FSN E-Commerce Ventures Limited, known as Nykaa, reported its Q2 FY25 financial results, showing solid performance across its retail operations in India. Consolidated Gross Merchandise Value (GMV) rose by 24 percent year-over-year (YoY) to Rs 36,525 million, with revenue from operations also up by 24 percent YoY, reaching Rs 18,747 million. The company’s Q2 FY25 EBITDA was Rs 1,037 million, marking a 29 percent YoY increase in profitability.
Financial Overview
For Q2 FY25, Nykaa’s revenue from operations saw a 24 percent YoY increase, reaching Rs 18,747 million. Gross profit rose 26 percent YoY to Rs 8,210 million, and EBITDA grew by 29 percent YoY, totaling Rs 1,037 million. Profit before tax saw significant growth at 60 percent YoY, reaching Rs 213 million, while net profit for the period stood at Rs 130 million, reflecting a 66 percent YoY increase.
Business Updates: Beauty Retail
Nykaa’s beauty retail vertical demonstrated a strong performance with a 29 percent YoY increase in GMV, reaching Rs 27,833 million. This growth was driven by a 31 percent rise in new customer acquisitions, bringing Nykaa’s cumulative beauty customer base to 30 million and its total cumulative base for “One Nykaa” to 37 million. The vertical also saw a 22 percent YoY increase in annual unique transacting customers and a 24 percent YoY increase in total orders.
Expanding its retail footprint, Nykaa now has India’s largest beauty retail network with 210 stores across 72 cities, including two new flagship stores in Mumbai and Delhi. Retail space expanded by approximately 25 percent YoY, achieving a GMV of Rs 3,500 per square foot per month. Nykaa continues to add global beauty brands to its platform, launching over 170 new brands in Q2 FY25, such as YSL Beauty and Dr Jart+, both exclusive to Nykaa in India.
To enhance customer satisfaction, Nykaa has bolstered its same-day and next-day delivery services across 110 cities, with over 70 percent of orders in these areas fulfilled within a day.
Nykaaland 2024 and Industry Engagement
The second edition of Nykaaland, India’s largest beauty festival, drew over 25,000 visitors—1.7 times the previous year’s attendance. The event featured over 1,000 content creators, industry expert masterclasses, and participation from 80+ major brands. New product launches included offerings from Clinique, Sol de Janeiro, and GHD.
Nykaa also held the “Beauty & You” program in partnership with Estée Lauder Companies, supporting emerging Indian beauty entrepreneurs. Additionally, in September 2024, the company hosted its “Best in Beauty” Summit, introducing a Beauty Trend report created in collaboration with Redseer. Key industry figures, such as Rohit Jawa, MD and CEO of HUL, and Vismay Sharma, President of L’Oréal South Asia Pacific, joined discussions on emerging trends.
Beauty: Owned Brands
Nykaa’s owned beauty brands posted a 48 percent YoY GMV growth in Q2 FY25, totaling Rs 3,602 million. The company increased its stakes in Dot & Key and Earth Rhythm, along with expanding its product range in popular lines like Kay Beauty and Nykaa Cosmetics.
Beauty Distribution: Superstore by Nykaa
Superstore by Nykaa, Nykaa’s beauty distribution arm, experienced an 80 percent YoY GMV growth and currently serves over 235,000 transacting retailers across 1,060 cities and towns in India. Profitability improved, with a contribution margin shift from -20.1 percent in Q2 FY24 to -11.5 percent in Q2 FY25 due to increased ad income and operational cost efficiencies.
Fashion Retail Expansion
Nykaa Fashion’s revenue grew by 22 percent YoY, while GMV rose by 10 percent YoY, with “First in Fashion” sales (new season items) showing a 26 percent YoY increase. Profitability in this segment improved, with gross margins up by 567 basis points YoY, now at 49.7 percent, and fulfillment cost reductions contributing to a better EBITDA margin of -9.0 percent, compared to -12.1 percent in Q2 FY24.
Nykaa also introduced the global sneaker retailer Foot Locker on its platform, expanding into the athletic footwear market in India. This includes a dedicated Foot Locker India website and integration within Nykaa’s ecosystem, providing customers with exclusive access to sneakers and sportswear.
Nykaa’s Q2 FY25 results reflect its strategic growth in both beauty and fashion, with substantial expansions in retail presence, product offerings, and customer acquisition across India.
