BENGALURU: FSN E-Commerce Ventures , which operates Nykaa, reported a 110% year-on-year increase in consolidated net profit to Rs 19 crore for the March quarter, with margin gains in its core beauty segment and improved performance from its eB2B and retail operations. Revenue rose 24% year-on-year to Rs 2,062 crore in the quarter ended March 2025, while Ebitda increased 43% to Rs 133 crore. Ebitda margin improved to 6.5% from 5.6% a year earlier.
For FY25, consolidated revenue stood at Rs 7,950 crore, up 24%, while gross merchandise value (GMV) rose 25% to Rs 15,604 crore. Annual net profit grew 81% to Rs 72 crore. The company attributed the growth to contribution from owned brands, retail expansion, and operating leverage in the beauty business.
Nykaa’s beauty vertical reported GMV of Rs 11,775 crore in FY25, growing 30% year-on-year. “In Q4, we delivered a 9.6% Ebitda margin in beauty, the highest in the last eight quarters,” said Anchit Nayar, executive director and CEO, Nykaa Beauty. “This is the result of improved gross margins and cost efficiency, not just scale.”
The company’s owned brand portfolio under the House of Nykaa crossed Rs 1,700 crore in GMV. Dot & Key led the segment with GMV of over Rs 900 crore in FY25. Anchit noted the brand’s post-acquisition growth was driven by new formats and strong customer retention. “Dot & Key is now among the top skincare brands across marketplaces, not just on our platform,” he said. Nykaa Cosmetics and Kay Beauty recorded GMVs of Rs 350 crore and Rs 240 crore respectively.
The offline retail channel also showed momentum, with 50 stores added during FY25, the company’s largest annual expansion, taking the total count to 237 stores across 79 cities. Retail GMV grew 31% year-on-year, while same-store sales increased 15%. “Offline beauty retail is delivering both growth and profitability,” Anchit said. “We now have a strong foundation across metros and tier 1 cities to deepen store productivity.”
The company’s eB2B arm, Superstore by Nykaa, posted GMV of Rs 941 crore, growing 57% over FY24. Contribution margin improved by 484 basis points to -12.6%. The unit was recently demerged into Nykaa E-Retail following NCLT approval.
Commenting on the overall performance, group chairperson and MD Falguni Nayar said, “FY25 reflects our ability to grow consistently while improving profitability. From here, the focus will be on margin expansion across verticals through leverage and operating discipline.”
Nykaa Fashion, which has struggled with lower operating leverage compared to the beauty segment, saw a gradual recovery in Q4 with GMV growth of 18% year-on-year. However, full-year GMV grew at a more modest 12%, even as revenue rose 19% aided by marketing income and platform fees. Segment Ebitda margin improved to -8.3% in FY25, from -10.3% a year ago.
“The margin profile is improving because we’ve made deliberate choices in terms of assortment and fulfillment strategy,” Abhijeet Dabas, executive vice president and business head of fashion e-commerce told analysts. “We focused on better curation, higher-quality traffic, and expanding our private-label play, and those changes are beginning to reflect in contribution margins.”
Dabas added that fashion as a vertical is being rebuilt around core brand clusters and structural efficiencies. “This is not a GMV-first strategy. We are prioritising retention and frequency from high-intent users, and scaling categories where we see a clear path to contribution profit,” he said.
For FY25, consolidated revenue stood at Rs 7,950 crore, up 24%, while gross merchandise value (GMV) rose 25% to Rs 15,604 crore. Annual net profit grew 81% to Rs 72 crore. The company attributed the growth to contribution from owned brands, retail expansion, and operating leverage in the beauty business.
Nykaa’s beauty vertical reported GMV of Rs 11,775 crore in FY25, growing 30% year-on-year. “In Q4, we delivered a 9.6% Ebitda margin in beauty, the highest in the last eight quarters,” said Anchit Nayar, executive director and CEO, Nykaa Beauty. “This is the result of improved gross margins and cost efficiency, not just scale.”
The company’s owned brand portfolio under the House of Nykaa crossed Rs 1,700 crore in GMV. Dot & Key led the segment with GMV of over Rs 900 crore in FY25. Anchit noted the brand’s post-acquisition growth was driven by new formats and strong customer retention. “Dot & Key is now among the top skincare brands across marketplaces, not just on our platform,” he said. Nykaa Cosmetics and Kay Beauty recorded GMVs of Rs 350 crore and Rs 240 crore respectively.
The offline retail channel also showed momentum, with 50 stores added during FY25, the company’s largest annual expansion, taking the total count to 237 stores across 79 cities. Retail GMV grew 31% year-on-year, while same-store sales increased 15%. “Offline beauty retail is delivering both growth and profitability,” Anchit said. “We now have a strong foundation across metros and tier 1 cities to deepen store productivity.”
The company’s eB2B arm, Superstore by Nykaa, posted GMV of Rs 941 crore, growing 57% over FY24. Contribution margin improved by 484 basis points to -12.6%. The unit was recently demerged into Nykaa E-Retail following NCLT approval.
Commenting on the overall performance, group chairperson and MD Falguni Nayar said, “FY25 reflects our ability to grow consistently while improving profitability. From here, the focus will be on margin expansion across verticals through leverage and operating discipline.”
Nykaa Fashion, which has struggled with lower operating leverage compared to the beauty segment, saw a gradual recovery in Q4 with GMV growth of 18% year-on-year. However, full-year GMV grew at a more modest 12%, even as revenue rose 19% aided by marketing income and platform fees. Segment Ebitda margin improved to -8.3% in FY25, from -10.3% a year ago.
“The margin profile is improving because we’ve made deliberate choices in terms of assortment and fulfillment strategy,” Abhijeet Dabas, executive vice president and business head of fashion e-commerce told analysts. “We focused on better curation, higher-quality traffic, and expanding our private-label play, and those changes are beginning to reflect in contribution margins.”
Dabas added that fashion as a vertical is being rebuilt around core brand clusters and structural efficiencies. “This is not a GMV-first strategy. We are prioritising retention and frequency from high-intent users, and scaling categories where we see a clear path to contribution profit,” he said.
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