Nykaa Announces Q2 FY25 Results, Records Revenue Growth Over 20%, Fashion Division Paces Down

Nykaa, a leading beauty and fashion ecommerce company, stated its consolidated net revenue increased in the “mid-twenties” in the second quarter of the current fiscal year 2024-25.

In its quarterly update, Nykaa stated that the beauty segment performed well, with both net revenue and net sales value (NSV) increasing by the mid-20% mark. It further said that the increase in gross merchandise value (GMV) was considerably greater.

“Prior to the festive season, strong overall performance was recorded throughout omnichannel retail, owned brands, and eB2B distribution. Dot & Key, a new generation skincare brand, continues to see significant growth, with Nykaa growing ownership to 90% at the beginning of this fiscal year,” the Falguni Nayar-led firm stated.

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However, Nykaa’s fashion vertical continues to fall behind. The NSV for the fashion segment increased in the low teens. Its overall sales growth reached a low 20%, which the business attributed to the acquisition of its content platform Little Black Book (LBB).

It is worth noting that Nykaa chose to integrate LBB with Nykaa Fashion earlier this year.

The company reported a modest dip in consumption in the first half of FY25, but it is optimistic that demand would return in the second half, boosted by the festive and wedding seasons.

Nykaa’s fashion vertical has been a laggard in recent quarters, with increased competition. In Q1 FY25, the GMV of the fashion industry increased barely 15% year on year (YoY) to INR 774.1 crore.

Overall, the company’s consolidated net profit increased by about 152% to INR 13.6 Cr in the first quarter of FY25, from INR 5.4 Cr a year earlier. Operating revenue increased by 22.8% to INR 1,746.1 crore in the reporting quarter, from INR 1,421.8 crore in Q1 FY24.

Nykaa is trying to increase its revenue by expanding into the Middle East. As part of this strategy, it has established two new subsidiaries in Qatar and Saudi Arabia under the Nysaa brand name.

Nykaa shares closed Monday’s (October 7) trading session 0.9% higher at INR 193.95 on the BSE, amid a slaughter in new-age technology equities.