Nykaa Q2 Results: Net profit rises 72% YoY, revenue up 24% | Key highlights

FSN E-Commerce Ventures, the company that owns and operates the popular beauty brand Nykaa, announced its consolidated net profit at ₹10.04 crore for the quarter ending September 2024 (Q2 FY25), increasing 71.6% year-over-year (YoY) from ₹5.85 crore in the same quarter of the previous year. The company registered a 4.1% increase in its net profit, up from 9.64 crore in Q1 FY25, reporting its quarterly results for the July-September quarter on Tuesday, November 12.

Shares of the company closed 2.09% lower at 179.01 apiece on Tuesday on the NSE.

Key highlights

• The company’s consolidated revenue from operations for Q2 FY25 stood at ₹1,874.74 crore, rising by 24.4% from ₹1,507.02 crore posted in the year-ago period.

• Total expenses stood at ₹1,858.93 crore for the quarter ending September, marking a 23.7% increase as compared to ₹1,502.33 crore reported in the same quarter of last year.

• Marketing expenses for the company totalled ₹236.5 crore, registering a YoY increase of 40%.

• Fulfilment costs accounted for 9.3% of revenue, showing a small improvement from 9.7% in September 2023.

• The gross merchandising value (GMV) for the reporting quarter stood at ₹3,652.5 crore, showing a 24% YoY growth.

• The firm posted a 29% increase in its Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) at ₹103.7 crore with its margin up by 18 bps YoY to 5.5%.

Segment wise growth

The beauty segment of the firm grew 24% YoY in revenues, hitting ₹1,703 crore in the July-September quarter. The segment’s GMV grew by 29% YoY reaching ₹2,783 crore in the reporting quarter.

The fashion segment witnessed a 22% YoY growth in revenues, reaching ₹166 crore. The GMV for the sector saw an increase of 10% YoY, hitting a total of ₹863 crore.

Beauty sector growth

Announcing its quarterly results on Tuesday, Nykaa reported that its investments in acquiring new customers are paying off as the company observed a strong 31% YoY growth in the quarter ending September. Notably, the premium fragrance segment within the beauty category outpaced overall platform growth during the period.

“This was fuelled by new customer acquisition growth of 31% YoY, bringing Nykaa's cumulative beauty customer base to 30 million and One Nykaa cumulative base to 37 million. This contributed to a 22% YoY rise in annual unique transacting customers and a 24% YoY increase in total orders,” the company said in a release.

According to Nykaa, the company has solidified its position as India’s largest beauty retail network, now operating 210 physical stores across 72 cities. The company has expanded its retail footprint by approximately 25% YoY. This includes the opening of two flagship stores in Mumbai and Delhi.

“Nykaa Beauty Vertical continues to bring exciting new global brands to the country, launching 170+ new brands in Q2 FY2025. Some examples include YSL Beauty, one of the most renowned luxury colour cosmetics brands from L’Oreal, which was launched only on Nykaa. Dr Jart+, a Korean skincare brand from The Estee Lauder Company, is available only on Nykaa,” the release added.