Nykaa Q3: Beauty Segment Powers Company To Yet Another Profitable Quarter - Related to profitable, zooms, beauty, inr, company

Nykaa Q3: Beauty Segment Powers Company To Yet Another Profitable Quarter

The ‘House of Nykaa’ brands saw their GMV zoom 49% YoY to INR Cr in Q3 FY25, with the enterprise saying that the vertical has scaled up 3X in the past three years.

With competition in the fashion segment heating up, Nykaa CEO Falguni Nayar unveiled that the re-entry of Shein in India will have no impact on the business.

While revenue of Nykaa's BPC business jumped 27% YoY to INR 2. Cr in Q3 FY25, profits rose YoY to INR Cr.

Nykaa continued to see healthy growth across the board as it saw yet another profitable quarter. The beauty ecommerce giant’s consolidated net profit zoomed more than 51% year-on-year (YoY) to INR Cr in the third quarter (Q3) of fiscal year 2024-25 (FY25).

EBITDA zoomed 42% YoY to INR Cr in the quarter under review.

Revenue from operations surged YoY and sequentially to INR 2. Cr in the October-December quarter. The uptick in the top line came on the back of robust growth across verticals, including the online beauty platform, owned beauty brands, physical retail stores, e-B2B distribution business.

While revenue from Nykaa’s beauty and personal care (BPC) business jumped 27% YoY to INR 2, Cr in Q3 FY25. The enterprise also realised a profit of INR Cr from this vertical, up YoY.

On the other hand, Nykaa Fashion continued to remain a loss-making entity in the quarter. While its revenue increased YoY to INR 199 Cr, Nykaa’s fashion arm managed to trim its loss by YoY to INR Cr.

Another loss-making entity for Nykaa was its international beauty business. The arm’s loss ballooned to INR Cr in Q3 FY25, up nearly 84% from INR Cr in the year-ago period. However, revenue from the international beauty business surged 176% YoY to INR Cr during the quarter under review.

Meanwhile, Nykaa’s cumulative customer base increased 29% YoY to about 40 Mn and gross merchandise value (GMV) zoomed 25% YoY to INR 4, Cr in Q3.

Now, let’s take a deeper look into how Nykaa fared on the financial front.

Nykaa’s omnichannel beauty playbook continued to pay off as the vertical saw an “accelerated growth momentum” in the quarter under review. With its GMV rising 32% YoY to INR 3, Cr in the quarter ended December 2024. The firm attributed this jump to its rising customer cohort.

Nykaa noted that its cumulative beauty customer base grew to 32 Mn in the quarter under review. “The solid order volume growth of 30% YoY is the highest growth in the last 9 quarters,” the enterprise added.

During the quarter, the enterprise also hosted its flagship “Nykaa Pink Friday” sale during which it offered massive discounts on beauty, skincare. Haircare, and wellness products. Nykaa stated it registered a 55% customer growth during the sale and clocked 86 Mn site visits.

Further, it also added more than 200 brands on its platform in Q3 FY25. One of the “highest brand onboardings in recent times”.

The corporation also claimed that it had India’s largest beauty retail network at the end of Q3 FY25. Nykaa’s retail network comprised 221 physical stores spanning 73 cities, with 12 new store launches in three cities in the December 2024 quarter.

The corporation noted that its offline beauty network is profitable at the PAT-level. Adding that the business clocked 34% YoY growth in GMV during the quarter. Besides, the offline business now contributes 9% to Nykaa’s omnichannel beauty GMV.

“We now reach almost 6 Lakh retailers in 1,100 cities. So, we are now deep in Indian Tier-III and Tier-IV where we have a regular user base. This really helps improve our profitability,” the enterprise stated during its investor call.

Responding to a question about whether the organization plans to trim its rising expenses towards growing the beauty vertical in the future, the chief executive of Nykaa’s beauty vertical Anchit Nayar expressed there is still a scope for penetration in the category.

“There is a lot of category expansion that needs to be done and. The benefit of larger TAM will ultimately accrue to us. So we see investment in customer acquisition as one of the larger buckets of our marketing expenses and. We are seeing the benefits of that play out,” he added.

The fashion category continued to drag down Nykaa’s bottom line. During the call, the firm’s management noted the overall fashion market is going through turbulent times, and unveiled that the firm’s next course of action will be to improve the profitability of its fashion business.

“Revenue growth higher than GMV growth in Q3, driven by strong performance by LBB (strong marketing income including marquee events like – Nykaaland and Nykaa Wali Shaadi – and. Higher services related income,” Nykaa revealed in its investor presentation.

Nykaa’s fashion GMV grew a mere 8% YoY to INR 1, Cr in the quarter. However, the organization improved its gross margin as a factor of its net sales value (NSV) for the fashion vertical to from in the year ago quarter.

Alongside, the listed giant also improved its fulfilment expenses for the fashion vertical by 93 basis points (bps) to 10% on the back of shift from air to land shipments and savings on packaging cost.

