Nykaa shares gain over 5% as net revenue growth more than mid-twenties anticipated for Q3

Nykaa shares in Monday's trade zoomed over 5 per cent at the day's high to Rs 176.50 per share on the BSE following the company's Q3 business update. At around 1:12 pm, the scrip traded higher by over 4 per cent or Rs 7.15 at Rs 174.9 apiece on the BSE.

In its quarterly revenue update, the company said, "Nykaa (FSN E-Commerce Ventures Limited along with its subsidiaries) witnessed a strong performance in Q3 FY2025 with consolidated Net Revenue growth likely to be higher than mid-twenties. This is higher than the consolidated gross merchandise value (GMV) growth for the same period, indicating positive trend in GMV to Net Revenue translation."

The company's beauty vertical has also registered good growth in comparison to the earlier quarters with net revenue growth higher than mid-twenties. The company expects gross merchandise value or GMV for the beauty segment to register growth in low thirties- reflecting  strong momentum in all of Nykaa’s beauty businesses – ecommerce platform, retail stores, owned brands and eB2B distribution.

Also, customer acquisition at Nykaa continues to accelerate. said the company in an exchange filing.

Furthermore, the company's fashion business is seen registering net revenue growth of around 20 per cent. Also, the NSV growth is likely to be around low to mid-teens indicating continuing strong growth in content, marketing and servicerelated income.

The eB2B distribution business – Superstore by Nykaa, which accounts for 8 per cent of beauty vertical’s GMV (vs 7% a year ago) continues to witness rapid expansion and now services around 260,000 transacting retailers across 1,100+ cities. 

We believe online fashion demand continues to be subdued, but we remain optimistic about the long-term growth opportunity, noted the company in its filing with the exchanges.

Nykaa's Q2FY25 results

For the September quarter, the company's profit before tax (PBT) jumped 60.33 per cent year-on-year (YoY) to Rs 21.26 crore. EBITDA grew 29 per cent to Rs 103.7 crore during the quarter as compared with Rs 80.6 crore in Q2 FY24. EBITDA margin rose by 18 bps to Rs 5.5 per cent in Q2 FY25 as against 5.4 per cent in Q2 FY24.

During the quarter, consolidated GMV grew 24 perYoY to Rs 3,652.5 crore.