Fashion biz and margins Nykaa's weak spots, beauty shines

Dull tone Nykaa's gross merchandise value growth has been relatively slower in recent quarters.

- Manvi Agarwal

In its December quarter (Q3FY25) update, Nykaa's parent FSN E-Commerce Ventures Ltd said its beauty and personal care (BPC) segment remains the key growth driver, while muted demand in its fashion business continues to weigh on momentum.

Nykaa expects Q3 consolidated net revenue growth to exceed the mid-20s year-on-year, up from 24% in Q2. It is driven by sustained BPC momentum across its e-commerce platform, retail stores, owned brands, and eB2B distribution.

Nykaa projects BPC revenue growth to stay above mid-20s, in line with its strategy to outpace the online BPC compound annual growth rate (CAGR) of 19-20%.