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Key Points

Nykaa's Q4 report reveals a significant 28% drop in profits, alongside an 8.89% decrease in total income. Despite these figures, the company has experienced substantial growth in its retail footprint, adding 50 new stores over the fiscal year. The beauty vertical remains strong, growing its customer base to 34 million with a 30% increase in yearly GMV. Nykaa continues to assert its market leadership with its expanded omnichannel retail presence across India.

Key Points: Nykaa's Q4 Profit Falls by 28% Nykaa Expands Retail Network

  • Nykaa reports 28% decline in Q4 profit
  • Total income also decreases by 8.89%
  • Offline expansion sees 50 new stores added in FY25
  • Beauty vertical grows customer base to 34 million
2 min read

Nykaa's Q4 profit drops 28 pc on-quarter, total income dips

Nykaa reports a 28% Q4 profit drop but sees retail growth with 50 new stores.

"Our offline network spans 237 stores across 79 cities. - Nykaa Spokesperson"

New Delhi, May 30

FSN E-Commerce Ventures Limited, the parent company of popular fashion brand Nykaa, on Friday reported 27.86 per cent sequential drop in its net profit at Rs 19.05 crore, down from 26.41 crore in Q3 FY24.

The company also reported 8.89 per cent decrease in its total income at Rs 2,070 crore in Q4, compared to Rs 2,272.74 crore in Q3, according to its stock exchange filing.

Falguni Nayar-run Nykaa registered a decrease of 9.08 per cent in its revenue from operations at Rs 2,061.76 crore in the January-March quarter, from Rs 2,267.21 crore in Q3.

Meanwhile, total expenses decreased by 8.8 per cent in Q4.

For full FY25, Nykaa’s consolidated gross merchandise value (GMV) was up 25 per cent (on-year) at Rs 15,604 crore.

In FY25, Nykaa’s beauty vertical GMV was Rs 11,775 crore, delivering a yearly growth of 30 per cent.

Nykaa said its offline network continues to get bigger every year and now spans 237 physical stores across 79 cities.

Nykaa has expanded its retail footprint - adding 50 stores in FY25 – marking its highest ever physical expansion to date.

Its profitable store network delivered 31 per cent YoY GMV growth and 15 per cent same-store sales growth (SSSG), affirming its market leadership in beauty omnichannel retail.

“In FY2025, the overall beauty vertical business saw cumulative customer base grow to more than 34 million (28 per cent YoY). Beauty vertical businesses’ EBITDA margin as a percentage to NSV increased to 9.6 per cent in Q4 FY25, the highest in eight quarters, reflecting strong operational performance.

The company's Board also approved appointment of S.N. Ananthasubramanian & Co as the Secretarial Auditors for a period of five consecutive years, commencing from financial year 2025-26 till financial year 2029-30, subject to approval of the shareholders of the company at the ensuing 13th Annual General Meeting.

- IANS

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Reader Comments

Here are 6 authentic Indian perspective comments for the Nykaa article:
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Priya K.
As a loyal Nykaa customer, I'm not too worried about quarterly dips. Their offline expansion is impressive - 50 new stores! That shows confidence in the Indian beauty market. The 30% growth in beauty GMV is what matters long-term. 💄
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Rahul S.
Quarterly fluctuations happen, but investors should focus on the bigger picture - 25% annual GMV growth is solid. However, Nykaa needs to watch its expenses. 8.8% decrease in expenses but 9% drop in revenue? That math doesn't look sustainable.
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Ananya M.
I've noticed Nykaa's prices creeping up while discounts are reducing. Maybe that's affecting sales? Still my go-to for beauty products, but competition from Myntra and Tata Cliq is getting tougher. Hope they maintain quality as they expand! ✨
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Vikram J.
The physical store expansion is a smart move in India where customers still prefer to try before buying. 237 stores across 79 cities is no joke! This omnichannel approach will pay off in the long run despite short-term profit dips.
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Sneha P.
Nykaa's success shows how Indian women are embracing premium beauty products. 34 million customers! But they need to improve their customer service - my last return took 3 weeks to process. Good products but after-sales needs work.
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Karan D.
The beauty market in India is booming but so is competition. Nykaa's advantage is its first-mover status and brand recall. The numbers show they're still the market leader, but can't afford to be complacent. EBITDA margin improvement is a positive sign!

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