Nykaa Q1 FY25 Results: Beauty platform expects consolidated revenue to rise 22%-23% in June quarter

In an exchange filing on the April-June quarter revenue update, the company said that for the consolidated entity, the gross merchandise value (GMV) growth for the quarter is in the mid-20s YoY.

FSN E-Commerce Ventures also informed that vertical-wise segmental reporting is commencing this quarter.

"Nykaa - FSN E-Commerce Ventures Limited along with its subsidiaries, that is the consolidated entity expects its revenue growth to be around 22-23 per cent YoY in Q1 FY2025," the company said.

For beauty vertical, the revenue growth for latest June quarter is projected to be around 22% to 23% YoY, alike consolidated entity's revenue growth.

"GMV growth is expected to be higher, in the high twenties YoY, in line with long-term BPC (Beauty and Personal Care) industry growth-trajectory. This is despite relatively slower growth in our physical retail business which was impacted by elections as well as heatwaves across North India," it said.

The company, however, flagged the soft demand environment in the Indian fashion industry.

"The overall fashion industry in India continues to face challenges with a muted demand environment. The growth was further impacted in this seasonally weak quarter due to limited weddings and festivities," the firm said.

The fashion vertical is projected to offer a healthy performance, with revenue growth of around 20% YoY. GMV growth for Q1 FY25 is expected to be lower at mid-teens YoY.

The beauty segment comprises the online beauty platform Nykaa, beauty-owned brands, and physical stores. It additionally includes the eB2B distribution business 'Superstore by Nykaa' and the Nykaa Man BPC business.

The fashion segment comprises the Nykaa Fashion platform and fashion-owned brands, as well as LBB (Little Black Book), the content platform, and the Nykaa Man lifestyle business.