'Nykaa Now' Live In Multiple Cities, Wider Metro Rollout Soon

Beauty major Nykaa’s quick delivery service, Nykaa Now, is currently operational in several cities, said Anchit Nayar, CEO of Nykaa’s beauty business, in a post-earnings call.

While Nayar didn’t mention the names of the number of cities where the service is available, he said that it would be rolled out to more cities soon.

“It’s no longer in test mode. We’re seeing real usage, and it will expand to other metros,” said Nayar. He added that the company will share more updates during its annual event later this year.

Under Nykaa Now, the beauty and personal care major offers deliveries within 60 minutes.

Notably, Nykaa began hyperlocal deliveries during Covid pandemic by leveraging its physical retail stores to fulfill online orders within the same pincode.

“This capability exists and is primarily used for luxury products,” Nayar said, adding that the company’s physical stores are designed as aspirational stores located in premium real estate, making them less optimal as warehouse spaces.

Beauty Leads, Fashion Faces Headwinds

Earlier in the day, Nykaa reported an increase of 82% in its consolidated net profit to INR 72.1 Cr in FY25 from INR 39.7 Cr in the previous fiscal year. Operating revenue grew 25% YoY to INR 7,949.8 Cr.

The beauty segment continued to be Nykaa’s primary growth driver. Its gross merchandise value (GMV) rose 30% to INR 11,775 Cr in FY25 from INR 9,055 Cr in the previous year.

The company said that it launched more than 270 new beauty brands in Q4 FY25, including major international names like Supergoop, NARS, and Kerastase. Nykaa said that premium brands now make up over two-thirds of its in-store sales.

The company said that while offline presence is important, it will remain complementary to ecommerce. “Most offline stores stock 60-80 brands but online offers far more choice. Ecommerce will remain essential in India,” Abhijit Dabas, business head of Nykaa Fashion said.

Notably, the fashion vertical’s GMV rose 12% to INR 3,804 Cr in FY25 from INR 3,385 Cr in the previous year. Its EBITDA loss for the period stood at INR 93 Cr as against INR 102 Cr in FY24, while EBITDA margin improved to -8.3% from -10.3% in FY24.

Nayar said that the past year saw industry-wide slowdown, but the company remains bullish on the fashion vertical. “We believe the long-term opportunity in online fashion remains intact. We’re seeing good momentum and expect it to continue,” he added.

On the profitability front, he said Nykaa is making structural changes to improve margins for the fashion business. “We’re addressing long-term challenges like leakages and brand selection. The 200 basis point margin improvement this year is structural, not one-off,” Nayar said.

Dabas said that marketing efficiency will improve further in the coming quarters as the company kept investing in new customer acquisition throughout the past year despite the slowdown in business.

House of Nykaa, Superstore March Ahead

Nykaa’s in-house brand portfolio, known as the House of Nykaa, crossed INR 2,100 Cr in GMV in FY25. Skincare brand Dot & Key stood out with a GMV of INR 910 Cr.

Meanwhile, Nykaa Cosmetics generated a GMV of over INR 350 Cr, while the number stood at INR 240 Cr for Kay Beauty. Both the brands launched several new products and expanded their distribution through Nykaa’s online and offline channels.

The eB2B segment, “Superstore by Nykaa”, saw GMV of INR 941 Cr in FY25, up 57% from the previous year. It now serves around 2.76 Lakh retailers across 1,100+ cities, the company said.

Notably, the company claims to have moved from third-party to its own warehouses and increased the focus on high-margin products, which led to better cost control for the eB2B business. According to the company’s investor presentation, the vertical’s contribution margin improved 484 basis points YoY in FY25.

Overall, Nykaa’s consolidated net profit surged 110% to INR 19.1 Cr in Q4 FY25 from INR 9.1 Cr in the year-ago period, while operating revenue zoomed 24% to INR 2,061.8 Cr during the quarter under review from INR 1,667.9 Cr in Q4 FY24.

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