Nykaa Reports Strong Q3 FY25 Growth with 27% Revenue Surge and Expansion in Beauty & Fashion Segments
FSN E-Commerce Ventures Limited, popularly known as Nykaa, has recently unveiled its financial results for the third quarter of FY25, showcasing impressive growth across its beauty, fashion, and retail segments. The company’s consolidated Gross Merchandise Value (GMV) surged by 25% year-over-year (YoY), reaching an impressive Rs. 45,279 million. More notably, revenue from operations experienced a robust 27% YoY increase, totaling Rs. 22,672 million. This remarkable performance is underscored by a significant 42% YoY rise in EBITDA, amounting to Rs. 1,408 million, which has led to an expansion in EBITDA margins from 5.5% to 6.2%. Additionally, profit before tax soared by 68% YoY to Rs. 446 million, while net profit for the period climbed by 51% YoY, reaching Rs. 264 million.
Accelerated Growth in the Beauty Vertical
Nykaa’s beauty vertical has demonstrated exceptional momentum, recording a staggering 32% YoY growth in GMV, which amounted to Rs. 33,899 million. This growth can be attributed to a significant increase in its customer base, with cumulative beauty customers reaching 32 million and the One Nykaa platform expanding to 40 million users. Order volumes have also seen the highest growth in the past nine quarters, up by 30% YoY. Nykaa’s offline presence continues to strengthen its position as India’s largest beauty retail network, with 221 stores across 73 cities. Over the past year, the company added 47 new outlets, increasing its retail footprint by 31% YoY, and now boasts a retail space of 2.1 lakh square feet. This includes flagship stores that offer premium shop-in-shop experiences and differentiated beauty services, which have contributed to higher average order values (AOVs) and profitability.
Expanding Global Brand Portfolio
In its quest to bring global beauty brands to India, Nykaa launched over 200 new names in Q3 FY25, including renowned international brands such as Kérastase, NARS, Tirtir, Axis-Y, and Eucerin. Many of these brands have quickly secured spots among the top 100 brands on the platform. Furthermore, Nykaa’s in-house brands, under the "House of Nykaa" umbrella, continue to scale impressively. Since its IPO, this portfolio has grown threefold, with an annualized GMV run rate of Rs. 24,000 million, of which beauty contributes Rs. 19,000 million.
Success of Flagship Beauty Brands
Nykaa’s flagship beauty brands—Nykaa Cosmetics, Kay Beauty, and Dot & Key—are performing exceptionally well, reflecting strong customer demand. Dot & Key, which was acquired by Nykaa, has emerged as one of the most successful acquisition stories in Indian beauty, scaling 15x in the last three years and achieving an annualized GMV run rate of Rs. 9,000 million and an NSV run rate of Rs. 5,100 million, with strong profitability. To further strengthen its brand presence, Nykaa Cosmetics has introduced Bollywood’s rising star Rasha Thadani as its new face, aiming to inspire self-expression and elevate beauty standards through innovative, high-performance products. Meanwhile, Kay Beauty, co-founded by Bollywood actress Katrina Kaif, celebrated its fifth anniversary this quarter, witnessing a fourfold increase in GMV over the past three years, reaching an annualized GMV of Rs. 3,300 million. The brand’s offline presence spans over 150 cities, including 221 Nykaa stores and more than 520 other retail locations.
Growth in B2B Beauty Distribution
Nykaa’s B2B beauty distribution arm, Superstore by Nykaa, has recorded remarkable growth with a 53% YoY increase in GMV. Within just three years of operations, the platform has scaled 12x, crossing Rs. 10,000 million in annualized GMV and serving over 256,000 retailers in more than 1,100 cities and towns. Improved contribution margins, higher featured brand shares, and increased ad revenues have enhanced profitability, with contribution margins improving to -12.1% from -17.2% a year ago.
Steady Performance in Fashion Segment
Nykaa Fashion also demonstrated resilience, achieving a steady 21% YoY revenue growth despite a challenging demand environment, with GMV increasing by 8% YoY. The platform’s content-driven approach, bolstered by its acquisition of Little Black Book (LBB), has contributed to its expansion. Successful marketing campaigns such as Nykaaland and ‘Nykaa Wali Shaadi’ have significantly boosted brand visibility and engagement. Gross margins improved notably to 51.3% in Q3 FY25 from 43.9% a year ago, aided by a rise in content income and revenue from services. The company’s efforts to enhance cost efficiencies across fulfillment and distribution have also contributed to improving EBITDA margins, which now stand at -5.4% compared to -7.3% in Q3 FY24.
Nykaaland 2024: A Landmark Event
Nykaaland 2024, India’s premier beauty and lifestyle festival, witnessed a remarkable 1.7x increase in footfall, attracting over 25,000 attendees. The event featured masterclasses by global beauty experts such as Sofia Tilbury and Patrick Ta, alongside major brand launches from Clinique, Sol de Janeiro, and GHD. The debut of Foot Locker in India and exclusive fashion showcases from brands like Revolve and Cover Story further reinforced Nykaa’s expanding influence in both beauty and fashion.
Conclusion
Nykaa’s consolidated results, which include the performance of its wholly owned subsidiaries and key brands—Dot & Key, Kay Beauty, and Earth Rhythm—highlight the company’s unwavering commitment to innovation, expansion, and customer engagement. With a robust growth trajectory and strategic initiatives in place, Nykaa is poised to continue its leadership in the beauty and fashion sectors, catering to the evolving needs of its diverse customer base.