4FY25, a 24.64% jump YoY.
The fashion segment also showed positive momentum, with revenue rising 10.77% YoY to ₹161 crore in Q4FY25.
Overall Business Performance
Nykaa's overall performance in FY25 demonstrates consistent growth across various quarters. The company's consolidated revenue growth for the fiscal year is estimated to be in the mid-twenties, indicating a steady upward trajectory. The beauty vertical's GMV growth is expected to remain significantly ahead of the industry average.
Analysts' Perspectives
Analysts at Kotak Institutional Equities (KIE) had projected a strong performance for Nykaa in Q4FY25, estimating a 24% year-on-year growth in GMV and a 28% increase in revenue. They expected this growth to be primarily driven by the BPC segment, with contributions from the fashion segment as well. Kotak also anticipated a stable sequential EBITDA margin of 6.2%, reflecting a year-on-year expansion of 60 basis points.
ICICI Securities had forecasted a 35.2% year-on-year growth in Nykaa's consolidated EBITDA to ₹126.1 crore in Q4FY25, with an expected improvement in EBITDA margin to 6.1%.
JM Financial had projected Nykaa's overall GMV to grow 27% year-on-year in Q4FY25, with the core BPC segment growing by 27.8%. They had forecast consolidated revenue to rise 23.9% year-on-year.
Stock Market Reaction
On May 30, 2025, Nykaa's shares were trading at ₹204.93 on the NSE, up 0.21%. However, some sources indicated a nearly 2% drop in share price to Rs 201. The stock has fluctuated between a 52-week low of Rs 150 and a high of Rs 230.
Future Outlook
Nykaa's focus on enhancing its omni-channel retail strategy, expanding its offline presence, and investing in technology to improve customer experience are expected to drive future growth. The company's expansion into new product categories and markets, along with strategic partnerships, are also likely to contribute to its upward trajectory.
Challenges and Considerations
Despite the positive results, Nykaa faces challenges such as competition in the e-commerce market and the need to balance growth with profitability. The company's share price has experienced volatility in the past, reflecting market sentiment and investor expectations. Sequentially, the company's profit declined 22.36% as in Q3FY25. Consolidated revenue from operations in Q4FY25 decreased 9% QoQ against Q3FY25.
Conclusion
Nykaa's Q4FY25 results demonstrate a strong performance, driven by growth in its core beauty and personal care business. The company's increasing profitability and revenue, along with its strategic investments in customer acquisition and retail expansion, position it well for future growth in the rapidly evolving e-commerce market.
