Nykaa sees revenue growth in the mid-20s in the second quarter

In its quarterly update, Nykaa said its cosmetics division recorded strong performance, with both net revenue and net sales value (NSV) growing in the mid-20% range.

Nykaa’s fashion industry continued to lag and its NSV increased among teenagers

The company said there was a slight slowdown in consumption in the first half of FY25, however it remains optimistic about a rebound in demand in the second half

Specializes in e-commerce related to beauty and fashion Nykaa said its consolidated net revenues grew in the “mid-20s” in the second quarter of the current fiscal year 2024-25 (25).

In its quarterly update, Nykaa said its cosmetics division recorded strong performance, with both net revenue and net sales value (NSV) growing in the mid-20% range. It added that gross merchandise value (GMV) growth was even higher.

“Ahead of the festive season, good overall performance was observed in the retail segment across multiple channels, owned brands, as well as in the eB2B distribution segment. Dot & Key, the new age skincare brand, continues to grow rapidly, including: Nykaa increases stake to 90% at the beginning of this financial year,” the Falguni Nayar-led company said

However, Nykaa’s fashion industry continues to lag behind. The NSV of the fashion segment has increased among teenagers. Overall revenue growth reached a low 20%, which the company said was partly due to the content platform acquisition The Little Black Book (LBB).

It is worth noting that Nykaa decided to merge LBB from Nykaa Fashion earlier this year.

The company said there was a slight slowdown in consumption in the first half of FY25, but it remains optimistic about a rebound in demand in the second half, helped by the festive and wedding seasons.

Nykaa fashion industry was turns out he’s lazy over the last few quarters in the face of increasing competition. In Q1 FY25, the fashion segment’s GMV increased only 15% YoY (YoY) to INR 774.1 Cr

Overall, the company is consolidated net profit increased by almost 152% to 13.6 Cr in Q1 FY25 from 5.4 Cr a year ago. Operating revenue increased by 22.8% to Rs 1,746.1 Cr in the reported quarter from Rs 1,421.8 Cr in Q1 FY24.

Nykaa wants to further increase its revenues by expanding into the Middle East. As part of this push recently established two new subsidiaries in Qatar and Saudi Arabia under the Nysaa brand.

Nykaa shares ended Monday’s (October 7) trading session with a gain of 0.9% at INR 193.95 on the BSE amid bloodshed in new-age technology stocks.