Nykaa's Q1 Profit Triples Amid Fashion Segment Growth
Beauty e-commerce giant Nykaa reported a threefold increase in net profit for the first quarter, with its fashion business achieving EBITDA positive status for the first time.
Indian e-commerce company Nykaa announced a significant profit surge in its first quarter, reporting a threefold year-on-year jump in net profit to ₹79.8 crore (approximately $9.6 million). The company's operating revenue also saw a 29% increase, reaching ₹2,782 crore.
The beauty segment, which constitutes 90% of Nykaa's total revenue, remained the primary growth driver. Factors such as improved customer engagement, expanding margins, and a focus on premium products contributed to its success. The company also extended its omnichannel presence within the beauty sector, now encompassing 324 stores.
Notably, Nykaa's fashion division achieved its first-ever positive EBITDA. This turnaround was attributed to stronger operating leverage, enhanced merchandising strategies, and the expansion into new categories like activewear and kidswear. The company's quick commerce platform also saw scaling efforts, expanding to 13 cities.
Nykaa continues to pursue its 'house of brands' strategy through acquisitions. The company plans to acquire a 51% stake in the D2C skincare brand Aminu, aiming to bolster its premium skincare portfolio and leverage the brand's salon distribution network. This move aligns with Nykaa's broader objective of integrating scale with profitability across its diverse business units.