Nykaa Share Price Falls Over 4% After Q4FY25 Earnings Results

Nykaa, operated by FSN E-Commerce Ventures Limited, released its financial results for the quarter and full year ended March 31, 2025. The company posted impressive numbers across the board, including a significant improvement in profitability and continued revenue growth. However, despite the strong performance, Nykaa's share price fell over 4% in the market following the announcement, indicating that investors may have priced in the results or expected even stronger projections.

Nykaa Share Price Reacts Negatively to Q4FY25 Results

FSN E-Commerce Ventures Limited, popularly known as Nykaa, announced its financial results for the quarter and year ended March 31, 2025. Despite delivering robust performance across key financial metrics, Nykaa share price dropped over 4%.

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GMV and Revenue Witness Strong Double-Digit Growth

In Q4FY25, Nykaa recorded a Gross Merchandise Value (GMV) of ₹4,102 crore, reflecting a 27% year-on-year increase. Revenue from operations grew by 24% YoY to reach ₹2,062 crore during the quarter. This performance demonstrates the company’s continued expansion in the beauty, fashion, and lifestyle segments.

For the full financial year FY2025, consolidated GMV stood at ₹15,604 crore, registering a 25% growth YoY, while total revenue rose by 24% to ₹7,950 crore.

Profitability Strengthens with Margin Expansion

Nykaa reported a sharp improvement in profitability. EBITDA for Q4FY25 rose 43% YoY to ₹133 crore, with the EBITDA margin expanding to 6.5% compared to 5.6% in Q4FY24. Net profit surged 110% YoY to ₹19 crore during the quarter.

For FY2025, EBITDA grew 37% YoY to ₹474 crore, while net profit for the year stood at ₹72 crore, up 81% from the previous year. EBITDA margin for the year improved to 6.0%, up from 5.4% in FY2024.

Key Financial Highlights – Q4FY25

• Revenue from operations: ₹2,062 crore (up 24% YoY)
   
• Gross profit: ₹909 crore (up 28% YoY)
   
• EBITDA: ₹133 crore (up 43% YoY)
   
• EBITDA margin: 6.5% (vs 5.6% in Q4FY24)
   
• Profit before tax: ₹40 crore (up 102% YoY)
   
• Net profit: ₹19 crore (up 110% YoY)

Key Financial Highlights – FY2025

• Revenue from operations: ₹7,950 crore (up 24% YoY)
   
• Gross profit: ₹3,477 crore (up 27% YoY)
   
• EBITDA: ₹474 crore (up 37% YoY)
   
• EBITDA margin: 6.0% (vs 5.4% in FY2024)
   
• Profit before tax: ₹127 crore (up 85% YoY)
   
• Net profit: ₹72 crore (up 81% YoY)

Conclusion

Despite the upbeat earnings report, Nykaa share price declined over 4% post-results. As the stock price failed to impress the market participants. The decline may reflect profit-booking, concerns over valuation, or broader market volatility rather than a reflection of the company’s operational performance.

Nykaa continues to maintain its growth momentum while improving profitability, indicating steady progress in its journey as a leading e-commerce platform in India.

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