Nykaa Predicts 22-23% Increase in Consolidated Revenue for Q1 FY25

FSN E-Commerce Ventures, the parent company of Nykaa, has projected a consolidated revenue growth of approximately 22-23% year-on-year for the first quarter of FY25. This forecast was shared in a BSE filing on Sunday, detailing the company's quarterly revenue update for April-June FY25. The company anticipates similar growth momentum for its beauty vertical but noted a subdued demand in the fashion industry.

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Beauty Segment Performance

The beauty segment, which includes Nykaa's online platform, owned brands, physical stores, and eB2B distribution business Superstore by Nykaa, is expected to see revenue growth around 22-23% YoY. Despite slower growth in physical retail due to elections and heatwaves in North India, the GMV growth for this segment is projected to be in the high twenties YoY, aligning with the long-term growth trajectory of the Beauty and Personal Care (BPC) industry.

Fashion Segment Challenges

The fashion industry in India continues to face a muted demand environment. This has been exacerbated by a seasonally weak quarter with fewer weddings and festivities. Despite these challenges, FSN E-Commerce Ventures expects its fashion vertical to deliver a healthy performance with revenue growth around 20% YoY. However, GMV growth for this segment is anticipated to be lower, at mid-teens YoY.

FSN E-Commerce Ventures also announced that it will begin vertical-wise segmental reporting starting this quarter. This move aims to provide clearer insights into the performance of its different business segments.

The consolidated entity, including Nykaa and its subsidiaries, expects overall GMV growth for the quarter to be in the mid-20s YoY. This reflects a robust performance despite external challenges affecting specific segments.

The fashion segment comprises the Nykaa Fashion platform and owned brands, as well as LBB (Little Black Book), a content platform, and the Nykaa Man lifestyle business. These components collectively contribute to the overall performance of FSN E-Commerce Ventures' fashion vertical.

In summary, while FSN E-Commerce Ventures anticipates strong growth in its beauty segment, it remains cautious about the fashion industry's demand environment. The company's strategic move to commence vertical-wise reporting will likely offer more detailed insights into each segment's performance moving forward.