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Informist, Tuesday, Aug. 12, 2025

By Avishek Rakshit and Muskan Lodhi

KOLKATA/MUMBAI - FSN E-Commerce Ventures Ltd., which sells products under the Nykaa brand name, is expecting competitive intensity in the beauty and fashion space of the country to come down in the coming quarters, which will aid the company's growth momentum, the company's Executive Director Anchit Nayar said Tuesday.

"We think certain pressures will ease in terms of competition. Also, certain pressures should ease and as we get more clarity on the way our macro (economic) and trade concerns shape out. I think some of those things (will) shape out to (be) positive," Nayar told sector analysts on a conference call after declaring the company's financial performance for the June quarter. "I think there will only be a positive for our business and for the category."

For the past few quarters, Nykaa has been facing a slowdown in demand from its urban consumers, the company's core consumer base. Additionally, it has also witnessed heightened competitive intensity as quick commerce, e-commerce, and specialised platforms have been increasing their focus on the beauty and personal care category over the past few quarters, leading to increased competition lately.

"I think overall, we feel that there is (an) opportunity for Nykaa to rapidly grow both its platforms and its own brands," Nayar said.

FSN E-Commerce's consolidated net profit for Apr-Jun was INR 233.20 million against INR 96.40 million a year ago. The company reported a 26% on-year growth in its gross merchandise value for the reporting quarter to INR 41.8 billion. Revenue rose 23% year-on-year to INR 21.6 billion. The company's earnings before interest, tax, depreciation, and amortisation grew 46% on year and EBITDA margin expanded to 6.5% from 5.5% in the year-ago quarter.

The company is also focussing on increasing the global sales of its brands. "We've begun with Kay Beauty and I think Dot & Key also may have an opportunity to go global in future," Nayar said.

Dot & Key is a skincare brand that has a gross merchandise value run rate of INR 15 billion with its EBITDA margin in high-teens. Nayar said the brand's margin may increase somewhere in the twenties in the coming quarters.

According to him, FSN E-Commerce is evaluating the impact of the India-UK Free Trade Agreement and will take a call on whether to pass on the benefits of lower taxes to consumers or retain them to improve margin of the company. The company has some suppliers and brands based out of the UK. However, Nayar said that the benefits arising from the trade agreement can only be realised if the goods owned by a UK-based brand are manufactured in the UK as well. Over the past several decades, cost saving measures have led European and American brands to manufacture products outside Western countries, mainly in Asia.

Nayar said that the company was looking at an EBITDA break-even for its fashion portfolio in the current financial year. In the June quarter, FSN E-Commerce's EBITDA margin from the fashion portfolio rose to (-)6.2% against (-)9.2% in the year ago quarter.

Tuesday, shares of FSN E-Commerce closed at INR 204.64 on the National Stock Exchange, up 0.5% from the previous close.  End

Edited by Nishant Maher

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