Nykaa's growth prospects are adequately captured in its stock price

Nykaa posted strong BPC performance in Q4 FY25, but regulatory risks and intense competition may slow margin expansion, with analysts seeing limited upside in its stock

FSN E-Commerce Ventures’ (Nykaa’s) revenue for the January-March quarter Q4FY25 at ₹2,060 crore, up 23.6 per cent year-on-year (Y-o-Y), was in line with consensus estimates. The beauty and personal care (BPC) (₹1,895 crore) and fashion (₹161 crore) segments reported net sales value (NSV) growth of 25 per cent and 13 per cent Y-o-Y, respectively. The earnings before interest, taxes, depreciation, and amortization (Ebitda) margin expanded 80 bps Y-o-Y to 6.5 per cent. Profit after tax (PAT) came in at ₹19.1 crore, lower than consensus with higher tax rates leading to a miss. The operating cash flow was ₹470 crore with