Nykaa shares drop despite strong Q4 performance
Nykaa parent FSN E-commerce saw shares decline in early trade as Indian market opened with losses on Monday. The counter opened 2% lower at Rs 199 against the previous closing of Rs 203.26 on the BSE. It was trading at Rs 201.26 as of 9:53 am.
The beauty and fashion retailer posted strong March quarter numbers last Friday, with nearly doubling to Rs 19 crore. The Mumbai-based company's operating revenue rose 23.6% year-on-year to Rs 2,016.7 crore for the fourth quarter, up from Rs 1,667.9 crore, driven by customer acquisition, brand partnerships, and network expansion.
The performance was in line with the company's guidance issued in April, when it projected consolidated net revenue growth in the low to mid-20% range for the March quarter.However, on a sequential basis, Nykaa's Q4 profit declined 29.3% from Rs 26.9 crore reported in the previous quarter.
Nykaa's beauty vertical, which contributes over 90% of the company's total revenue, posted a 24.7% YoY increase to Rs 1,895 crore from Rs 1,519 crore. The fashion segment saw muted growth, rising 11% to Rs 161 crore from Rs 145 crore, with gross merchandise value (GMV) growing 18% year-on-year.
For the full fiscal year, Nykaa reported a consolidated gross merchandise value (GMV) – total value of goods sold across its platforms – of Rs 15,604 crore, a 25% increase from the previous year.
Nykaa currently serves 42 million customers and operates 237 offline stores across India, offering products from over 8,600 brands. In FY25 alone, the company added around 50 stores — its highest annual addition to date."While BPC segment continues to deliver healthy growth with better profitability, revival in fashion business remains a key monitorable, given the heightened competitive intensity across the industry," said brokerages house Nuvama in a note on Monday.
Nuvama analysts continue to expect improvement in profitability on the back of lower losses in fashion and eB2B segment.
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