Nykaa’s Q3 FY25: Beauty vertical leads with 30% GMV growth, net revenue surpasses expectations

Nykaa has experienced a marked acceleration in growth compared to previous quarters, with Net Revenue growth likely to be surpassing mid-twenties. The GMV growth for the beauty segment is projected to be in the low thirties, reflecting strong momentum across all of Nykaa’s beauty businesses, including its e-commerce platform, retail stores, owned brands and eB2B distribution channels. However, the update for the quarter ended December 31, 2024 is provisional, and subject to audit by the Statutory Auditors of the Company.

Notably, the company’s eB2B distribution business, Superstore by Nykaa, continues to expand rapidly, now serving approximately 2,60,000 transacting retailers across more than 1,100 cities. The business, which contributes 8 percent to the beauty vertical’s GMV (up from 7 percent a year ago), is experiencing significant traction as it meets the growing demand for beauty products across India.

In terms of customer acquisition, Nykaa has seen continued acceleration, reflecting its ability to attract and retain new customers, particularly in the highly competitive beauty sector. The company's continued focus on expanding its customer base is central to its strategy for growth.

Meanwhile, the fashion vertical of Nykaa is expected to report Net Revenue growth of around 20 percent, with Net Sales Value (NSV) growth projected to be in the low to mid-teens. This highlights the ongoing strength in content, marketing, and service-related income, despite online fashion demand remaining subdued in the short term. However, Nykaa remains optimistic about the long-term growth prospects of its fashion business, as it continues to build on its established brand presence and diversify its offerings.