Nykaa parent FSN E-commerce nearly triples Q4 profit on robust beauty business

FSN Ecommerce Ventures, the parent company of beauty ecommerce platform Nykaa, nearly tripled its after-tax profit, buoyed by the robust performance of its core beauty and personal care (BPC) businesses.

During the March quarter, the startup earned Rs 20.28 crore net profit, compared with Rs 6.93 crore it posted in the corresponding quarter of the previous year as the margins of its core business improved.

The Mumbai-based player saw its operational revenue surge 23% year-on-year (YoY), from Rs 1,667.9 crore to Rs 2,061 crore in the fourth quarter of FY25, according to regulatory filings made with NSE.

The Falguni Nayar-led company also saw its expenses rise by 22.7% YoY to Rs 2,031 crore in the fourth quarter, mostly hurt by employee benefit expenses, finance costs and depreciation expenses.

During the quarter, the company allotted 90,500 equity shares, worth around Rs 1.49 crore, under its ESOP scheme.

Its core beauty and personal care vertical delivered a 24% YoY growth in topline to Rs 1,894 crore. However, on a quarter-over-quarter basis, this segment saw a decline in income from Rs 2,060 crore earned in Q3. The segment, which majorly accounts for the company's flagship ecommerce platform, saw a profit of Rs 103.6 crore. This was further helped by its inclusion of the B2B segment within the BPC business.

In a statement to the stock exchanges filed earlier, the company said it expects GMV growth for its core segment, led by Anchit Nayar, to be driven by strong retail performance and same-store sales growth. Also, it noted that investments in customer acquisition over the past several quarters have led to consistent order volume growth.

Nykaa's fashion vertical, which competes with Myntra, Tata Cliq Fashion and Ajio, saw a further decline in its bottom line, with a loss of Rs 36.4 crore from Rs 29.1 crore in the corresponding quarter in the previous year. However, the segment's revenue rose by 10% to Rs 161 crore.

Shares of the company were trading 1.81% lower on the NSE, closing the trading at Rs 200.8 apiece.