Supported by strong growth across its beauty verticals, increased margins, and a continuous shift towards owned and premium brands, FSN E-Commerce Ventures, the parent company of Nykaa, reported a significant improvement in profit and operating performance in the fourth quarter and full year ending March 2025.
While operating revenue increased 24 per cent year over year to Rs. 2,062 crore (US $ 240 million), the Mumbai-based company recorded a 110 per cent increase in net profit to Rs. 19 crore (US $ 2.22 million) in the March quarter. Annual sales increased 24 per cent to Rs. 7,950 crore (US $ 929 million) during the fiscal year, while net profit increased 81 per cent to Rs. 72 crore (US $ 8.41 million).
Nykaa’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 43 per cent to Rs. 133 crore (US $ 15.54 million) during the quarter, increasing the EBITDA margin from 5.6 per cent to 6.5 per cent over the same period last year. EBITDA for the entire year was Rs. 474 crore (US $ 55.4 million), up 37 per cent from FY ’24, and margins improved to 6.0 per cent.
For the quarter, the company’s gross merchandise value (GMV) was Rs. 4,102 crore (US $ 479 million), a 27 per cent increase over the previous year.
Nykaa Fashion’s Q4 GMV increased 18 per cent year over year, indicating a comeback. GMV increased by 12 per cent over the course of the year, while revenue increased by 19 per cent thanks to increased service income and marketing alliances. Throughout the year, the company expanded its fashion portfolio by over 800 labels, including both domestic and international names including Rare Rabbit, Snitch, and Victoria’s Secret.
EBITDA margins improved from -10.3 per cent in FY ’24 to -8.3 per cent in FY ’25, indicating a narrowing of losses in the fashion area. Better gross margins and cost control across fulfilment and other expenses were cited by Nykaa as the reasons for this.
