FSN E-Commerce Ventures Limited
FSN E-commerce Ventures Ltd. (FSNEV) popularly known as “Nykaa” is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. The company has a diverse portfolio of beauty, personal care, and fashion products, including owned brand products manufactured by it. Company operates India’s largest specialty beauty retail network with 265 beauty stores across 90 cities, underscoring its expanding offline footprint and omnichannel strength. Nykaa offers a wide assortment with ~4,200 beauty brands and ~5,000 fashion brands, reinforcing its leadership as a comprehensive lifestyle platform.
Business Segments:
A) Beauty (75.5% GMV): The beauty customer base has scaled to ~34 million, supported by strong brand equity and rising online adoption. The House of Nykaa portfolio of 7 owned brands is a key margin driver, delivering ₹1,700+ crore GMV at a ~48% five-year CAGR across makeup, skincare, fragrance, and clean beauty.
B) Fashion (24.4% GMV): Nykaa Fashion is the company’s fastest-growing non-beauty segment, driven by a curated, discovery-led marketplace spanning 4,400+ brands from luxury to everyday wear.
Shareholding Pattern (March 2025):
Financial Summary
| Particular | Mar-21 | Mar-22 | Mar-23 | Mar-24 | Mar-25 |
| Sales – | 2,441 | 3,774 | 5,144 | 6,386 | 7,950 |
| Sales Growth % | 38.10% | 54.61% | 36.30% | 24.14% | 24.50% |
| Expenses + | 2,283 | 3,610 | 4,887 | 6,039 | 7,475 |
| Operating Profit | 158 | 164 | 257 | 347 | 475 |
| OPM % | 6% | 4% | 5% | 5% | 6% |
| Net Profit + | 62 | 41 | 21 | 40 | 72 |
| EPS in Rs | 6.82 | 0.14 | 0.07 | 0.11 | 0.23 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 0% |
Synopsis of Financials:
- GMV: INR 5,795cr (+28% YoY). Net revenue: INR 2,873cr (+27% YoY).
- EBITDA: INR 230cr; 8.0% margin (record; +63% YoY). CFO:
- PAT: INR 68cr; 2.4% margin, +156% YoY.
- ROCE 19.1% annualized (vs 11.3% in FY25).
Final Outlook:
Summary:
Nykaa is a fast-growing e-commerce company with strong brand positioning in beauty and lifestyle products. The company has delivered consistent revenue growth over the years, supported by its strong online presence and expanding offline stores. However, profitability remains low due to high marketing, logistics, and expansion costs. Recent results show improvement in margins and profits, especially in the beauty segment, while the fashion segment is still improving. Overall, the company is growing well but is still in a profit-building phase.
Recent Performance (Q3 FY26 – Easy View):
- GMV: ₹5,795 Cr (+28% YoY)
- Revenue: ₹2,873 Cr (+27% YoY)
- EBITDA Margin: 8% (improving)
- Net Profit: ₹68 Cr (+156% YoY)
- ROCE improved to 19.1%
Final Verdict: HOLD
Nykaa is a high-growth company with strong brand value, but low profitability and rising costs limit near-term returns.
HOLD for long-term growth potential
