Quadruple increase in Nykaa's quarterly earnings primarily driven by surging demand for beauty products
In a significant development, Indian e-commerce giant Nykaa has announced a 23% increase in its overall revenue, with a staggering 61% growth in profit for the quarter. The parent company of Nykaa, FSN E-Commerce Ventures, reported a quarterly profit of 233.2 million rupees ($2.66 million).
The growth in Nykaa's revenue can be attributed to the success of its beauty and fashion businesses. The beauty business revenue rose by 24% to 19.75 billion rupees, while the fashion business saw a 15% increase.
Nykaa's beauty business growth was driven by a focus on reaching more customers and offering higher-end products. The company added luxury offerings such as Chanel, Korean skincare label Aestura, and sunscreen maker Supergoop to its product line-up. In the fashion segment, the introduction of global premium brands like Swarovski and Victoria’s Secret bolstered the growth.
Nykaa also expanded its in-house brands, with brands like Dot & Key, Nykaa Cosmetics, and Kay Beauty showing strong growth and wider distribution, including offline channels and international markets for Kay Beauty. The company also fully acquired Nudge Wellness, expanding its presence in dietary supplements and nutricosmetics.
These brand additions and portfolio expansions have contributed significantly to Nykaa’s revenue growth. The in-house brands achieved a 55% year-on-year GMV growth to ₹1,695 crore in FY25 and are available in over 38,000 offline points plus online channels, boosting omnichannel sales. The fashion segment's GMV rose 25% to ₹964 crore, while the beauty segment's GMV reached ₹3,208 crore.
Nykaa's strategic focus on fast delivery ("Nykaa Now"), AI personalization, and expanding the offline footprint into 110+ cities supports sustained top-line growth, with revenue growth forecasted in the mid-20% range and profitability improving.
Meanwhile, the beauty and personal care industry in India, worth $28 billion, has seen growth due to increased spending on skincare and cosmetics by Indians, particularly the affluent. However, the funding landscape for Private Equity (PE) and Venture Capital (VC) investments has been affected by a lack of significant transactions and lower volume.
Despite this, Nykaa continues to attract interest from both Indian and overseas investors for potential investment. The valuation of internet-related businesses like Paytm and Zomato is being determined on stock markets.
In summary, the introduction of high-profile international brands and the expansion of in-house brands have strengthened Nykaa’s product offering across beauty and fashion, directly driving incremental GMV and revenue growth. Their omnichannel strategy and robust marketing investments have translated these additions into a tangible uplift in customer base, order volumes, and geographic reach, fueling Nykaa's continued revenue momentum and improved profitability outlook.
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