Nykaa shares rally 6% after strong Q2 profit, revenue growth

Shares of FSN E-Commerce Ventures, which operates Nykaa rose 5.7% to their day’s high of Rs 187.85 on the BSE on Wednesday after the company reported strong numbers in the second quarter ended September 2024.

Nykaa reported 66% growth in its consolidated net profit at Rs 13 crore in the second quarter. It was Rs 7.8 crore in the last quarter.

Revenue from operations in the reporting period rose 24% year-on-year (YoY) to Rs 1875 crore. The company reported an EBITDA growth of 29% YoY to Rs 104 crore in the reporting quarter, while margins improved 18 bps to 5.5%.


The beauty vertical recorded a 29% YoY GMV growth, reaching Rs 2783 crore in Q2FY25. This was fuelled by new customer acquisition growth of 31% YoY, bringing Nykaa's cumulative beauty customer base to 30 million and One Nykaa cumulative base to 37 million.

Also Read: Nykaa Q2 Results: PAT jumps 66% YoY to Rs 13 crore; revenue rises 24%

This contributed to a 22% YoY rise in annual unique transacting customers and a 24% YoY increase in total orders.

Nykaa now operates India’s largest beauty retail network of 210 physical stores spanning 72 cities. There was 25% YoY growth in retail space, including two new flagship stores launched in Mumbai and Delhi. With GMV of Rs 3,500 per square feet per month, Nykaa enjoys industry leading retail store productivity.

Nykaa’s distribution business, Superstore by Nykaa, continued to see strong GMV growth of 80% YoY as it expanded its operations across the country.

The platform now serves over 235,000 transacting retailers across 1,060+ cities and towns. The business saw significant improvement in profitability with contribution margin improving by 862 bps YoY, to -11.5% in Q2FY25 from -20.1% in Q2FY24.

This was achieved with growing share of featured brands and increasing ad income driving 334 bps of gross margin expansion along with cost efficiencies in fulfilment and selling and distribution.

Nykaa Fashion witnessed a healthy revenue growth of 22% YoY. GMV grew 10% YoY, with ‘First in Fashion’, representing new season sales, growing 26% YoY showcasing strong demand in targeted segments.