Nykaa Q2 results: Net profit rises 67% to Rs 13 cr, revenue up 24%

FSN E-Commerce Ventures, the parent company of beauty and fashion brand Nykaa, on Tuesday reported a 67 per cent rise in its net profit to Rs 13 crore for the second quarter of financial year 2025 (Q2FY25), compared to Rs 7.8 crore in the year ago period. 

 

Growth was bolstered by robust revenues across its beauty and fashion businesses. However, sequentially, profit fell four per cent from Rs 13.6 crore a quarter ago, according to regulatory filings.

 

The company’s consolidated revenue from operations grew 24 per cent Y-o-Y to Rs 1,875 crore, up from Rs 1,507 crore a year ago and Rs 1,746 crore in Q1 FY25. Nykaa’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 29 per cent Y-o-Y to Rs 1,037 million in Q2 FY25.

 

 

The firm’s total expenses for the quarter came in at Rs 1,859 crore, up from Rs 1,502 crore in the year ago period, and Rs 1,731 crore a quarter ago. The firm’s beauty vertical recorded a 29 per cent Y-o-Y GMV growth, reaching Rs 2,783 crore in Q2FY25, fuelled by new customer acquisition growth of 31 per cent Y-o-Y.

 

This brought Nykaa’s cumulative beauty customer base to 30 million and its cumulative base to 37 million.

 

This increase contributed to a 22 per cent Y-o-Y rise in annual unique transacting customers and a 24 per cent Y-o-Y increase in total orders.

 

Now the company claims to operate “India’s largest beauty retail network” of 210 physical stores spanning 72 cities”.

 

“There was 25 per cent Y-o-Y growth in retail space, including two new flagship stores launched in Mumbai and Delhi,” the company said.

 

Nykaa’s distribution business Superstore continued to see strong GMV growth of 80 per cent Y-o-Y as it expanded its operations across the country. The business’ contribution margin improved by 862 bps Y-o-Y, to -11.5 per cent in Q2FY25 from -20.1 per cent in Q2FY24.

 

Superstore serves over 235,000 transacting retailers across over 1,060 cities and towns.

 

Nykaa’s fashion business witnessed a healthy revenue growth of 22 per cent Y-o-Y, while its gross merchandise value (GMV) grew 10 per cent. Its ‘First in Fashion’ segment, representing new season sales, grew 26 per cent.

 

Nykaa’s acquisition of LBB, its content platform business, continued to perform well, driving overall higher revenue growth for the fashion vertical, the company said.

The company said its fashion vertical continued to show improvement in profitability with cost efficiencies across several cost items.

 

“Gross margins saw an improvement in gross margin by 567 bps Y-o-Y in Q2FY25, reaching 49.7 per cent, benefiting from increased content income from LBB along with improvement in other services related income,” Nykaa said.