Nykaa Sees 71% Profit Jump and 40% Ad Spend Boost in Q2FY25

Nykaa's parent company, FSN E-Commerce Ventures, reported a 71.6% rise in net profits for Q2FY25, reaching Rs. 10.04 crore. With ad spending up by 40% and strong growth across segments, Nykaa saw its Gross Merchandise Value (GMV) increase by 24% YoY. Nykaa’s beauty and owned brands also thrived, with GMV growth rates of 29% and 48%, respectively, fueled by new retail stores and luxury brand launches. Nykaaland 2024, the brand's signature beauty event, drew 25,000 enthusiasts. The fashion segment posted a 22% revenue increase while improving profit margins through efficient cost management and boosted content income.

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Nykaa, under FSN E-Commerce Ventures, posted a net profit of Rs. 10.04 crore for Q2FY25, marking a 71.6% year-on-year (YoY) increase from Rs. 5.85 crore in the same quarter of the previous year. This profit jump aligns with the company’s heightened advertising efforts, as Nykaa increased its ad spend by 40%, reaching Rs. 236.5 crore for the quarter ending September 30, 2024. This investment is aimed at driving customer engagement and brand growth, which the results indicate is paying off.

Gross Merchandise Value (GMV), a key metric for Nykaa’s business, grew by 24% YoY to Rs. 3,652.5 crore. This increase contributed to a similar 24% rise in consolidated revenue, which reached Rs. 1,874.7 crore for the quarter. The company also improved operational efficiency, with fulfillment costs dropping slightly to 9.3% of revenue compared to 9.7% a year ago.

Beauty Vertical
Nykaa’s beauty segment, its main revenue generator, achieved a 29% YoY GMV increase, reaching Rs. 2,783.3 crore in Q2FY25. This growth was supported by the brand’s expanding retail footprint, with 210 stores across 72 cities—a 25% increase in retail space. Nykaa continues to attract a wide range of global beauty brands, recently launching 170 new brands, including luxury names such as Yves Saint Laurent and Dr. Jart+.

Nykaa’s annual beauty event, Nykaaland 2024, drew 25,000 beauty enthusiasts, a 1.7x increase from the previous year. With influential content creators and notable brands attending, Nykaaland is fast becoming a signature event for beauty lovers.

Owned Brands
Nykaa’s owned beauty brands showed substantial growth as well, recording a 48% YoY GMV increase with Rs. 360 crore in revenue. The company expanded its stake in brands Dot & Key and Earth Rhythm and enriched its own Kay Beauty and Nykaa Cosmetics lines. Additionally, its B2B platform, Superstore by Nykaa, saw an 80% YoY GMV growth as it expanded its network to 235,000 retailers across 1,060 cities.

Fashion Segment
Nykaa Fashion also demonstrated resilience, with revenue rising 22% YoY and a 10% increase in GMV. The segment’s profit margins received a boost due to better cost efficiencies and increased content income, which led to a 300+ basis points improvement in EBITDA margins. This performance reflects Nykaa Fashion’s strategic initiatives to enhance profitability while expanding its presence in the fashion market.

Nykaa’s success in Q2FY25 underscores the brand’s commitment to innovation and market expansion across both beauty and fashion segments. By boosting ad spending and focusing on high-demand brands, Nykaa continues to grow its customer base and deepen its market footprint. The promising returns across each business segment signal an impactful year ahead for Nykaa, supported by its strategic investments in both marketing and new product launches.