Nykaa Q4 Results: Net Profit Triples YoY to ₹20 Crore | Strong BPC & Fashion Growth

Mumbai, India | May 30, 2025 – FSN E-Commerce Ventures Ltd., the parent company of beauty and fashion retailer Nykaa, reported a stellar performance for the fourth quarter ended March 2025. The company’s consolidated net profit surged nearly three-fold year-on-year (YoY) to ₹20.1 crore, up from ₹7.8 crore in the same period last year, driven by strong revenue growth, improved operational efficiencies, and robust consumer demand in its beauty and personal care (BPC) segment.

Strong Revenue Momentum Across Segments

Nykaa’s consolidated revenue from operations rose 28% YoY to ₹1,668 crore in Q4 FY25, compared to ₹1,302 crore in Q4 FY24. The revenue boost was largely attributed to its core beauty and personal care vertical, which remains the most profitable segment, alongside notable traction in the fashion and eB2B businesses.

“This quarter’s results underscore our ability to sustain profitability while scaling operations. Our beauty business continues to show strong fundamentals with high repeat rates and healthy gross margins,” said Falguni Nayar, Executive Chairperson, MD & CEO of Nykaa.

The gross merchandise value (GMV) for the quarter also witnessed a significant uptick, crossing ₹2,800 crore, highlighting the sustained consumer appetite for digital-first beauty and fashion platforms.

EBITDA Growth and Margin Improvement

Nykaa’s earnings before interest, tax, depreciation and amortization (EBITDA) came in at ₹79.5 crore, marking a sharp improvement from ₹49.3 crore in Q4 FY24. The EBITDA margin also improved to 4.8%, up from 3.8% last year, reflecting efficient inventory management, technology investments, and cost optimization.

“Operational efficiency and a greater mix of high-margin products helped lift the overall profitability. What’s also commendable is Nykaa’s ability to stay agile amid changing consumer trends,” noted Meena Ganesh, market analyst at Venture Insights.

Digital and Omnichannel Strategy Bearing Fruit

Nykaa’s investment in its omnichannel retail model—combining online platforms with physical stores—continues to deliver strategic advantages. The company expanded its retail footprint to 187 stores across 68 cities during the quarter.

Digital engagement remains a core growth driver. The platform reported a 30% YoY rise in monthly active users (MAUs), indicating growing brand stickiness and user engagement.

Segment-Wise Performance

• Beauty and Personal Care (BPC): The BPC segment contributed around 70% of overall revenue and saw a 23% YoY revenue growth. The segment’s EBITDA margins remain strong at over 12%.

• Fashion: Fashion GMV grew 34% YoY, though the segment is still margin-dilutive compared to BPC. The company is focusing on exclusive brand partnerships and private label growth to improve profitability.

• eB2B (Superstore by Nykaa): This segment saw an 82% YoY growth in GMV. However, higher operating expenses in logistics and distribution continue to weigh on margins.

Stock Market Reaction and Valuation Insights

Following the announcement of the results, Nykaa’s stock surged nearly 6% intraday, reflecting investor optimism over the company's margin expansion and profitability.

As of market close on May 29, Nykaa shares were trading at ₹178.40, with a market capitalization of ₹50,000 crore. The stock has gained over 18% in the past six months, outperforming the broader Nifty FMCG and Nifty Smallcap indices.

“These results re-affirm Nykaa’s resilience and growth trajectory. The company’s ability to maintain profitability while expanding into new segments like fashion and B2B is a clear positive for long-term investors,” said Ravi Menon, head of research at Elara Capital.

Investor Outlook: Path Ahead for Nykaa

Analysts believe Nykaa’s focus on profitability, consumer loyalty, and differentiated offerings in beauty and personal care provides a solid foundation for long-term value creation. However, challenges remain in achieving scale and margin parity in its fashion and eB2B verticals.

Key areas of investor interest going forward include:

• Private label growth in both BPC and fashion

• Margin improvement in Superstore by Nykaa

• Strategic acquisitions or international forays

• User growth and retention metrics

Despite rising competition from horizontal platforms like Amazon and Flipkart, Nykaa’s content-to-commerce model, trusted brand image, and premium customer base continue to act as strong differentiators.

Conclusion

Nykaa’s Q4 FY25 results mark a significant turnaround, reinforcing its status as one of India’s leading digital-first consumer companies. With strategic focus, strong unit economics, and a loyal consumer base, the company is well-positioned to sustain its upward trajectory in the evolving Indian retail landscape.