Nykaa shares surge by 5% on positive Q2 results; check stock reaction and more

Shares of Nykaa, owned by FSN E-Commerce Ventures, saw a surge of up to 5% on Wednesday, November 13, following the company’s announcement of quarterly results for the Q2 FY25 on Tuesday, reaching a high of ₹188 apiece during the early morning trade at around 9:20 am. The stock has grown by 18% in the last one year.

The shares of the company are currently trading 1.81% lower at ₹174.59 at 11:55 pm on Wednesday on the NSE.

The company reported a significant 71.6% year-on-year (YoY) increase in its consolidated net profit for Q2 FY25, hitting ₹10.04 crore as compared to ₹5.85 crore in the same period last year. The company’s revenue from operations for the quarter rose by 24.4% to ₹1,874.74 crore, up from ₹1,507.02 crore in Q2 FY24.

Nykaa's beauty segment continued to drive growth, with revenues growing by 24% YoY to ₹1,703 crore and a gross merchandise value (GMV) increase of 29% YoY to ₹2,783 crore. The fashion segment also saw a 22% increase in revenues, reaching ₹166 crore. The company posted a 29% YoY increase in its EBITDA, registering ₹103.7 crore with an improved margin of 5.5%.

Marketing expenses for the company totalled ₹236.5 crore, registering a YoY increase of 40%. Experts suggest that there is an overall slowdown in the industry.

The company announced its financial results for the quarter after market closing. Shares of the company closed 2.09% lower at 179.01 apiece on Tuesday, November 12, on the NSE.

About the company

Launched in 2012, Nykaa “tapped into an underserved beauty retail market, disrupting the ecosystem and putting India in the global spotlight” as per a press release by the company.

Today, the company has a market capitalisation of ₹50,239.60 crore and has expanded its services to include lifestyle and B2B by introducing several digital platforms including Nykaa Fashion, Nykaa Man and Nykaa Superstore.

The company organises an extravagant beauty festival called Nykaaland. The second edition of the festival, Nykaaland 2024, saw an impressive footfall of over 25,000 footfall beauty enthusiasts, a 1.7 times increase from the previous year, the release stated.

Reportedly, Nykaa holds more than 35% market share in the online Beauty and Personal Care (BPC) industry in India.

“For its role in building India’s beauty and lifestyle retail markets, Nykaa has been awarded several Indian and International accolades and was proudly featured in the TIME100 Most Influential Companies List” the release noted.