Why Did Nykaa’s Q4 Profit Drop 28% on Quarter?
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Synopsis
FSN E-Commerce Ventures Limited, Nykaa's parent company, has reported a significant drop in Q4 profits, raising questions about its financial health. With a 27.86% sequential decline in net profit and a dip in revenues, what does this mean for the brand's future? Explore the latest updates on Nykaa's performance and expansion plans.
Key Takeaways
- Nykaa's net profit declined by 27.86% in Q4 FY25.
- Total income fell by 8.89% to Rs 2,070 crore.
- GMV growth for FY25 was 25%, totaling Rs 15,604 crore.
- Nykaa expanded its store network by 50 stores in FY25.
- The EBITDA margin for the beauty vertical reached 9.6% in Q4 FY25.
New Delhi, May 30 (NationPress) FSN E-Commerce Ventures Limited, the parent company behind the well-known fashion label Nykaa, has disclosed a 27.86 percent decline in its net profit, reporting Rs 19.05 crore, down from Rs 26.41 crore in Q3 FY24. In addition, the company noted an 8.89 percent reduction in total income, which stood at Rs 2,070 crore in Q4, compared to Rs 2,272.74 crore in Q3, as per its stock exchange announcement.
Under the leadership of Falguni Nayar, Nykaa experienced a 9.08 percent drop in revenue from operations, registering Rs 2,061.76 crore in the January-March quarter, down from Rs 2,267.21 crore in Q3.
Meanwhile, total expenses saw an 8.8 percent decrease in Q4.
For the entire FY25, Nykaa's consolidated gross merchandise value (GMV) increased by 25 percent year-on-year, reaching Rs 15,604 crore.
In FY25, the GMV of Nykaa's beauty segment was Rs 11,775 crore, reflecting a strong yearly growth of 30 percent.
Nykaa has continued to expand its offline presence, now boasting 237 physical stores across 79 cities.
The company added 50 stores in FY25, marking its largest physical expansion to date.
Its profitable store network achieved a 31 percent year-on-year GMV growth and a 15 percent increase in same-store sales growth (SSSG), reinforcing its leadership in the beauty omnichannel retail space.
“In FY2025, the beauty vertical business witnessed a cumulative customer base growth to over 34 million (an 28 percent year-on-year increase). The EBITDA margin for the beauty vertical businesses as a percentage of NSV rose to 9.6 percent in Q4 FY25, the highest in eight quarters, showcasing robust operational performance.
The company's Board has also sanctioned the appointment of S.N. Ananthasubramanian & Co as Secretarial Auditors for a term of five consecutive years, starting from financial year 2025-26 until financial year 2029-30, pending the approval of the company’s shareholders at the upcoming 13th Annual General Meeting.
Point of View
I believe it's crucial to analyze Nykaa's recent profit decline within the broader context of the retail landscape. While the drop in earnings raises concerns, Nykaa's ongoing expansion and significant customer base growth indicate resilience and a potential for recovery. Stakeholders should keep a keen eye on Nykaa’s strategies moving forward.
NationPress
16/06/2025
Frequently Asked Questions
What was Nykaa's net profit in Q4 FY25?
Nykaa reported a net profit of Rs 19.05 crore in Q4 FY25, reflecting a 27.86% decrease from the previous quarter.
How much did Nykaa's total income decrease?
Nykaa's total income fell by 8.89% to Rs 2,070 crore in Q4 FY25, down from Rs 2,272.74 crore in Q3 FY24.
What is the GMV growth for Nykaa in FY25?
Nykaa's consolidated gross merchandise value (GMV) increased by 25% year-on-year, reaching Rs 15,604 crore for FY25.
How many stores does Nykaa have now?
Nykaa now operates 237 physical stores across 79 cities, having added 50 new stores in FY25.
What was the EBITDA margin for Nykaa's beauty vertical in Q4 FY25?
The EBITDA margin for Nykaa's beauty vertical reached 9.6% in Q4 FY25, the highest in eight quarters.
