Nykaa parent sees December quarter revenue growth at top end of mid-twenties

FSN E-Commerce Ventures, the parent company of beauty and fashion retailer Nykaa, said its consolidated net revenue growth for the December quarter is expected to come in at the upper end of the mid-twenties year-on-year, driven largely by continued momentum in its beauty business, according to a stock exchange filing on Sunday.

The company said consolidated gross merchandise value (GMV) and net sales value (NSV) growth for the quarter is likely to be in the late twenties.

This marks a slight acceleration from the revenue growth range maintained over the past few quarters, the filing noted.


Nykaa's beauty vertical is expected to report NSV growth in the late twenties, the highest in the past six quarters, helped by strong festive demand, higher contribution from its in-house brands and customer additions during its flagship Pink Friday sale.

The company said the December quarter was its largest so far in terms of absolute scale for the beauty segment. Net revenue growth for the beauty business is expected to be at the upper end of the mid-twenties.

The fashion business, however, continues to trail the beauty segment. Nykaa said NSV growth for the fashion vertical is expected to be in the mid-twenties during the quarter, while net revenue growth is likely to remain in the late teens.

The company attributed the gap between sales value and revenue growth in the fashion business to a subdued content and marketing income, as well as ongoing channel optimisation of its fashion-owned brands.

For the July-September quarter of the current fiscal, Nykaa had reported a 25% year-on-year growth in its revenue at ₹2,346 crore.

Nykaa currently operates its rapid delivery offering, Nykaa Now, across seven cities including Mumbai, Delhi and Bengaluru. As of its last earnings update, the company said it was servicing these orders through 53 stores, with delivery timelines ranging between 30 and 120 minutes.

The update, issued by the company, is provisional and subject to audit, it said in the filing.