India’s FSN E-Commerce Ventures, which operates beauty and fashion retailer Nykaa, reported a more than three-fold rise in quarterly profit on Tuesday, boosted by strong growth in its beauty business and a sharp acceleration in fashion sales.
The company’s consolidated net profit rose to 800.1 million rupees ($8.39 million) in the quarter ended June 30, from 233.2 million rupees a year earlier.
The results come as investors assess whether Nykaa can sustain its strong pace of growth while improving profitability. After several quarters of investments, analysts now expect the company’s fashion business to contribute more meaningfully .
The company’s revenue from operations rose more than 29% year-on-year to 27.82 billion rupees.
Analysts at Jefferies said continued strength across both beauty and fashion should support profitability, while those at CLSA said improving conversion from gross merchandise value to net sales value and strong customer acquisition had driven sharp acceleration in the fashion business.
Nykaa sells beauty and personal care products from brands including Huda Beauty, Charlotte Tilbury, Estee Lauder, MAC, Clinique, L’Oreal, Maybelline and The Ordinary, alongside its own brands such as Nykaa Cosmetics, Kay Beauty and Dot & Key.
Through Nykaa Fashion, it also retails apparel, footwear and accessories from domestic and international brands, including Nike.
