Nykaa shares slide after incorporating 'beauty & personal care' unit

Shares of FSN E-Commerce Ventures are down nearly 30 per cent since its peak in August last year

Shares of FSN E-Commerce Ventures  -- parent entity of Nykaa -- tumbled over 3 per cent in trade on Wednesday after it incorporated its unit Nykaa Essentials Private Limited, which will solely be in the beauty and personal care business. 

 

Nykaa's counter plunged as much as 3.37 per cent during the intraday trade to Rs 160.2 per share, the biggest intraday fall since February 10 this year. The stock posted some recovery later in trade and was 2 per cent lower at Rs 162.4 apiece, compared to a 0.65 per cent fall in Nifty 50 as of 12:05 PM. 

 

Shares of the e-commerce company are down nearly 30 per cent since its peak in August last year, and has generated nearly zero returns, thus far, in calendar year in 2025. The stock delivered a 5.6 per cent loss in CY-2024. Since its listing in November 2021, shares of the company have fallen nearly 55 per cent.   ALSO READ: Nifty Private Bank index up 1% in weak market; IndusInd, Kotak, HDFC lead

 

The main object of the new subsidiary is to trade and deal in all kinds of cosmetics, toiletries, beauty, personal care and health care products, lifestyle products, perfumery products and other related goods, the company said in an exchange filing on Tuesday. The parent will hold 100 per cent of the shareholding of Nykaa Essentials and the unit is yet to commence operations, it said in the statement. 

 

The authorised share capital of Nykaa Essentials is Rs 100 million and the paid-up share capital will be Rs 5 lakh. The company also clarified that the incorporation does not fall under related party transactions. 

 

December quarter earnings

 

The E-commerce company's profit before tax jumped 68.21 per cent year-on-year (Y-o-Y) to Rs 44.56 crore during the quarter. Operating income grew 42.51 per cent to Rs 140.8 crore during the quarter, compared with Rs 98.8 crore in Q3 FY24. Ebitda margin rose by 69 bps to 6.2 per cent in Q3 FY25 as against 5.5 per cent in Q3 FY24. 

 

The beauty vertical recorded a 32 per cent Y-o-Y gross merchandise value (GMV) growth, reaching Rs 3,389.9 crore in Q3 FY25.  Nykaa now operates India's largest beauty retail network with 221 stores across 73 cities, adding more than 47 stores in the past year. The retail space has grown 31 per cent Y-o-Y to 2.1 lakh square feet, with larger flagship stores.