Nykaa's growth prospects adequately captured in its stock price

FSN E-Commerce Ventures' (Nykaa's) revenue for the January-March quarter Q4FY25 at ₹2,060 crore, up 23.6 per cent year-on-year (Y-o-Y), was in line with consensus estimates.

- DEVANGSHU DATTA

FSN E-Commerce Ventures' (Nykaa's) revenue for the January-March quarter Q4FY25 at ₹2,060 crore, up 23.6 per cent year-on-year (Y-o-Y), was in line with consensus estimates. The beauty and personal care (BPC) (₹1,895 crore) and fashion (₹161 crore) segments reported net sales value (NSV) growth of 25 per cent and 13 per cent Y-o-Y, respectively. The earnings before interest, taxes, depreciation, and amortization (Ebitda) margin expanded 80 bps Y-o-Y to 6.5 per cent. Profit after tax (PAT) came in at ₹19.1 crore, lower than consensus with higher tax rates leading to a miss. The operating cash flow was ₹470 crore with the return on capital employed (ROCE) at 11.3 per cent, up from 7.5 per cent in FY24.

The growth recovery pattern was encouraging. Gross merchandise value (GMV) was up 27 per cent Y-o-Y, while BPC maintained focus on customer acquisition, with the annual unique transacting customers (AUTC) up by 27.4 per cent Y-o-Y to 15.8 million. Gross margin expanded 151 bps Y-o-Y to 44.1 per cent, driven by higher share of owned and premium brands and higher ad income in BPC. The e-B2B losses reduced.