Nykaa Q1 update: Revenue growth likely at 22-23% YoY, GVM growth to be lower

FSN E-Commerce Ventures Ltd, the parent company of beauty and fashion platform Nykaa, projected a strong revenue growth of approximately 22-23 per cent year-over-year for the first quarter of FY2025, the company said on July 7.

The company also expects its Gross Merchandise Value (GMV) to increase in the mid-twenties percentage range year-over-year.

“Our Beauty vertical revenue growth for the quarter is expected to be around 22-23% YoY, similar to the consolidated entity’s revenue growth. GMV growth is expected to be higher, in the high twenties YoY, in line with long-term BPC (Beauty & Personal Care) industry growth-trajectory. This is despite relatively slower growth in our physical retail business which was impacted by elections as well as heatwaves across North India,” the company said.

Starting this quarter, Nykaa will implement vertical-wise segmental reporting. The Beauty segment will include the online beauty platform Nykaa, its owned beauty brands, physical stores, the eB2B distribution business 'Superstore by Nykaa,' and the Nykaa Man beauty and personal care (BPC) business.

The Fashion segment will cover the Nykaa Fashion platform, its owned fashion brands, the content platform LBB, and the Nykaa Man lifestyle business.

Revenue growth for the Beauty vertical is expected to align with the company's overall growth, projected at around 22-23% year-over-year. GMV growth for this segment is anticipated to be in the high twenties year-over-year, reflecting the long-term growth trajectory of the BPC industry.

However, this performance comes despite slower growth in Nykaa's physical retail business, which has been impacted by elections and heatwaves in North India.

“Within this context, our Fashion vertical revenue is expected to deliver a healthy performance, with revenue growth of around twenty percent YoY. GMV growth for the quarter is expected to be lower at mid-teens YoY,” it added.

The shares of FSN E-Commerce Ventures closed 3.23 per cent higher at ₹176.93 on Friday's trading session.