Meanwhile, Nykaa splurged heavily on marketing for the fashion business. With expenses under the bucket rising sharply to of its NSV from in the year-ago quarter due to an increase on account of campaigns and customer acquisition.

“The fashion vertical continues to show improvement in profitability with cost efficiencies across several cost items,” Nykaa added.

Additionally, this comes at a time when the competition in the fashion segment is heating up with the re-entry of Shein in India. Acknowledging the competitive landscape, Nykaa CEO Falguni Nayar stated that the category is unlikely to see a clear leader.

“The market is very wide, and. No one brand can dominate it. We believe that Shein’s return should not have much of an impact,” Nayar added.

Dot & Key Emerges As The Crown Jewel Of The House Of Nykaa.

The beauty and. Fashion brands backed by the firm continued to scale up. The ‘House of Nykaa’ brands saw their GMV zoom 49% YoY to INR Cr in Q3 FY25. It stated that the vertical has seen a significant growth since IPO, scaling over 3X in the last 3 years.

“Nykaa Cosmetics, Kay Beauty and Dot & Key continue to garner significant customer love, and. Through their innovative launches and unique formulations embody deep understanding of India’s diverse beauty,” it said.

The company also claimed that its acquisition of Dot & Key has turned the beauty brand into “one of India’s biggest D2C acquisition success stories”. Dot & Key has grown 15X in the last three years and now commands a GMV run rate of INR 900 Cr, it added.

Meanwhile. Katrina Kaif-backed Kay Beauty’s GMV grew 4X in the past three years and achieved an annualised GMV of INR 330 Cr in Q3 FY25. Nyka expressed that the brand boasts a strong offline presence across 150+ cities, encompassing 221 Nykaa stores and 520+ “selective doors” outlets.

Nykaa’s House of Brands includes a plethora of company-owned brands like Nykaa Naturals, Nykaa Cosmetics, Kay Beauty, Nykd by Nykaa, 20 Dresses, RSVP, Mondano, Likha, and. Pipa Bella, Dot & Key, Little Black Book (LBB), among others.

During the quarter under review, Nykaa also acquired an additional stake in Earth Rhythm for INR Cr, taking its total shareholding in the fashion brand to .

Meanwhile, B2B beauty arm Superstore too remained a loss-making entity even though parent Nykaa expects its losses to decline over time. Overall. Nykaa Superstores’ total gross merchandise value (GMV) stood at INR 259 Cr in Q3 FY25, up 53% from INR 170 Cr in Q3 FY24.

In relation to this, the enterprise proposes that its B2B vertical hosted Lakh transacting retailers across 1,100+ cities and. Towns.

Shares of Nykaa ended Monday’s trading session lower at INR on the BSE.

Tracxn’s Q3 Profit Declines 36% YoY To INR 1.4 Cr

Its revenue from operations increased to INR Cr in Q3 FY25 from INR Cr in the year-ago quarter.

The firm had posted a loss of INR Cr in the preceding September quarter of FY25 due to deferred tax component.

Market intelligence business Tracxn reported a net profit of INR Cr in the third quarter of the fiscal year 2024-25 (Q3 FY25). Down 36% from INR Cr in the same quarter of previous fiscal.

The business had posted a loss of INR Cr in the preceding September quarter of FY25. In Q2 FY25, Tracxn’s management “reassessed the recoverability of deferred tax assets on carry forward business losses based on the availability of future taxable profits and. Reversed deferred tax assets”. This led to an additional burden of INR Cr on its bottom line.

“Management has reviewed the recoverability of such deferred tax assets as at December 31, 2024 and. Concluded that no further adjustment is required in this regard,” the corporation mentioned.

Meanwhile, its revenue from operations increased to INR Cr in Q3 FY25 from INR Cr in the year-ago quarter. On a quarter-on-quarter (QoQ) basis, the business’s top line was almost flat.

Including other income of INR Lakh and other gain component of INR Cr, the enterprise’s total income for the quarter stood at INR Cr.

However. EBITDA declined 76% year-on-year (YoY) to INR 45 Lakh during the quarter under review from INR Cr in the year-ago quarter. EBITDA margin also contracted to from in Q3 FY24.

Founded in 2013 by Neha Singh and Abhishek Goyal, Tracxn is a private equity market research and data platform that tracks firm financials. Private funding and cap tables of entities worldwide.

It proposes to host detailed shareholding of over Lakh companies from over 15 countries on its platform. At 1,699, Tracxn added the highest number of clients in Q3.

The business states to have realised a 16% YoY increase in its India revenue to INR Cr in the first nine months of FY25, while revenue from international end-clients dipped 6% YoY to INR Cr.

The enterprise mentioned that the growth spurt from the India business came on the back of the launch of “vertical teams” in the past nine months.

