Nykaa’s profits soar by more than 50% in Q1 FY25; invests ₹265 crore in Dot & Key.

Nykaa, an online beauty and fashion platform, has shown an improvement in its topline in the last quarter compared to Q4 FY24. The company’s revenue from operations grew by 4.7% in the first quarter of the current fiscal year, while its profit surged by 51% during the same period.

Nykaa’s revenue from operations increased to ₹1,746 crore in Q1 FY25, up from ₹1,668 crore in Q4 FY24, according to its unaudited consolidated financial statements obtained from the National Stock Exchange.

The beauty segment contributed 91% of the total revenue, with fashion accounting for 8.4%. Nykaa’s gross merchandise value (GMV) for Q1 FY25 stood at ₹3,321 crore.

During the last quarter, Nykaa processed 12.4 million orders in the beauty segment and 1.7 million in the fashion segment, with an average order value of ₹1,924 for beauty and ₹4,237 for fashion.

The cost of materials for Nykaa constituted 57.2% of its total expenditure, which rose to ₹990 crore in Q1 FY25. The company’s total spending on employee benefits, finance, marketing, technology, and other overheads brought its total costs to ₹1,731 crore in Q1 FY25.

This slight increase in scale allowed Nykaa to achieve over a 50% rise in profit, reaching ₹13.6 crore in Q1 FY25, compared to ₹9 crore in Q4 FY24.

Nykaa also boosted its stake in its subsidiary Dot & Key to 90% with an additional investment of ₹265.3 crore. Moreover, the Falguni Nayar-led company increased its stake in Earth Rhythm, making it a subsidiary through an undisclosed investment.

As of August 13, the Mumbai-based company is trading at ₹188, with a total market capitalization of ₹53,697 crore ($6.7 billion).