Nykaa, the leading omnichannel beauty and personal care brand, has reported a strong performance in the fourth quarter of the financial year 2025 (Q4 FY25), with its beauty vertical driving significant growth. The company’s consolidated net revenue is expected to rise in the low to mid-twenties on a year-on-year basis, reflecting consistent growth across all quarters of FY25.

Nykaa’s beauty segment has been the standout performer, with Gross Merchandise Value (GMV) growth projected in the low thirties, significantly outpacing industry benchmarks. This robust performance is attributed to sustained investments in customer acquisition, strong retail performance supported by same-store sales growth, and the aggressive expansion of its retail network. In Q4 FY25, Nykaa added 19 new stores, further enhancing its offline presence across India.

The success of Nykaa’s homegrown and acquired brands under the ‘House of Nykaa’ banner has also been a key driver of growth. These brands have resonated well with consumers, contributing to the overall momentum in the beauty vertical.

While Nykaa’s fashion segment has shown signs of recovery, it has not matched the pace of the beauty division. The fashion vertical is expected to post GMV growth in the high teens, with a sequential improvement in the core platform business.

However, net revenue growth has been impacted by a muted performance from Nykaa Fashion-owned brands and lower content-related activity in Q4 FY25, which typically peaks during the festive third quarter.

Key Drivers of Growth

• Several factors have contributed to Nykaa’s sustained growth momentum:
• Customer Acquisition: Investments in customer acquisition have led to consistent order volume growth, driving sales across both online and offline channels.
• Retail Expansion: The addition of 19 new stores in Q4 FY25 has significantly enhanced Nykaa’s retail footprint, supporting strong same-store sales growth.
• House of Nykaa: The success of both homegrown and acquired brands under this umbrella has been instrumental in maintaining robust growth in the beauty segment.

Nykaa’s net profit for the third quarter of FY25 was Rs 26.41 crore, marking a significant increase from the previous year. The company’s overall financial performance is expected to remain strong, with revenue growth in the mid-twenties for FY25. Despite a slight dip in investor sentiment, Nykaa remains optimistic about its future prospects, driven by the continued success of its beauty vertical.

Key Highlights:

• Nykaa’s beauty vertical has driven robust growth in Q4 FY25, with GMV growth in the low thirties.
• The company’s overall revenue growth is expected to be in the low to mid-twenties on a year-on-year basis.
• Key drivers include customer acquisition, retail expansion, and the success of ‘House of Nykaa’ brands.
• The fashion segment has shown recovery but lags behind the beauty division in terms of growth.