Nykaa just released its Q4 results; it’s a combo of gains and glitches. FSN E-Commerce Ventures Ltd, the parent company of beauty and fashion brand Nykaa, reported a remarkable 193% surge in net profit, reaching ₹20 crore, up from ₹7 crore in the same quarter last year. Impressive but weirdly, the stock still closed 2% lower on the NSE at ₹201. So what’s going on?
Revenue Touches ₹2,062 Crore, That’s a 24% Jump!
Revenue-wise, Nykaa’s doing more than fine. Nykaa recorded a revenue of ₹2,062 crore in the March quarter, marking an increase from ₹1,668 crore in the same period last year. That’s a 24% year-on-year growth, signaling strong demand. A lot of that credit goes to the beauty vertical, which brought in a whopping ₹1,895 crore. Meanwhile, the fashion side of the business earned ₹161 crore, slightly up from ₹145 crore.
EBITDA, Margins, and All That Jazz
EBITDA stood at ₹133 crore, up 43% YoY. Margins got better too, climbing to 6.5% from 5.6% a year ago. Nykaa is undoubtedly improving its operational performance. They’re not just making more; they’re keeping more.
Then Why Did The Stock Fall?
Here’s the twist: despite strong numbers, investors weren’t exactly thrilled. The share price fell 2% on May 30. Maybe it’s profit booking or maybe the Street expected even better guidance. After all, Nykaa’s stock has been floating between ₹150 and ₹230 in the past year.
Superstore Expansion & Big Brand Tie-Ups
On the expansion front, Nykaa’s been busy. Its Superstore business is growing fast, becoming a core part of its beauty segment. In the past year alone, they’ve launched several international beauty giants—think Yves Saint Laurent, NARS, Kérastase, Eucerin, GHD, Armani Beauty, Supergoop, and Nexxus. It’s basically a global beauty aisle on your phone now.
The Human Take
Let’s be honest, Nykaa’s numbers are solid, but the market has a funny way of reacting. One day it’s cheering, next day it’s sulking. Still, Nykaa seems laser-focused on the long game: better margins, global brands and physical store rollouts.
If you’re an investor or just beauty-obsessed, this quarter’s update is worth your attention.
