Nykaa's Q3 profit jumps 97% Y-o-Y as beauty and fashion thrive

India's leading omnichannel beauty and fashion retailer, Nykaa delivered strong financial results for the third quarter of FY24, driven by robust growth in its core beauty and personal care (BPC) segment and a surge in its fashion business.

The retailer’s net profit jumped by 97 per cent Y-o-Y to Rs 16.2 crore, while revenue grew 22 per cent Y-o-Y to Rs 1,789 crore during the quarter. Nykaa’s EBITDA also surged by a 26 per cent Y-o-Y to Rs 98.8 crore, with margins expanding to 5.5 per cent.

The BPC segment continued to be the main driver of growth, with GMV rising 25 per cent Y-o-Y and NSV increasing by 20 per cent Y-o-Y. This growth was attributed to higher discounting by brands in the mass and masstige segments.

The fashion segment of the retailer witnessed impressive growth, with GMV surging 40 per cent Y-o-Y. This was driven by an increase in all metrics, including a 23 per cent Y-o-Y rise in annual unique transacting customers (AUTC) and a 19 per cent YoY increase in order growth. The average order value also jumped by 18 per cent Y-o-Y.

Nykaa's new businesses, including Superstore by Nykaa, Nykaa Man, international operations, LBB, and Nudge, clocked an NSV of Rs 131 crore in the quarter. The distribution business, Superstore by Nykaa, saw its NSV grow by 88 per cent Y-o-Y, scaling up over 31x on GMV in just two years.