Fashion ecommerce giant Nykaa's net profit rises 61% to Rs 26 crore in Q3FY25, revenue up 27%

Nykaa, the online beauty and fashion retailer owned by FSN E-Commerce Ventures, has reported strong earnings for the quarter ended December 31, 2024 (Q3FY25). 

The company’s net profit rose 61.3% year-on-year to Rs 26.41 crore, compared with Rs 17.45 crore in the same period last year. This also marks a significant jump from the Rs 12.97 crore profit recorded in the previous quarter.

Revenue growth and expenses

Nykaa’s consolidated revenue from operations grew 26.7% year-on-year to Rs 2,267 crore, up from Rs 1,788.8 crore in the same quarter last year. The majority of this came from its beauty segment, which contributed 90.9% of total revenue at Rs 2,060 crore.

Despite higher costs, including materials, employee benefits, finance and marketing expenses, Nykaa managed to maintain healthy profitability.

The company’s total expenses rose to Rs 2,228 crore, compared to Rs 1,769.89 crore a year ago. However, as a result of growing scale and efficient operations, earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 42.5% to Rs 140.8 crore.

Performance across segments

The beauty business saw a 32% year-on-year increase in gross merchandise value (GMV) to Rs 3,389.9 crore, helped by strong customer growth and orders. 

Nykaa said its cumulative beauty customer base grew to 32 million, with a total base of 40 million for its One Nykaa loyalty program.

The company’s flagship Pink Friday Sale recorded 36% year-on-year growth, drawing nearly 86 million visits over a 10-day period.

In contrast, the fashion division registered a GMV of Rs 1,129.9 crore, reflecting 8% growth year-on-year. This segment also benefited from cost efficiencies, which improved overall profitability. The brand attributes part of this success to strong marketing campaigns and events such as Nykaaland and Nykaa Wali Shaadi.

Physical stores and B2B expansion

Nykaa opened 12 new stores during the quarter, taking its total count to 221 across India. It also reported that 70% of beauty orders were delivered on the same day or the next day in the top 110 cities.

The company’s distribution arm, Superstore by Nykaa, reported a 52.7% year-on-year GMV growth to Rs 259.7 crore and crossed the Rs 1,000 crore annual run rate mark in just three years. The contribution margin for Superstore improved to -12.1% in Q3 FY25 from -17.2% a year ago.

Acquisitions and investments

Nykaa has increased its stake in Dot & Key to 90% with an additional investment of Rs 265.3 crore.

The company also acquired a majority stake in Earth Rhythm after its initial investment in 2022. These moves align with Nykaa’s strategy to expand its portfolio of beauty and personal care brands.