Leading beauty and fashion e-commerce platform starts fiscal year on strong footing, introduces vertical-wise segmental reporting
Introduction:
FSN E-Commerce Ventures Ltd, the parent company of popular beauty and fashion e-commerce platform Nykaa, has projected an impressive 22-23% year-over-year revenue growth for the first quarter of fiscal year 2025. The company also expects its consolidated Gross Merchandise Value (GMV) to increase by a strong mid-twenties percentage compared to the same quarter last year.
Starting this quarter, Nykaa is introducing separate segmental reporting for its key business verticals – Beauty and Fashion. The Beauty segment includes the Nykaa online beauty platform, Nykaa-owned beauty brands, physical retail stores, the Superstore by Nykaa B2B distribution business, and the Nykaa Man beauty and personal care business. The Fashion segment encompasses the Nykaa Fashion platform, Nykaa-owned fashion brands, the LBB content platform, and the Nykaa Man lifestyle business.
Diving into the numbers, Nykaa’s core Beauty vertical is projected to match the overall company’s 22-23% revenue growth in Q1 FY25. However, the Beauty segment’s GMV growth is expected to outpace revenue, rising in the high-twenties year-over-year. This robust performance comes despite relatively slower growth in Nykaa’s physical retail business, which was impacted by elections and heat waves in North India during the quarter.
“Our Beauty business continues to demonstrate the long-term growth potential of India’s beauty and personal care industry,” said Falguni Nayar, Founder and CEO of Nykaa. “We are driving strong growth in both our online and offline channels, with our e-commerce platform and owned beauty brands leading the charge. The introduction of segmental reporting will provide greater visibility into the performance and progress of our key businesses.”
On the Fashion front, Nykaa expects revenue to grow by a healthy 20% year-over-year in Q1 FY25, outperforming the overall fashion industry which continues to face a challenging demand environment. The Fashion segment’s GMV growth is projected to be in the mid-teens compared to Q1 last year, impacted by muted demand and the seasonally weak quarter which saw fewer weddings and festivities.
“Our Fashion business is weathering the near-term challenges and delivering steady growth, thanks to the strong value proposition and differentiated assortment of the Nykaa Fashion platform and our owned fashion brands,” said Adwaita Nayar, Co-founder and CEO of Nykaa Fashion. “We remain confident in the long-term opportunity to build the leading fashion destination for Indian consumers.”
Nykaa’s upbeat Q1 projections build on the company’s strong performance in the previous quarter. In Q4 FY24, Nykaa recorded a net profit of Rs 9.07 crore, surging 297.8% year-over-year, while revenue grew 28.1% to Rs 1,667.98 crore. Consolidated GMV rose 32% year-over-year to Rs 3,217.20 crore in Q4.
The strong projected performance reinforces Nykaa’s position as a leading player in India’s fast-growing online beauty and fashion retail ecosystem. The company has built a loyal and engaged customer base of over 30 million through its content-to-commerce playbook, a portfolio of owned brands, and an omnichannel approach spanning online and offline retail.
Conclusion:
Nykaa’s robust Q1 FY25 growth guidance highlights the resilience of its unique business model focused on digital-first consumers and the continued growth potential of India’s beauty and fashion e-commerce. With the introduction of segmental reporting, investors will gain better insights into the performance of Nykaa’s key growth verticals. As the company continues to invest in expanding its e-commerce platforms, launching innovative owned brands, and growing its offline footprint, Nykaa is well-positioned to maintain its leadership in the vibrant Indian online BPC and fashion retail market.
