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Informist, Friday, May 30, 2025

By Shakshi Jain

MUMBAI – FSN E-Commerce Ventures Ltd., the owner of beauty and fashion e-commerce brand Nykaa, is bullish on its new focus on fashion brands in its House of Nykaa portfolio, which involves "de-emphasising third-party offline channels," the management of the company said in a post-earnings analyst conference call Friday.

"We felt that the quality of business was just much better on our own platforms than on others. That's the shift that you're seeing and that's the reason growth has been much stronger on our own platforms versus overall," Nykaa Fashion Chief Executive Officer Adwaita Nayar said.

In 2024-25 (Apr-Mar), 67% of the gross merchandise value for fashion brands in House of Nykaa portfolio came from the e-commerce brand's own platforms compared to 57% in the previous fiscal. The House of Nykaa portfolio presently includes 12 brands owned by the company – seven in the beauty category and five in the fashion category.

After a few quarters of subdued demand, the company is seeing a comeback in growth momentum in its fashion segment. "By our estimates, industry growth is still slower or has not recovered back to the same levels as it was a year ago. It is still in the 10-11% range but we know as a combination of various initiatives we have taken, growth in our case is definitely coming back and we are also seeing green shoots as we head into, as we are in the first few months of, this new financial year," a company official said.

On its earlier stated goal of turning positive on the earnings before interest, taxes, depreciation, and amortisation front for its fashion segment by FY26, the company said it will provide an update to investors in a few weeks.  

In the beauty vertical, the company is pushing several services such as gifting and makeover in its retail stores. "...we believe that education is ultimately the best enabler for consumption," a company executive said.

NYKAA NOW

The brand's quick delivery initiative -– Nykaa Now – has received "relatively good traction" and a sizeable percentage of the orders are now being fulfilled through the quick delivery framework which ensures delivery within 60 minutes, a company official said. "So that is live and it's now well beyond the test stage in a few key metros. There is a plan to expand it to several other metros in the coming months," the executive added.

According to the company, a key differentiator for Nykaa Now has been the large assortment of beauty products available through its rapid delivery network. It leverages the micro fulfilment centre model. The company also has the capability of servicing e-commerce orders in luxury products through its offline stores.

Earlier in the day, FSN E-Commerce Ventures reported a near threefold year-on-year jump in the consolidated bottom line for Jan-Mar to INR 202.80 million. Its consolidated net revenue rose nearly 24% on year to INR 20.62 billion. The fashion vertical, however, saw a slight change in its profitability profile for the quarter due to a slowdown in growth of private labels, the company said. 

On Friday, shares of FSN E-Commerce Ventures ended 0.6% lower at INR 203.26 on the National Stock Exchaneg.  End

Edited by Tanima Banerjee

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