THE WHAT? Indian beauty retailer Nykaa has reported its highest-ever quarterly profit since listing in 2021, driven by strong beauty demand, premium product growth and improving profitability across the business.
THE DETAILS Nykaa, officially known as FSN E-Commerce Ventures, reported fourth-quarter profit of 783.8 million rupees (US$8.2 million), nearly quadrupling year-on-year and marking its strongest profit growth since its IPO. Revenue rose 28.4% to 26.48 billion rupees during the quarter, while EBITDA margin expanded to a record 8.4%, up from 6.5% a year earlier. The company’s beauty division remained its primary growth driver, recording 27% sales growth supported by increased traffic, customer acquisition and repeat purchases. Nykaa also reported improving performance in its fashion segment, with EBITDA margins reaching breakeven after losses the previous year. The retailer’s “House of Nykaa” portfolio of owned brands grew 49% in sales value across the fiscal year, led by strong momentum from labels including Dot & Key and Kay Beauty. Full-year gross merchandise value rose 28% to 199.63 billion rupees.
THE WHY? The results reflect growing consumer demand for premium beauty products in India and highlight how private-label expansion and improved operational efficiency are helping beauty retailers strengthen margins and profitability
Source: Reuters
