FSN E-Commerce Ventures Ltd, the parent company of Nykaa, reported a sharp 63% year-on-year surge in consolidated net profit to Rs 34 crore for the September quarter (Q2 FY25), driven by robust consumer demand across its beauty and fashion verticals. Revenue from operations climbed 22% to Rs 1,856 crore, buoyed by higher order volumes, improved operating leverage, and strong festive season momentum. The company’s profitability also benefited from better cost management and higher-margin product categories, underscoring Nykaa’s steady recovery amid rising competition in India’s fast-growing digital retail landscape.
Robust Performance Across Core Segments
Nykaa’s Q2 results underscore its continued dominance in India’s online beauty and lifestyle ecosystem. The company’s beauty and personal care (BPC) segment remained its primary growth driver, contributing nearly 68% of total revenue. The category recorded healthy double-digit growth on the back of new brand partnerships, expanding premium offerings, and an uptick in offline store sales.
The fashion segment, which accounts for a smaller share of revenue, also saw a strong rebound as consumer sentiment improved. Growth was supported by exclusive brand launches, improved curation, and growing traction on Nykaa Fashion’s own private labels. Analysts note that the platform’s focus on premiumisation and brand diversity has helped it retain affluent customers even amid broader market price sensitivity.
Revenue, Margins, and Cost Management
Revenue from operations rose to Rs 1,856 crore, up from Rs 1,507 crore in the same period last year. Meanwhile, EBITDA increased 37% year-on-year to Rs 98 crore, resulting in an EBITDA margin expansion to 5.3% from 4.6% last year.
The company attributed this performance to efficient inventory management, enhanced logistics capabilities, and cost discipline in marketing expenditures. Shipping and fulfilment efficiencies through its omnichannel model—combining online platforms with nearly 200 physical stores nationwide—also contributed to better profitability.
According to the management, investments in technology, analytics, and customer experience are yielding operational leverage, particularly in customer retention and repeat order rates.
Marketplace Dynamics and Growth Strategy
Nykaa’s leadership highlighted the platform’s ability to differentiate itself amid growing competition from horizontal e-commerce players like Amazon and Flipkart, as well as social commerce platforms. Its focus on authenticity, curation, and discovery-led shopping experiences continues to be a key differentiator in the beauty category.
The company has also strengthened its direct-to-consumer (D2C) ecosystem by onboarding emerging Indian brands, helping them scale through marketing and fulfilment support. On the fashion front, Nykaa has been investing in personalization tools and AI-driven styling recommendations to enhance user engagement.
The ongoing festive and wedding seasons are expected to further bolster sales momentum in the coming quarters.
Offline Expansion and Omnichannel Growth
Beyond digital growth, Nykaa is deepening its offline retail footprint to capture the rising demand from tier-II and tier-III cities. During the quarter, the company added several new beauty stores under its “Nykaa Luxe” and “On Trend” formats.
Offline sales now account for a growing share of Nykaa’s total BPC revenue, offering customers a tactile brand experience while reinforcing trust in product authenticity. This omnichannel model—integrating digital convenience with in-store expertise—has become a cornerstone of Nykaa’s strategy to drive sustained growth and customer loyalty.
Outlook: Sustained Growth Momentum Ahead
Looking ahead, Nykaa’s management remains optimistic about the company’s growth trajectory, citing strong consumer appetite for beauty, skincare, and fashion products. The platform continues to focus on profitability, brand expansion, and technological innovation.
Industry analysts view Nykaa’s Q2 performance as a sign of stabilisation after multiple quarters of margin pressures, particularly as the company balances growth investments with disciplined cost structures.
With its robust brand partnerships, omnichannel reach, and increasing focus on premium segments, Nykaa is well-positioned to sustain growth momentum amid India’s expanding beauty and fashion retail market, estimated to surpass $30 billion by 2030.
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