Nykaa profits spike over 50% in Q1 FY25; invests Rs 265 Cr in Dot & Key

Online beauty and fashion platform Nykaa has managed to improve its topline in the last quarter over Q4 FY24. Its revenue from operations grew  4.7% in the first quarter of the ongoing fiscal year whereas the firm’s profit spiked 51% during the same period.

Nykaa’s revenue from operations increased to Rs 1,746 crore in Q1 FY25 from Rs 1,668 crore in Q4FY24, its unaudited consolidated financial statements sourced from National Stock Exchange show.

The beauty segment comprised 91% of the total income while fashion accounted for 8.4% to the company’s coffers. At the same time, its gross merchandise value (GMV) stood at Rs 3,321 crore in Q1 FY25.

In the last quarter, Nykaa processed 12.4 million orders in the beauty segment and 1.7 million from the fashion vertical. The average order value stood at Rs 1,924 for beauty and Rs 4,237 for fashion.

For Nykaa, the cost of materials formed 57.2% of the overall expenditure which increased to Rs 990 crore in Q1 FY25. The firm’s spending on employee benefits, finance, marketing, technology, and other overheads pushed its total cost to Rs 1,731 crore in Q1 FY25.

The marginal growth in its scale enabled Nykaa to book an over 50% jump in its profit to Rs 13.6 crore in Q1 FY25 from Rs 9 crore in Q4 FY24. 

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

The Mumbai-based company is currently trading at Rs 188 (as of Aug 13), with a total market capitalization of Rs 53,697 crore ($6.7 billion).