Beauty Segment Boosts Nykaa's Q3 FY25 Growth, Market Cap Hits INR 48,739 Crore

By: WE Staff | Tuesday, 11 February 2025

• Nykaa’s revenue rose 26.8% to Rs 2,267 crore, with profits up 51.7% to Rs 26.4 crore.
• It acquired a majority stake in Earth Rhythm and increased its Dot & Key stake, with a market cap of Rs 48,739 crore.

In Q3 FY25, online beauty and fashion platform Nykaa reported strong growth, with its revenue from operations rising 26.8% year-on-year and profits surging 51.7% during the quarter ending December 2024. Nykaa's revenue from operations grew to Rs 2,267 crore in Q3 FY25, compared to Rs 1,789 crore in Q3 FY24, according to its unaudited consolidated financial statements sourced from the NSE. While the fashion segment contributed 8.8% of the operating income in the last quarter, the beauty segment accounted for 90.9% of the total revenue at Rs 2,060 crore.

In Q3 FY25, the cost of materials constituted 57.2% of Nykaa's total expenditure, rising to Rs 1,276 crore. Additional spending on employee benefits, finance, marketing, technology, and other overheads brought the company’s total costs to Rs 2,228 crore during the quarter. Steady growth in its scale helped Nykaa achieve a 51.7% increase in profit, reaching Rs 26.4 crore in Q3 FY25, compared to Rs 17.4 crore in Q3 FY24.

In 2022, Nykaa acquired a majority stake in Earth Rhythm, following its initial minority investment in the company. This move was achieved through a combination of primary and secondary transactions. Additionally, Nykaa increased its stake in its subsidiary Dot & Key to 90% with an additional investment of Rs 265.3 crore.

Nykaa's shares are priced at Rs 170.5, which values the Mumbai-based company at a market capitalization of Rs 48,739 crore ($5.8 billion).