Nykaa parent FSN E-Commerce Ventures Ltd. has witnessed a strong performance in the July-September quarter, with consolidated net revenue growth of mid-twenties, according to provisional figures released by the company.
Nykaa's beauty vertical has delivered robust net revenue as well as net sales value growth in the mid-twenties, with GMV growth even higher.
Strong overall performance was seen across omnichannel retail businesses, owned brands, as well as eB2B distribution businesses, ahead of the festive season, according to a business update.
Dot & Key, a rapidly growing skincare brand under Nykaa, has also seen significant expansion, with Nykaa increasing its ownership stake to 90% at the start of the financial year, further contributing to the overall success.
In the fashion segment, net sales value growth was in the early teens. Nykaa's content platform, LBB, which was acquired as part of its strategy to boost engagement, has shown impressive performance. This has pushed the fashion vertical's revenue growth to the early twenties for the quarter.
"The beauty ecosystem in India continues to experience rapid expansion, fuelled by accelerating demand and supported by rising per capita income and consumption. The fashion industry is expected to experience similar growth momentum in the longer term," the company said in an exchange filing.
However, consumption has witnessed subdued demand in the first half of this financial year but the industry expects to see a gradual revival during the second half, driven by the festive and wedding seasons.
Nykaa Q1 Performance
Nykaa parent FSN E-Commerce Ventures Ltd.'s net profit rose in the first quarter of fiscal 2025.
Its net profit rose 50% quarter-on-quarter to Rs 13.6 crore in the quarter ended June. This compares to Rs 9.07 crore net profit in the fourth quarter of fiscal 2024.
Revenue rose 4.7% quarter-on-quarter to Rs 1,746.1 crore in the April–June quarter, meeting the estimate of Rs 1,763 crore.
Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 3% QoQ to Rs 96.1 crore. The Ebitda margin narrowed to 5.5% from 5.6% in the previous quarter.
Shares of the Nykaa's parent company, FSN E Commerce Ventures, closed 1.19% higher at Rs 195.55 apiece, compared to a 0.97% decline in the NSE Nifty 50. The stock has risen 11.56% year-to-date and 29.84% over the past 12 months.
Of the 24 analysts tracking the company, 13 have a "buy" rating on the stock, six recommend a "hold" and five suggest a "sell", according to the Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 5.9%.
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