The corporation launched a new platform, Tracxn Lite. Which gives customers a chance to explore curated data at no cost and comes with strict usage limits. It proposes that this platform has got more than 1 Lakh signups since launch and has a monthly active user base of 23,000.

Besides, it also hints at to be seeing increased volume of inbound leads in its verticals dedicated to startups, accelerators, incubators and. Investment banks.

While the corporation’s top line grew steadily in the past quarter, its total expenses also increased YoY and QoQ to INR Cr. A bulk of its expenses were centred around its employees, with it spending INR Cr on its workforce. This marked a YoY and QoQ increase.

In the quarter, Tracxn expanded its employee stock option plan by allotting 4,47,036 equity shares to eligible employees under Employee Stock Option Plan 2016.

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Nykaa Q3 Profit Zooms 51% To INR 26 Cr

Including other income of INR Cr, the corporation’s total revenue stood at INR 2, Cr for the quarter ended December 2024.

Revenue from operations jumped to INR 2, Cr in Q3 FY25 from INR 1, Cr in the year-ago quarter.

Omnichannel beauty retailer Nykaa’s consolidated net profit surged 51% to INR Cr in the third quarter of the financial year 2024-25 (Q3 FY25) from INR Cr in the year-ago period on the back of strong growth across beauty and fashion verticals.

On a quarter-on-quarter basis, net profit rose 104% from INR Cr.

Revenue from operations jumped to INR 2. Cr in the September-December quarter from INR 1, Cr in the corresponding period last year. Sequentially, it increased by from INR 1, Cr.

Including other income of INR Cr, the beauty and ecommerce major’s total revenue stood at INR 2, Cr for the quarter ended December 2024.

Its cumulative customer base across the beauty and fashion segments stood at 40 Mn in Q3 FY25, a 29% year-on-year increase.

In an investor presentation, the Falguni Nayar-led organization mentioned it clocked a consolidated gross merchandise value (GMV) of INR 4. Cr in Q3 FY25, a jump of 25% from INR 3, Cr in the year-ago period. Meanwhile, its EBITDA zoomed 42% to INR Cr during the quarter under review from INR Cr in Q3 FY24.

The beauty and personal care (BPC) segment continued to be the key revenue driver for Nykaa. Contributing INR 2, Cr to the top line during the quarter under review. This was an over 15% jump from INR 1, Cr in Q3 FY24 and a nearly 10% increase from INR 1, Cr in Q2 FY25.

The strong growth came on the back of a 32% jump in the BPC segment’s GMV to INR 3, Cr in Q3 FY25 from INR 2, Cr in the same quarter last year.

Meanwhile, annual unique transacting consumers across Nykaa, Retail and. Nykaa Man surged 22% to Mn in Q3 FY25 from Mn in Q3 FY24.

Nykaa currently operates 221 beauty stores — such as Nykaa On Trend, Nykaa Luxe and Nykaa Kiosk — spanning Lakh square feet in 73 cities, of which 12 stores were opened in the reported quarter.

The BPC major mentioned that 70% of orders for beauty products were delivered within the same/next day in the top 110 cities in the quarter ended December 2024. It must be noted that Nykaa is also looking to foray into 10-minute deliveries for beauty products.

In October 2024. It was reported that the omnichannel beauty retailer piloted its 10-minute delivery service in select pin codes of Mumbai for 5% of its SKU base. The same month, the corporation’s founder and CEO Nayar noted that Nykaa will focus on addressing consumer demand for quick deliveries once the sector scales to a certain level.

Fashion Delivers Strong Growth Amid Tough Macro Environment.

Nykaa raked in INR 199 Cr from its fashion segment in the September to December quarter. Up 21% from 90 Cr in the year-ago period. The revenue growth outpaced the rise in GMV, which rose 8% year-on-year to INR 113 Cr in Q3 FY25.

The growth was driven by strong marketing income from events like Nykaaland and Nykaa Wali Shaadi and higher services-related income.

Despite the growth. Nykaa incurred a loss of INR Cr from this segment during the quarter.

Nykaa also earned a revenue of INR Cr from its international beauty business during the quarter under review, a whopping 176% increase from INR 3 Cr in Q3 FY24. However, this division reported a loss of INR Cr in Q3 FY25.

In line with the surge in revenue, Nykaa’s total expenses rose nearly 26% to INR 2. Cr in Q3 FY25 from INR 1, Cr in the same quarter last year. On a QoQ basis, total expenditure rose almost 20% from INR 1, Cr.

Purchase Of Traded Goods: The BPC major managed to control the rise in expenditure under this head during the quarter under review. This spending rose a little over 4% to INR 1, Cr in Q3 FY25 from INR 1, Cr in Q3 FY24.

Employee Costs: Nykaa spent INR Cr towards employees’ remuneration and other benefits in Q3 FY25, an 18% increase over INR Cr spent in the year-ago quarter.

Shares of FSN Ecommerce Ventures. The parent of Nykaa, ended Monday’s trading session lower at INR apiece on the BSE.

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