Nykaa’s parent company, FSN E-Commerce Ventures, saw its shares soar by 5.3% in intraday trade on Monday, January 6, reaching a 2-week high of ₹176.60 per share. This strong response from investors comes after the company released its Q3 FY25 business update on January 5.
Q3 Update
The company announced a strong performance in Q3 FY25 and expects consolidated net revenue growth to exceed the mid-twenties. This is greater than the consolidated GMV growth during the same time, demonstrating a favourable trend in GMV-to-net revenue translation.
The company reported that its beauty vertical accelerated in the December quarter compared to previous quarters, with net revenue growth topping the mid-20s. It expects GMV growth for beauty to be in the low thirties, reflecting strong momentum across all of its beauty businesses—e-commerceplatformsm, retail shops, owned brands, and eB2B distribution.
Superstore by Nykaa, which contributed 8% of the beauty vertical’s GMV (up from 7% a year ago), continues to grow rapidly, now serving around 260,000 transactional shops in 1,100+ cities.
Furthermore, the business expects its fashion vertical to grow net revenue by roughly 20%, while NSV growth will be in the low to mid-teens, showing sustained strong growth in content, marketing, and service-related revenue. The company feels that online fashion demand is still low, but it remains hopeful about the long-term development potential.
By FY29, the cosmetics area is likely to maintain its majority position of Nykaa, while fashion’s share is expected to rise from 16% to 21%. In the beauty area, the company intends to maintain a market share of more than 30% while expanding further. In the fashion segment, the company aims to achieve positive EBITDA by FY26E.
Meanwhile, the company, which entered the GCC market in March with the brand “Nysaa,” anticipates significant growth potential in the region as a result of high per capita consumption and rapid market expansion. The company intends to use its knowledge in the Indian market to increase profitability and market share in the GCC.
