Nykaa Q3 Results 2025 Highlights: Net profit surges 61% YoY to ₹26 crore; stock ends lower

Nykaaland 2024: The second edition of India’s Beauty & Lifestyle Festival saw impressive footfall of over 25,000 attendees, reflecting a 1.7x growth from the previous year. The event featured masterclasses from renowned experts like Sofia Tilbury and Patrick Ta, attracting over 80 top beauty brands such as Charlotte Tilbury, Maybelline, and CeraVe. Major launches from Clinique, Sol de Janeiro, and GHD further highlighted its prominence in the beauty sector. The debut of Foot Locker in India and PUMA’s latest footwear offerings, alongside fashion collections from Revolve, Nykd by Nykaa, and Cover Story, underscored Nykaaland’s expanding influence in both beauty and fashion.

● Nykaa Fashion witnessed a healthy revenue growth of 21% YoY in a subdued demand environment, with GMV growth of 8% YoY. LBB – Nykaa’s content platform business – saw strong growth this quarter, aided by hugely successful marketing campaigns and events such as Nykaaland and Nykaa wali Shaadi, driving overall higher revenue growth for the Fashion vertical.

● The fashion vertical continues to show improvement in profitability with cost efficiencies across several cost items. Gross margins saw strong improvement in Q3 FY2025, reaching 51.3% vs 43.9%, benefiting from increased content income from LBB, along with improvement in other services-related income. Fulfillment expenses also saw significant improvement through several interventions. As a result, EBITDA margins as a percentage of NSV improved to -5.4% vs -7.3% a year ago.

Nykaa’s distribution business, Superstore by Nykaa, continues to see strong GMV growth of 53% YoY. Within just 3 years of operations, this business has scaled 12x and crossed the milestone of ₹10,000 million GMV on an annualized basis this quarter. Superstore by Nykaa is the largest B2B beauty distribution platform of its kind, serving over 256,000 transacting retailers across 1,100+ cities and towns.

The business continues to see significant improvement in profitability, with the contribution margin improving to -12.1% as a percentage of NSV in Q3FY25, compared to -17.2% in Q3FY24. This was achieved through a growing share of featured brands, increasing ad income driving gross margin expansion, along with cost efficiencies in fulfillment, and selling and distribution expenses.

Nykaa Q3 Results LIVE: Nykaa Beauty Vertical continues to bring exciting new global brands to the country, launching 200+ new brands in Q3FY25 – one of the highest brand onboardings in recent times. This list includes marquee international brands like Kerastase, NARS, Tirtir, Axis-Y, and Eucerin, most of which are already among the Top 100 brands on the platform.

Nykaa offline network – India’s largest beauty retail network – continues to expand every quarter. With 221 physical stores spanning 73 cities, Nykaa has added over 47 stores in the last year. The GMV productivity of ₹4,250 per square foot per month makes Nykaa one of the most profitable store networks in the industry. The retail space now spans 2.1 lakh square feet, up 31% YoY, with the rollout of larger stores, including the new flagship stores. These larger-format stores offer premium assortments through shop-in-shop formats, differentiated beauty services, leading to even better AOVs and profitability.

Nykaa Q3 Results LIVE: The Beauty Vertical saw accelerated growth momentum, up 32% YoY, reaching GMV of ₹33,899 million in Q3FY25. This was fueled by customer growth, with Nykaa's cumulative beauty customer base growing to 32 million and the One Nykaa cumulative base reaching 40 million. The solid order volume growth of 30% YoY is the highest growth in the last 9 quarters.

Nykaa Q3 Results LIVE: EBITDA margins expanded to 6.2% vs 5.5% in Q3FY24, according to a release shared by Nykaa.

Nykaa Q3 Results LIVE: EBITDA stood at ₹140.8 crore, recording an increase of 42% YoY. While the GMV rose 25% YoY to ₹4,528 crore.

Nykaa Q3 Results LIVE: The company reported expenses of ₹2,228.18 crore for the December quarter, marking a 26% increase from ₹1,769.89 crore in the same quarter of the previous financial year.

The revenue from operation on a consolidated basis jumped 26.7% YoY to ₹2,267.21 crore as against ₹1,788.80 crore in the year-ago quarter. On a sequential basis, too, the figure was higher than ₹1,874.74 crore posted in the preceding quarter.

Nykaa posted a 61.43% rise in consolidated PAT in Q3 to ₹26.12 crore, compared with ₹16.16 crore in the year-ago period. On a QoQ basis, the PAT nearly doubled compared with ₹10.04 crore posted in the September quarter.

Nykaa Q3 Results LIVE: Nykaa GMV seen growing 25.4% YoY o ₹3,618 crore while revenue could rise 27.4% YoY to ₹1789 crore, according to JM Financial's estimates. We expect PAT to grow ~2.3x YoY to ₹37.1 crore, the brokerage said.

Here's a look at its estimates:

Nykaa Q3 Results LIVE: Nessa International Holdings, a stepdown subsidiary of Nykaa, has incorporated a new Wholly Owned Subsidiary in Oman, by the name Nysaa Cosmetics SPC.

Nykaa Q3 Results LIVE: Management’s commentary on industry trends in BPC/Fashion, the competitive landscape, continued supply chain investments, and international expansion plans should be keenly watched, says JM Financial.

Nykaa Q3 Results LIVE: Nuvama Research sees 27% jump in Q3 revenue to ₹2272 crore while adjusted PAT could grow 32% to ₹24 crore.

"We expect 31%/20% YoY growth in BPC/Fashion GMV. Overall, revenue is likely to increase 27.0% YoY to INR22.7bn. We estimate a slight improvement in EBITDA margin to 5.6% in Q3FY25," it said.

Nykaa Q3 Results LIVE: Nykaa share price was trading 1.45% lower at ₹171 apiece ahead of the Q3 results today. The company is expected to report a multifold increase in Q3 PAT.

Nykaa Q3 Results LIVE: For NYKAA, Kotak Institutional Equities has modelled overall GMV/revenue growth of 27/27% YoY, primarily driven by BPC GMV/revenue growth of 32/28% yoy and fashion business GMV/revenue growth of 1/21% yoy. These growth assumptions are broadly aligned with Nykaa's 3QFY25 business update. Fashion business GMV growth is impacted on account of weakness in premium-wear demand. BPC, however, should post strong performance, driven by customer acquisition and festive period tailwinds.

"We expect EBITDA margin of 6.9%, implying expansion of 140 bps yoy and 140 bps qoq. We believe operating leverage in BPC and lower losses in Fashion should drive margin expansion," the brokerage said.

Meanwhile, it sees Q3 PAT at ₹429 crore, a growth of 164% YoY.

In its 3QFY25 revenue update, it reported low-thirties YoY growth in the BPC segment, while highlighting that eB2B now accounts for 8% of BPC GMV. 

“Our triangulation for core BPC YoY growth suggests that it would roughly fall in the 27-29% range. Such feisty growth, despite the narrative of quick commerce (QC) likely hindering Nykaa, goes a long way in confirming that QC solves for a different use case and revalidates our thesis that BPC rise in QC is unlikely to come at the cost of Nykaa,” JM Financial said.

Our channel checks suggest that Nykaa Fashion, despite reporting muted growth, is still gaining market share, the brokerage added.

Nykaa Q3 Results LIVE: FSN E-Commerce Ventures, the parent company of beauty and fashion retailer Nykaa, is set to deliver its Q3 results today.