Nykaa parent FSN E-commerce nearly triples Q4 profit on robust beauty business
Falguni Nayar-led FSN Ecommerce ventures posted a 2.9X growth in after-tax profit helped by Nykaa's performance of its beauty and personal care business.
FSN Ecommerce Ventures, the parent company of beauty ecommerce platform Nykaa, nearly tripled its after-tax profit, buoyed by the robust performance of its core beauty and personal care (BPC) businesses.
During the March quarter, the startup earned Rs 20.28 crore net profit, compared with Rs 6.93 crore it posted in the corresponding quarter of the previous year as the margins of its core business improved.
The Mumbai-based player saw its operational revenue surge 23% year-on-year (YoY), from Rs 1,667.9 crore to Rs 2,061 crore in the fourth quarter of FY25, according to regulatory filings made with NSE.
The Falguni Nayar-led company also saw its expenses rise by 22.7% YoY to Rs 2,031 crore in the fourth quarter, mostly hurt by employee benefit expenses, finance costs and depreciation expenses.
During the quarter, the company allotted 90,500 equity shares, worth around Rs 1.49 crore, under its ESOP scheme.
Its core beauty and personal care vertical delivered a 24% YoY growth in topline to Rs 1,894 crore. However, on a quarter-over-quarter basis, this segment saw a decline in income from Rs 2,060 crore earned in Q3. The segment, which majorly accounts for the company's flagship ecommerce platform, saw a profit of Rs 103.6 crore. This was further helped by its inclusion of the B2B segment within the BPC business as well as its popular Pink Love Sale held in February.
During the quarter, the company also incorporated a new wholly owned subsidiary, Nykaa Essentials, to be operated in the BPC retail sector, covering both ecommerce and physical stores. Nykaa Essentials will focus on trading and dealing in cosmetics, toiletries, personal care, healthcare, lifestyle, and perfumery products.
In a statement to the stock exchanges filed earlier, the company said it expects GMV growth for its core segment, led by Anchit Nayar, to be driven by strong retail performance and same-store sales growth. Also, it noted that investments in customer acquisition over the past several quarters have led to consistent order volume growth.
"There is also an opportunity for gross margin improvements in the multi-brand beauty retail business, not only through ad income but also through our mix of what we sell on the platform. So, if premiumisation and the sale of more prestige and luxury goods continue to play out the way it has, then that should also be a net positive," shared Anchit Nayar, CEO of Nykaa E-Retail.
Nykaa Now, the company's pilot rapid delivery format, will now be further scaled across cities.
"It doesn't make the most fiscal sense to use them (physical stores) as warehouses. But we do have the technology and we do use it to dispatch certain products and certain assortment to consumers from the stores," he shared.
Nykaa's fashion vertical, which competes with Myntra, Tata Cliq Fashion and Ajio, saw a further decline in its bottom line, with a loss of Rs 36.4 crore from Rs 29.1 crore in the corresponding quarter in the previous year. However, the segment's revenue rose by 10% to Rs 161 crore.
Shares of the company were trading 1.81% lower on the NSE, closing the trading at Rs 200.8 apiece.
(The copy was updated with post-earnings call analysis.)
Edited by Kanishk Singh