Nykaa Q4 Results: Net profit nearly triples on upbeat demand, margins improve

FSN E-Commerce Ventures Ltd, the parent of beauty and fashion retailer Nykaa, reported a sharp rise in fourth-quarter profit on Friday, driven by strong consumer demand and improved operating margins.

Net profit for the quarter ended March 31 jumped to ₹20.3 crore, up from ₹7 crore a year earlier. Revenue rose 23.6% year-on-year to ₹2,061.8 crore, compared with ₹1,668 crore in the same period last year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 43% to ₹133.4 crore from ₹93.3 crore. EBITDA margin improved to 6.47% from 5.59% a year earlier.

Gross merchandise value (GMV) for Q4 FY25 reached ₹4,102 crore, a 27% increase from the year-ago period, underscoring continued consumer momentum across Nykaa’s online and offline channels.

For the full fiscal year, consolidated GMV rose 25% to ₹15,604 crore, with revenue increasing 24% to ₹7,950 crore. Full-year EBITDA stood at ₹474 crore, up 37% from FY24, and the EBITDA margin improved to 6.0% from 5.4%.

Founded in 2012 by Falguni Nayar, Nykaa has evolved from a digital-first beauty platform to a diversified retail and consumer tech player with offerings spanning fashion, private labels, and B2B distribution. The company went public in 2021 and now operates 237 physical stores across 79 cities, making it India’s largest specialised beauty retailer.

The company’s owned beauty brands under the "House of Nykaa" portfolio delivered strong results, with Dot & Key achieving over ₹900 crore in GMV and emerging as the No. 1 skincare brand on Nykaa. Nykaa Cosmetics recorded GMV of over ₹350 crore, supported by trend-driven launches, while Kay Beauty, co-created with actress Katrina Kaif, crossed ₹240 crore in GMV and expanded into GCC markets through Nykaa’s Nysaa venture.

Nykaa’s B2B distribution arm, Superstore by Nykaa, became the largest of its kind in India, with GMV growing 57% year-on-year to ₹941 crore. The platform now serves over 276,000 retailers across 1,100 cities and towns.

Nykaa Fashion showed signs of recovery with Q4 FY25 GMV up 18% YoY and FY25 revenue rising 19%. EBITDA margins improved to -8.3% from -10.3% in FY24, driven by better gross margins and cost efficiencies.

The company also executed key structural moves in FY25. It completed the demerger of its eB2B business into Nykaa E-Retail and merged its content and discovery platform LBB (Iluminar Media) into Nykaa Fashion to streamline operations and enhance consumer engagement through a unified platform.

Shares of FSN E-Commerce Ventures Ltd closed 0.7% higher on the Bombay Stock Exchange ahead of the earnings release.

Nykaa’s customer base crossed 42 million across online and offline platforms. The company continues to attract global brands such as Chanel, Armani Beauty, and Supergoop, solidifying its role as a gateway for premium international beauty labels entering India.