Shares of FSN E‐Commerce Ventures, the operator of beauty platform Nykaa, will be in focus on April 7, after the internet firm shared its business update for the quarter ended March, 2025.
Nykaa witnessed a continued growth momentum in Q4, and the firm's consolidated net revenue is expected to grow in low to mid twenties on-year. "With this, Nykaa’s full financial year FY2025 revenue growth is estimated to be at similar levels in mid‐twenties, indicating consistent growth across all quarters of FY2025," said the firm in an exchange filing.
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The company’s Beauty vertical continued to outperform the broader industry, with Gross Merchandise Value (GMV) growth projected in the low thirties. Nykaa attributed this to sustained investments in customer acquisition, strong order volume growth, and robust retail performance.
Another key growth lever has been the ‘House of Nykaa’ strategy, with both homegrown and acquired brands performing strongly. Net revenue growth for the Beauty business remained steady in the mid-twenties, in line with recent quarters.
Nykaa’s Fashion vertical, meanwhile, saw GMV growth in the high teens, reflecting a sequential improvement in the core platform business. However, net revenue growth lagged due to a subdued performance from its owned brands and a dip in content-driven activity in Q4, which typically sees higher engagement in the festive-heavy third quarter.
Japanese brokerage Nomura reiterated its neutral call on the internet player, with a target price of Rs 190 per share. The brokerage said that the beauty and personal care GMV growth was along expected lines, however, while it predicted 11.1 percent growth for the fashion segment's GMV as against the high teens growth reported. Overall, Nomura had predicted mid-20s revenue growth, at around 25 percent for the firm in Q4.
Over the past year, shares of Nykaa have traded flat, falling one percent.
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