India's Nykaa posts quarterly profit surge on demand for premium beauty products

Fsn E-Commerce Ventures

10/02/2025 12:39

Feb 10 (Reuters) - Indian retailer Nykaa  FSNE.NS 
reported a 61% surge in quarterly profit on Monday, as the
company's marketing investments paid off with more consumers
purchasing higher-priced beauty products on its online platform.
    Listed as FSN E-Commerce Ventures, Nykaa posted a profit of
261.2 million rupees ($2.99 million) for the quarter ended Dec.
31, according to a regulatory filing.
    Nykaa, to cash in on the turbocharged growth in the $28
billion Indian beauty and personal care industry, has been
pouring money into marketing and co-developing a celebrity brand
called Kay Beauty with Bollywood actor Katrina Kaif.
    Nykaa's beauty business, which accounts for more than 90% of
its topline, reported a 27% increase in revenue at 20.6 billion
rupees in the quarter. The segment sells products from a spate
of domestic and international premium brands, such as Estee
Lauder  EL.N  and singer Rihanna's Fenty Beauty.
    Total revenue rose 27% to 22.67 billion rupees,
counterbalancing a 26% marketing cost-led jump in expenses.
Marketing and advertisement expense rose 29% to 2.93 billion
rupees.
    "A lot of the growth has been driven by the big investments,
which we've made over the past several quarters,  ... around
customer acquisition," Anchit Nayar, the CEO of Nykaa's beauty
business, said on an earnings call.
    Gross margin expanded by 119 basis points during the
reported quarter as Nykaa sold more premium products that
typically carry increased margins.
    Nykaa's fashion business, which sells apparel and accounts
for a tenth of its overall revenue, climbed 21% to 1.99 billion
rupees.
        Shares in Nykaa closed 2.3% lower at 169.44 rupees ahead
of the results.
  
    

($1 = 87.4330 Indian rupees)

 (Reporting by Praveen Paramasivam; Editing by Eileen Soreng)
 ((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))