FSN E-Commerce Ventures, the parent company of Nykaa, saw its shares surge by 5.3% in intraday trade on Monday, January 6 to a 2-week high of ₹176.60 per share. This positive response from investors follows the release of the company’s Q3 FY25 business update on January 5.
Q3 Business Update
The company reported healthy performance in Q3 FY25 and expects consolidated net revenue growth to be higher than the mid-twenties. This is above the consolidated GMV growth for the same period, indicating a positive trend in GMV-to-net revenue translation.
The company informed that its beauty vertical accelerated during the December quarter as compared to previous quarters, with net revenue growth exceeding the mid-twenties. It projects GMV growth for beauty to be in the low thirties, indicating strong momentum across all its beauty businesses—e-commerce platform, retail stores, owned brands, and eB2B distribution.
The eB2B distribution business—Superstore by Nykaa, which accounts for 8% of the beauty vertical’s GMV (up from 7% a year ago)—continues to witness rapid expansion and now services around 260,000 transacting retailers across 1,100+ cities.
Further, the company anticipates its fashion vertical to deliver net revenue growth of around 20%, while it projects NSV growth to be in the low to mid-teens, indicating continued strong growth in content, marketing, and service-related income. The company believes that online fashion demand remains subdued, but it remains optimistic about the long-term growth opportunity.
By FY29, the beauty segment is expected to remain the predominant share of Nykaa, while fashion’s share is projected to increase from 16% to 21%. In the beauty segment, the company aims to maintain a market share of over 30%, growing ahead. In the fashion segment, the company targets achieving EBITDA positivity by FY26E.
Meanwhile, the company, which entered the GCC market last March with the brand “Nysaa,” sees substantial growth opportunities in the region due to its high per capita consumption and rapid market growth. The company plans to leverage its expertise in the Indian market to drive profitability and market share in the GCC.
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