Nykaa increases ad spends by 40% in Q2FY25

FSN E-Commerce Ventures, the parent company of Nykaa announced its results for the quarter ending on September 30, 2024. The company reported a consolidated net profit of Rs. 10.04 crore reflecting a 71.6% increase from Rs. 5.85 crore in the same period last year.

Nykaa’s consolidated Gross Merchandise Value (GMV) grew by 24% YoY, reaching Rs.3,652.5 crores, while its consolidated revenue from operations rose to Rs.1,874.7 crores, reflecting a similar 24% YoY growth.

Nykaa’s marketing expenses saw a 40% increase, totalling Rs. 236.5 crore vs Rs.1,690 in the same quarter last year.  Fulfilment costs were 9.3% of revenue, a slight improvement from 9.7% in Sep-23, showing better operational efficiency. 

Jahnvi Kapoor, Tara Sutaria, and Sofia Tilbury attend Nykaaland 2.0

Business Segment Performance

Beauty Vertical

Nykaa’s beauty segment a primary revenue driver, recorded a 29% YoY GMV increase, reaching Rs.2,783.3 crores in Q2 FY25. The brand saw an expansion of physical retail with 210 stores across 72 cities, a 25% YoY increase in retail space.

It’s investment in high-demand, global brands saw over 170 new brand launches, including luxury names like Yves Saint Laurent and Dr. Jart+. Nykaa’s signature event, Nykaaland 2024, attracted over 25,000 beauty enthusiasts, a 1.7x increase from the previous year, with prominent content creators and brands present.

Nykaa 'Find Your Beautiful’ spot touts it as the perfect cosmetic fix

Owned Brands

Nykaa’s owned beauty brands also experienced a surge, with a 48% year-on-year GMV increase, reaching Rs.360 crores. The company expanded its holdings in Dot & Key and Earth Rhythm while bolstering offerings from Kay Beauty and Nykaa Cosmetics. The brand’s B2B platform, Superstore by Nykaa, registered an impressive 80% year-on-year GMV growth, expanding its network to serve over 235,000 retailers in 1,060+ cities.

Nykaa Fashion’s revenue rose 22% YoY, with a GMV increase of 10%. The fashion segment’s profit margins benefited from enhanced content income and cost efficiencies, leading to a 300+ basis points improvement in EBITDA margins.

Foot Locker partners with Metro Brands and Nykaa Fashion for India launch