Nykaa’s Q2 FY25 Results: 24% Revenue Surge and New Beauty Ventures Spark Growth!

Financial Highlights

• GMV & Revenue Growth: Nykaa reported a consolidated Gross Merchandise Value (GMV) of ₹36,525 million, a 24% increase year-over-year (YoY). Consolidated revenue from operations also rose by 24% YoY, reaching ₹18,747 million in Q2 FY25.
• EBITDA Growth: The EBITDA grew 29% YoY to ₹1,037 million, indicating strong profitability gains.
• Profit Metrics:
  • Revenue: Up 24% YoY to ₹18,747 million.
  • Gross Profit: Increased by 26% YoY, reaching ₹8,210 million.
  • Profit Before Tax: Grew significantly by 60% YoY, totalling ₹213 million.
  • Net Profit: Improved by 66% YoY to ₹130 million.

Business Highlights

Beauty: Multibrand Retail

• Store Network Expansion: Nykaa has India’s largest beauty retail network with 210 stores across 72 cities, a 25% YoY increase in retail space. Two new flagship stores were opened in Mumbai and Delhi, achieving an average GMV of approximately ₹3,500 per square foot per month.
• New Global Brands: Nykaa added 170+ brands this quarter, including YSL Beauty from L’Oreal and Dr Jart+ from Estée Lauder.
• Supporting Beauty Entrepreneurs: Nykaa, in partnership with Estée Lauder, held the Beauty & You program, fostering the growth of new Indian beauty entrepreneurs.

Beauty: Owned Brands

• Owned Brands Performance: Nykaa’s own beauty brands saw 48% YoY GMV growth, reaching ₹3,602 million. The company expanded its investments in brands like Dot & Key and Earth Rhythm alongside the growth of Kay Beauty, Nykaa Cosmetics, and Wanderlust.

Beauty: Superstore by Nykaa

• Distribution Business Expansion: The Superstore by Nykaa saw an 80% YoY increase in GMV, now serving over 235,000 retailers across 1,060+ locations. Profitability improved with an 862 basis point increase in contribution margin to -11.5% from -20.1% YoY, driven by a higher share of featured brands and cost efficiencies.

Fashion Segment

• Revenue and Profit Growth: Nykaa Fashion achieved a 22% YoY revenue increase, with GMV growing by 10% YoY. The focus on ‘First in Fashion’ new-season sales, which grew 26% YoY, is driving demand. Improved cost efficiencies raised gross margins by 567 basis points to 49.7%.
• Foot Locker Partnership: Nykaa launched Foot Locker on its platform, aiming to capture the growing sneaker market in India, expected to reach $6.5 billion by 2027. The partnership includes a dedicated Foot Locker India website and Nykaa platform integration.

These consolidated results include Nykaa’s subsidiaries and its owned brands like Dot & Key, Kay Beauty, and Earth Rhythm.

On November 13, 2024, Nykaa share price opened at ₹179.01, touching the day’s low of ₹173.90 as of 10:02 AM on NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.