Nykaa reports robust 61% rise in net profit; is Nykaa's share price underperforming?

FSN E-Commerce Ventures, the parent company of online beauty and fashion retailer Nykaa, reported a robust 61.4% year-on-year (YoY) rise in net profit to ₹26.12 crore for the third quarter of FY25, compared to ₹16.18 crore in the same period last year.

Revenue from operations surged 26.7% YoY to ₹2,267.21 crore, driven by strong consumer demand and expansion in the beauty, personal care, and fashion segments. The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 41.3% YoY to ₹140 crore, with the EBITDA margin expanding by 63 basis points to 6.2%.

Nykaa attributed its revenue growth to higher order volumes, increased customer engagement, and an improved product mix. The fashion and beauty verticals continued to deliver steady growth, while the company's offline expansion strategy also contributed to sales momentum.

Basic and diluted earnings per share (EPS) stood at ₹0.09, up from ₹0.06 in the corresponding quarter of the previous year.

The company continues to focus on omnichannel expansion, investing in technological upgrades, and scaling its owned brands portfolio to drive future growth. CEO Falguni Nayar noted that Nykaa remains committed to strengthening its position as a leading lifestyle and beauty retailer in India.

Shares of Nykaa ended Monday’s trade down 1.69% at ₹170.52 on the NSE. The stock is currently 25.7% below its 52-week high of ₹229.80, recorded in August 2024. The company’s market capitalisation stood at ₹48,739.04 crore as of February 10.

As per data from BSE, Nykaa has been trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, which could signal a persistent downtrend.

In the last trading session, the stock fell 2.87%, significantly underperforming the Sensex, which dipped 0.82%. On a monthly basis, Nykaa’s stock has edged down 0.38% compared to the broader Sensex, which had witnessed a modest 0.20% decline.