Nykaa expects 23% revenue growth and GMV rise in Q1FY25; stock rise 3%

In a stock exchange notification on July 7, Nykaa said that the company, along with its subsidiaries, expects its revenue growth to be 22-23% in Q1FY25 compared with the year-ago period.

Nykaa added that the June quarter growth in gross merchandise value (GMV) is expected to be in the mid-20s on a year-on-year basis. GMV is the total value of merchandise sold over a given period of time on the e-commerce website.

Giving a segment-wise break-up, Nykaa said that revenue growth for the beauty segment for the quarter is expected to be around 22-23%, similar to the consolidated entity’s revenue growth. However, GMV growth is expected to be higher, in the high 20s, in line with the long-term growth trajectory of the beauty and personal care (BPC) industry.

“This is despite relatively slower growth in our physical retail business which was impacted by elections as well as heatwaves across North India,” the company said in the statement.

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

For the fashion segment, Nykaa expects revenue growth of around 20% y-o-y in Q1 FY25. GMV growth for the segment is expected to be lower at mid-teens for the quarter.

“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 company said.

Nykaa’s fashion segment consists of the Nykaa Fashion platform and fashion-owned brands, as well as its content platform LBB and the Nykaa Man lifestyle business.

On Monday, the Nykaa stock gained as much as 2.8% to hit an intraday high of ₹182.1 per share on the NSE. Year-to-date, the stock is up just 4%, while it has risen 28% in the past year.