FSN E-Commerce Ventures Ltd. (Nykaa) posted a 66% increase in consolidated net profit to ₹13 crore for Q2 FY25, compared to ₹7.8 crore in the same quarter last year. For the first half of FY25, the consolidated net profit doubled to ₹26.6 crore from ₹13.2 crore in H1 FY24, demonstrating strong profit momentum despite increased investments in marketing.
The beauty and fashion e-commerce platform’s consolidated revenue for Q2 FY25 grew 24% to ₹1,874.7 crore, while H1 FY25 revenue increased by 24% to ₹3,620.9 crore. The company’s Q2 consolidated EBITDA rose 29% to ₹103.7 crore, with EBITDA margin improving to 5.5% from 5.4% in the corresponding quarter.
In the beauty vertical, which continues to be the major revenue contributor, H1 FY25 revenue grew 24% to ₹3,296.4 crore, maintaining a healthy EBITDA margin of 8.6%. The fashion segment, while still in investment phase, demonstrated 22% revenue growth to ₹314.7 crore, with improving unit economics as EBITDA losses reduced from -13.0% to -9.1%.
The company’s consolidated GMV (Gross Merchandise Value) reached ₹6,973.4 crore in H1 FY25, with beauty contributing ₹5,326.3 crore (+28% YoY) and fashion adding ₹1,637.4 crore (+12% YoY). Marketing expenses for Q2 increased 40% to ₹236.5 crore, reflecting the company’s focus on growth and market expansion.
Operational efficiency improved with fulfillment costs declining to 9.3% of revenue in Q2 from 9.7% year-over-year, despite absolute costs growing 20% to ₹174.8 crore. Employee costs showed better management at 8.6% of revenue in Q2, down from 9.0% in the same quarter last year.
The balance sheet remained robust with total assets of ₹3,723.4 crore as of September 30, 2024. Inventory position stood at ₹1,411.1 crore with inventory days at 68, up from 63 days at the end of March 2024, positioning the company well for the festive season demand.
