Nykaa Q1 Update: Beauty Business Shines, Fashion Sees Revival in Q1 FY25

Market Performance

Nykaa shares are in the spotlight on Monday, July 7, following the release of its Q1 FY25 performance update. The stock ended the previous session 1.93% lower at ₹198.4, but it has recorded a 20.5% gain so far in 2025, signalling strong investor interest despite short-term fluctuations.

Main News

Nykaa, officially known as FSN E-Commerce Ventures Ltd., shared key insights into its performance for the June quarter:

• Nykaa expects its consolidated net revenue to grow at the lower range of the mid-20% bracket.
• Gross Merchandise Value (GMV) growth is projected to exceed mid-twenties, indicating sustained momentum across segments.
• Despite geopolitical disruptions that impacted flagship sale events, the company managed to maintain strong growth in its core verticals.

Company Details

Nykaa emphasised that all its business arms — including its e-commerce platform, retail stores, eB2B distribution, and House of Nykaa brands — delivered a solid performance in Q1.

Beauty Segment:

• The beauty vertical remains the company's primary growth engine.
• GMV growth is projected in the higher mid-twenties.
• Net revenue for this segment is also expected to rise in the mid-twenties, consistent with past quarters.
• The House of Nykaa brands, comprising both home-grown and acquired labels, made a significant contribution to this strong performance.

Fashion Segment:

• The fashion business showed notable recovery, with GMV estimated to grow in the mid-twenties.
• This marks an improvement over previous quarters, driven by:
  • Increased customer traction on the core platform
  • A broader product assortment
  • Enhanced customer acquisition strategies
• However, net revenue for fashion is expected to improve only sequentially to mid-teens, slightly trailing behind GMV growth.

Financial Highlights

Here's a quick snapshot of Nykaa's estimated performance for Q1 FY25:

Revenue

• Consolidated net revenue growth expected in the lower range of mid-twenties

GMV Growth

• Total GMV: Above mid-twenties
• Beauty GMV: Higher mid-twenties
• Fashion GMV: Mid-twenties

Beauty Vertical Revenue

• Net revenue growth: Mid-twenties

Fashion Vertical Revenue

• Net revenue growth: Mid-teens

Summary of the Article

The Nykaa Q1 Update highlights a steady performance in its beauty division and a positive turnaround in the fashion segment. Despite headwinds from geopolitical events that affected customer sentiment, the company sustained its growth momentum with solid contributions across all verticals.

Strong GMV and revenue growth in the beauty segment are helping Nykaa reinforce its position as a key player in India's fashion and beauty e-commerce market. The performance also underscores the strength of its House of Nykaa brands, which remain central to its long-term strategy.