Nykaa Q1 Update: Revenue Growth Likely to be 22-23% YoY, GVM Growth Likely to Remain Low

FSN E-Commerce Ventures Limited, the parent company of beauty and fashion platform Nykaa, has forecast significant revenue growth of 22-23% year-on-year for the first quarter of financial year 2025 (FY25), the company said on July 7.

The company also expects its gross merchandise value (GMV) to grow in the mid-20s% year-on-year.

The company said, “Our beauty vertical revenue growth is expected to be 22-23% year-on-year this quarter, similar to the revenue growth of the consolidated entity. GMV growth is expected to be around the high twenties year-on-year, in line with the long-term BPC (beauty and personal care) industry growth-trajectory. This is despite relatively slower growth in our physical retail business, which was impacted by the elections as well as the heat waves in North India.”

From this quarter, Nykaa will use vertical-wise segmental reporting. The beauty division will include the online beauty platform Nykaa, its owned beauty brands, physical stores, EB2B distribution company ‘Superstore by Nykaa’ and Nykaa Man Beauty and Personal Care (BPC) companies.

The fashion section will include the Nykaa Fashion platform, as well as its owned fashion brands, the LBB content platform and the Nykaa Man Lifestyle company.

The beauty vertical’s revenue growth is estimated to be in line with the company’s overall growth, which is estimated to be between 22 and 23 per cent year-on-year. The GMV growth rate for this category is expected to be around the high twenties year-on-year, reflecting the long-term growth trend of the BPC industry.

However, this achievement comes amidst slow growth in Nykaa’s physical retail segment, which is hampered by elections and heat waves in North India.

In this environment, our fashion vertical revenue is estimated to perform well, with a revenue growth rate of around 20% year-on-year. GMV growth for the quarter is expected to be in the mid-teens year-on-year,” the company said.

FSN E-Commerce Ventures shares closed 3.23 per cent higher at ₹176.93 during Friday’s trading session.