Decoding Nykaa’s FY23 and quarterly financial numbers


Online fashion and beauty commerce platform Nykaa expected over 30% growth in revenue during FY23 followed by its growing BPC business in the past few quarters. Looking at the results of the said fiscal, Entrackr found that the company achieved its target and crossed Rs 5,000 crore in revenue.

Nykaa’s gross revenue flourished 36.3% to Rs 5,144 crore during the fiscal year ending March 2023 as compared to Rs 3,774 crore in FY22, according to the company’s consolidated annual financial statements with National Stock Exchange.


Nykaa also earned non-operating income of Rs 30.2 crore from interest and gains on financial assets which steered its overall revenue up by 36% to Rs 5,174 crore during FY23.

Heading towards the expenses, purchase of traded goods accounted as the largest cost element, contributing 55.8% of the total expenditure. This cost spiked 34.5% to Rs 2,866 crore during FY23 from Rs 2,130 crore in FY22.


Spending on employee benefits grew 50.8% during the year to Rs 491.7 crore from Rs 326 crore in FY22 while the company also recorded depreciation-amortization and finance costs of Rs 173 crore and Rs 75 respectively during the last fiscal year.

In line with scale, Nykaa’s total expenses also increased by 36.8% to Rs 5,135 crore during FY23 in comparison to Rs 3,753 crore in FY22.

Despite over 30% growth in topline, profits of the company contracted by 49% to Rs 21 crore in FY23 against Rs 41.3 crore in FY22. Moreover, cash outflows from the operations shrank by 60.5% to Rs 140 crore during the same period.

On a quarterly basis, Nykaa’s scale dwindled 11.1% to Rs 1,301 crore during the Q4 of FY23 from Rs 1,463 crore in Q3 of the same fiscal year. Importantly, its profits also reduced by 72.9% to Rs 2.3 crore in Q4 as compared to Rs 8.5 crore during the Q3 FY23.


In terms of quarterly growth, Q3 proved to be the best quarter for Nykaa where it achieved 18.8% growth in revenue to Rs 1,463 crore along with a profit of Rs 8.5 crore.

As per Fintrackr’s analysis, EBITDA margin and ROCE of the company improved to 5.53% and 6.45% respectively in FY23. On a unit level, Nykaa spent nearly Re 1 to earn a rupee of operating income in the last fiscal.

Nykaa was listed on the BSE in November 2021 and its current market cap is estimated at $4.3 billion.

Falguni Nayar-led firm Nykaa counts local discovery and e-commerce platform Little Black Book (LBB), Kolkata-based homegrown skincare brand Dot & Key, 20Dresses.com and Pipa Bella under its portfolio. Entrackr’s had exclusively reported about the acquisition of LBB in June last year.

To beef up its offerings against competitors such as Purplle and horizontal marketplaces, Nykaa also acquired stakes in companies such as Earth Rhythm, Nudge Wellness, and KICA in the past years.

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