Nykaa Sees Q4 Net Profit Rise Nearly Four-Fold on Increased Demand for Beauty Products

Nykaa Sees Nearly Four-Fold Jump in Quarterly Profit

Fashion-to-beauty retailer Nykaa reported a nearly four-fold jump in quarterly profit on Thursday, driven by strong demand for skincare and makeup products. The company's focus on its core beauty business and expansion into offline channels are key factors contributing to its success.

Nykaa is sharpening its push for profitability by doubling down on its core beauty business and expanding its offline reach as it seeks to tap India's $28 billion beauty market. The company has been strengthening its premium portfolio through global partnerships, including the global roll-out of actor Katrina Kaif's Kay Beauty and widening access to Rihanna's Fenty Beauty. This has enabled Nykaa to become a full-stack beauty and lifestyle platform.

Nykaa's financial performance for the quarter ended March 31, 2024, was impressive, with the company posting a profit of Rs 78 crore, compared to Rs 20 crore a year ago. Its biggest segment, beauty, saw a 27.2% rise in revenue to Rs 2,410 crore, while sales for its fashion vertical jumped 40% to Rs 225 crore. This drove overall revenue 28.4% higher to Rs 2,648 crore.

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On May 21, Nykaa shares closed 0.6% higher at Rs 275 apiece. The company's success has been driven by its ability to become a multi-engine growth platform, with its Beauty & Fashion businesses doubling their gross merchandise value (GMV) over the past three years, while its newer businesses like Superstore and House of Nykaa have grown 4X during the same period. Today, Nykaa serves over 55 million consumers who are among the most engaged and premium customers in India.