Nykaa, operated by FSN E-Commerce Ventures Ltd., reported its Q4 FY25 results on May 30, 2025, demonstrating a significant leap in profitability. The company posted a consolidated net profit of ₹20 crore, a 193% year-on-year surge. Its revenue rose by 24% year-on-year, reaching ₹2,061.76 crore for the quarter. These numbers reflect the company’s renewed focus on operational excellence, expansion into new verticals, and cost discipline.
Nykaa’s performance in Q4 capped off a transformative year. The beauty and fashion e-commerce platform, once under scrutiny for profit stagnation after its IPO, has now reclaimed investor confidence. The company attributed its turnaround to strategic initiatives across product lines, technology, logistics, and marketing.
Breaking Down the Numbers
In Q4 FY25, Nykaa recorded ₹2,061.76 crore in consolidated revenue from operations. This figure represented a 24% jump compared to ₹1,653.2 crore in Q4 FY24. The company also saw strong growth in its gross merchandise value (GMV), which increased by 30% year-on-year, reaching ₹3,400 crore.
Nykaa’s net profit rose sharply to ₹20 crore from ₹6.8 crore in the same quarter last year. The management credited multiple factors for this improvement, including better supply chain efficiency, a sharper focus on high-margin private labels, and reduced marketing overheads.
The company managed to keep its EBITDA (earnings before interest, tax, depreciation, and amortization) margin steady at around 5.2%. Despite inflationary pressures and increased competition, Nykaa maintained financial discipline and used data-driven strategies to improve its unit economics.
Segment-Wise Performance
Nykaa operates across two primary business verticals: Beauty and Personal Care (BPC) and Fashion. It also runs newer verticals such as NykaaMan, Superstore, and Nyveda.
Beauty and Personal Care (BPC)
Nykaa’s BPC vertical contributed the largest share to its revenue. The segment grew by 21% year-on-year in terms of GMV. The company added new global brands, launched curated content-driven campaigns, and strengthened offline retail presence. Nykaa’s store count grew to 186 by the end of March 2025, compared to 160 stores in March 2024.
The company saw increased traction in Tier 2 and Tier 3 cities, which now contribute nearly 60% of BPC segment sales. Customers in these regions showed growing interest in skincare, luxury cosmetics, and wellness products. Nykaa optimized last-mile delivery to serve these locations faster and more efficiently.
Fashion Segment
Nykaa’s fashion vertical also performed well, contributing nearly 30% of total GMV. The segment grew 38% year-on-year, aided by personalized discovery features, influencer-led campaigns, and a broader apparel selection.
Nykaa focused on improving the quality of merchandise by onboarding premium and mid-range brands while trimming down non-performing labels. The company also reduced return rates through better sizing tools and accurate product listings.
The Fashion business faced margin pressures earlier in FY25, but Nykaa tightened discount policies and launched exclusive capsule collections under its own labels. These steps improved gross margins and helped achieve operational breakeven for the segment.
Offline Retail and Omnichannel Strategy
Nykaa continued to expand its physical retail network in FY25. The company opened 26 new stores across metros and mini-metros. Each new outlet followed a data-led site selection model, focusing on locations with high digital engagement and underserved customer clusters.
Rather than treating offline and online as separate channels, Nykaa integrated them under a unified omnichannel strategy. Customers could view online inventory at nearby stores, use in-store pickup options, and redeem loyalty points across platforms.
This approach helped boost customer retention rates and average order values. Nykaa’s app also received a major overhaul, offering AR-based try-ons, skin diagnostic tools, and real-time expert consultations. These features bridged the gap between the online and in-store experiences.
Private Labels and Vertical Integration
Nykaa invested heavily in its private label brands during FY25. Products under its in-house labels like Nykaa Cosmetics, Kay Beauty, Dot & Key, and Earth Rhythm contributed more than 15% of overall GMV.
The company scaled up manufacturing capacity by partnering with third-party units and investing in its own R&D facilities. It introduced new product lines in makeup, haircare, babycare, and wellness. These in-house brands provided better control over quality, faster innovation cycles, and higher gross margins.
Nykaa also explored backward integration by acquiring small-scale formulation labs and packaging units. These steps ensured consistency in product delivery and reduced costs in the long term.
Cost Optimization and Profitability Drivers
The company improved profitability not only by growing revenue but also by optimizing costs. Nykaa rationalized its marketing expenses by cutting down on inefficient influencer campaigns and shifting to performance-driven media buys.
It automated several backend operations using AI, including inventory forecasting, customer segmentation, and ad campaign optimization. These technologies reduced overhead and enabled the company to scale without proportionally increasing fixed costs.
Nykaa also renegotiated contracts with logistics partners and adopted dynamic warehousing to lower fulfillment costs. Average delivery times reduced by 18%, and fulfillment-related expenses declined by 12% compared to the same period last year.
Investor Confidence and Market Sentiment
Nykaa’s Q4 results impressed both institutional and retail investors. The stock gained over 8% in intraday trading on the day of the announcement. Analysts revised their target prices upward, citing robust fundamentals and scalability.
Brokerage firms applauded the management’s clear execution strategy and focus on sustainable profitability. Many analysts upgraded the stock from “Hold” to “Buy,” especially after the company declared its intent to maintain profitability in the coming quarters.
Investor confidence also increased due to Nykaa’s improved governance practices. The company published a detailed sustainability report, improved board independence, and enhanced disclosures around ESG metrics.
Looking Ahead: FY26 Outlook
Nykaa aims to maintain its growth trajectory in FY26. The company will launch new product categories, expand retail footprint to 220 stores, and enter international markets through pilot programs in Southeast Asia and the Middle East.
It plans to invest ₹150 crore in technology upgrades, AI-powered personalization, and backend automation. The focus will remain on expanding margins, enhancing customer lifetime value, and increasing wallet share.
The company also intends to deepen its loyalty ecosystem. A revamped Nykaa Privé program will offer benefits across beauty, fashion, and wellness, with integrated tier-based rewards and cross-category bundling.
Nykaa’s management expressed optimism about sustained demand from urban and semi-urban consumers. With rising disposable incomes, digital penetration, and increasing beauty awareness, the company believes the Indian market holds vast potential.
Conclusion
Nykaa delivered an impressive Q4 FY25 performance with a 193% jump in net profit and a 24% increase in revenue. The company achieved these results by executing a well-rounded strategy focused on private labels, offline expansion, omnichannel integration, and digital innovation. With strong fundamentals and a clear roadmap, Nykaa now stands as a mature, scalable business that continues to shape India’s beauty and fashion e-commerce landscape.
