Nykaa Sees Q4 Profit Surge as Margins Improve Significantly

FSN E-Commerce Ventures, the parent company of Nykaa, reported a 110% year-on-year (YoY) jump in consolidated net profit to ₹19 crore for the quarter ended March 2025. The robust performance was led by margin expansion in the beauty business, improved cost efficiencies, and stronger contributions from its eB2B and retail segments.

Revenue for Q4 stood at ₹2,062 crore, reflecting a 24% YoY growth, while EBITDA surged 43% to ₹133 crore. The EBITDA margin improved to 6.5% compared to 5.6% a year earlier, signaling enhanced profitability.

FY25 Performance: Revenue and Profit Rise with Retail and Brand Expansion

For the full fiscal year FY25, Nykaa reported consolidated revenue of ₹7,950 crore, up 24% YoY. The company’s Gross Merchandise Value (GMV) reached ₹15,604 crore, growing 25% annually. Net profit for the year rose 81% to ₹72 crore, driven by increased scale, operating leverage, and contributions from owned brands.

Beauty Vertical Leads Growth with Record Margins

Nykaa’s core beauty business continued to be the growth engine, reporting GMV of ₹11,775 crore in FY25—a 30% YoY increase. Anchit Nayar, CEO of Nykaa Beauty, said, “In Q4, we delivered a 9.6% EBITDA margin in beauty, the highest in eight quarters. This reflects improved gross margins and cost discipline.”

The company’s House of Nykaa portfolio saw impressive traction, crossing ₹1,700 crore in GMV. Leading the segment was Dot & Key, with a GMV of over ₹900 crore, followed by Nykaa Cosmetics (₹350 crore) and Kay Beauty (₹240 crore).

Dot & Key Emerges as Top Performer in Skincare

Post-acquisition, Dot & Key has emerged as a category leader across marketplaces. Anchit highlighted that its growth was supported by innovative product formats and high customer retention. The brand now ranks among India’s top skincare players.

Offline Retail Sees Biggest Expansion Year Yet

Nykaa added 50 offline stores in FY25—its largest annual retail expansion—bringing the total store count to 237 across 79 cities. The offline segment recorded a 31% YoY growth in GMV, while same-store sales increased by 15%. Anchit Nayar emphasized that “offline beauty retail is delivering both growth and profitability.”

eB2B Arm Superstore Posts 57% Growth

Nykaa’s eB2B unit, Superstore by Nykaa, posted GMV of ₹941 crore, a 57% increase over FY24. Contribution margin improved by 484 basis points to -12.6%, indicating better operational control. The unit was recently demerged into Nykaa E-Retail after getting the nod from the National Company Law Tribunal (NCLT).

Fashion Vertical Shows Signs of Recovery

Although Nykaa Fashion has historically underperformed due to weaker operating leverage, Q4 showed signs of improvement. GMV rose 18% YoY, while full-year GMV grew 12%, aided by higher marketing income and platform fees. The segment’s EBITDA margin improved to -8.3% in FY25, from -10.3% in FY24.

Strategic Shift Towards Profitability in Fashion

Abhijeet Dabas, EVP and Business Head of Fashion E-commerce, explained that Nykaa Fashion is focusing on curated assortments, private labels, and driving retention from high-intent users. “This is not a GMV-first strategy. We’re prioritizing contribution margin and repeat business,” he stated.

Focus Ahead: Margin Expansion Across Verticals

Commenting on the overall outlook, Chairperson and MD Falguni Nayar said, “FY25 reflects our ability to grow consistently while improving profitability. The focus now is on margin expansion and operational discipline across all verticals.”

Conclusion

Nykaa’s Q4 and FY25 earnings indicate a strategic shift toward profitable growth, especially in the beauty vertical. With strong brand performance, offline expansion, and improving unit economics in fashion and eB2B, Nykaa appears poised for continued growth with improved margins.