FSN E-Commerce Ventures, the parent of Nykaa, posted a sharp improvement in profit and operating performance in the fourth quarter and full year ended March 2025, supported by robust growth across its beauty verticals, improved margins, and a continued shift toward owned and premium brands.
The Mumbai-based company reported a 110% increase in net profit in the March quarter to Rs 19 crore, while revenue from operations grew 24% year-on-year to Rs 2,062 crore. For the full fiscal year, net profit rose 81% to Rs 72 crore, with annual revenue climbing 24% to Rs 7,950 crore.
Nykaa’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 43% in the quarter to Rs 133 crore, pushing the EBITDA margin up to 6.5% from 5.6% in the year-ago period. On a full-year basis, EBITDA stood at Rs 474 crore, an increase of 37% from FY24, with margins improving to 6.0%.
The company’s gross merchandise value (GMV) for the quarter reached Rs 4,102 crore, up 27% year-on-year. For the full year, GMV crossed R\s 15,600 crore, a 25% increase.
Beauty drives growth amid offline expansion
Nykaa’s beauty business continues to account for the bulk of its revenue. In FY25, the beauty vertical posted GMV of Rs 11,775 crore, growing 30% over the previous year. The company said growth was driven by continued customer acquisition and higher order volumes.
Offline retail expansion remained a key contributor, with 50 new stores opened during the year—the company’s biggest annual increase to date. Nykaa now operates 237 physical stores across 79 cities, making it the largest specialized beauty retailer in India. Its physical store network recorded 31% GMV growth and 15% same-store sales growth in FY25.
The company’s portfolio of owned beauty brands, including Dot & Key, Nykaa Cosmetics, and Kay Beauty, generated a combined GMV of nearly Rs 1,700 crore. Dot & Key, a skincare brand acquired in FY22, reached Rs 900 crore in GMV, growing 12-fold since its acquisition.
The brand expanded its retail reach to over 20,000 points of sale and launched new sunscreen variants alongside its flagship Watermelon Cooling Sunscreen. Nykaa’s flagship makeup brand, Nykaa Cosmetics, crossed Rs 350 crore in GMV for FY25, while Kay Beauty, co-created with actor Katrina Kaif, posted GMV of Rs 240 crore.
Kay Beauty also expanded internationally via Nysaa into the Gulf Cooperation Council (GCC) region, where it now ranks among the top five beauty brands on the platform.
Superstore sees 57% surge, profitability improves
Nykaa’s eB2B vertical, operated under Superstore by Nykaa, reported GMV of Rs 941 crore in FY25, up 57% year-on-year. The platform now serves over 276,000 transacting retailers across 1,100 cities and towns.
The business also saw an improvement in contribution margin, narrowing its deficit from -17.4% to -12.6%, driven by a higher mix of owned and featured brands and improved operational efficiency. Across the beauty business, Nykaa’s cumulative customer base grew to over 42 million users, up 28% from a year earlier.
Beauty vertical EBITDA margin as a percentage of net sales value rose to 9.6% in Q4, its highest in eight quarters.
Fashion recovers, content integration advances
Nykaa Fashion showed signs of recovery with GMV rising 18% year-on-year in Q4. For the full year, GMV rose 12%, while revenue grew 19% aided by higher service income and marketing partnerships. The company added over 800 brands to its fashion portfolio during the year, including global and local names such as Victoria’s Secret, Snitch, and Rare Rabbit.
Losses narrowed in the fashion segment, with EBITDA margins improving from -10.3% in FY24 to -8.3% in FY25. Nykaa attributed this to improved gross margins and cost control across fulfillment and other expenses.
Demergers and mergers approved
During the year, the company secured approvals for two internal restructurings aimed at consolidating its operations. The National Company Law Tribunal (NCLT) approved the demerger of its eB2B operations from FSN Distribution to Nykaa E-Retail on May 9, 2025. This move brings Nykaa’s online beauty operations under a single entity, enabling tighter alignment of infrastructure and brand partnerships.
Separately, on May 27, the NCLT approved the merger of Iluminar Media (formerly Little Black Book) into Nykaa Fashion. FSN E-Commerce Ventures had acquired LBB in August 2022.
The company said the integration would bolster Nykaa’s content-led marketing capabilities and help deepen engagement with both consumers and brand partners. Recently, Nykaa launched a long-anticipated partnership with Chanel Beauty and Fragrances. Chanel’s range is now available through dedicated experiences online and in select Nykaa Luxe stores.
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