Nykaa’s beauty vertical growth has accelerated compared to previous quarters, with net revenue growth higher than the mid-twenties
Shares of FSN E-Commerce Ventures surged by 5.3% to an intraday high of Rs 176.50 on the BSE today, following the company’s announcement of a strong third-quarter performance, with net revenue growth expected to exceed the mid-twenties.
In an exchange filing, the company stated that Nykaa (FSN E-Commerce Ventures Ltd., including its subsidiaries) experienced robust growth in Q3 FY2025, with consolidated net revenue growth likely to surpass the mid-twenties, outpacing the consolidated GMV growth for the same period. This suggests a positive trend in translating GMV into net revenue.
Segment-wise, Nykaa’s beauty vertical has seen an accelerated performance compared to previous quarters, with net revenue growth exceeding the mid-twenties. The beauty segment’s GMV growth is expected to be in the low thirties, indicating strong momentum across Nykaa’s beauty businesses, including its e-commerce platform, retail stores, owned brands, and eB2B distribution.
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Customer acquisition for Nykaa continued to grow rapidly, with the Superstore by Nykaa (the company’s eB2B distribution business) seeing notable expansion. This segment now accounts for 8% of the beauty vertical’s GMV (up from 7% last year) and serves around 260,000 transacting retailers across 1,100+ cities.
The fashion vertical is expected to see a net revenue growth of around 20%, with NSV growth projected to be in the low-to-mid teens, reflecting strong growth in content, marketing, and service-related income. While online fashion demand has remained subdued, the company remains optimistic about the long-term growth prospects.
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Nykaa (FSN E-Commerce Ventures) is one of India’s leading lifestyle-focused consumer technology platforms. Since its inception, Nykaa has expanded its product offerings, including the launch of online platforms Nykaa Fashion, Nykaa Man, and Superstore.
In Q2 FY25, the company’s consolidated net profit surged by 66.28% to Rs 12.97 crore, supported by a 24.4% rise in revenue from operations, which reached Rs 1,874.74 crore, compared to Q2 FY24.
Over the past year, Nykaa’s shares have remained relatively flat with a positive bias, though they have declined by 1.3% in the last six months and by nearly 9% over the past three months.
