Beauty behemoth Nykaa, steered by parent company FSN E-Commerce, has showcased a resilient close to the fiscal year 2025, with its core cosmetics and personal care arm maintaining a robust upward trajectory. While the overall revenue growth for the quarter is projected to settle in the lower to mid-twenties percentage range compared to the prior year, the beauty division remains a significant driver of expansion.
Industry observers note that Nykaa’s beauty segment has outperformed general market trends, fueled by assertive strategies to attract new consumers, consistent sales within its physical store network, and increasing popularity of both its proprietary and acquired labels housed under the ‘House of Nykaa’ umbrella. The company further solidified its brick-and-mortar presence by inaugurating 19 new retail locations during the period, expanding its reach across the nation.
The fashion arm of Nykaa, while demonstrating signs of resurgence, has not mirrored the rapid growth experienced by its beauty counterpart. Gross Merchandise Value (GMV) growth for the fashion segment is anticipated to be in the high teens, with a gradual improvement observed in its primary platform’s performance. Sources indicate that a slower uptake in its in-house fashion brands and a reduction in content initiatives, typically more prominent during the festive third quarter, contributed to a less buoyant revenue outcome for this division.
Looking back at the preceding quarter (Q3 FY25), Nykaa had reported a substantial surge in profitability, more than doubling its profits quarter-on-quarter to ₹26.41 crore. The beauty sector then registered a notable 32% increase in GMV, reaching ₹3,389 crore, alongside a 27% year-over-year revenue climb to ₹2,060 crore.
In contrast, the fashion business recorded a GMV of ₹1,129.9 crore in the same period, marking an 8% annual increase. Over the past three fiscal years, the fashion division has witnessed considerable revenue expansion, growing from ₹133.9 crore in FY23 to ₹199 crore in FY25. Despite this solid operational performance, initial investor reaction appeared muted, with FSN E-Commerce shares experiencing a slight dip in early Monday trading.
