Analyst Concall
FSN E-Comm sees strong Q3 on Big Friday, post-festival sale
This story was originally published at 19:58 IST on 7 November 2025
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--FSN E-Comm: To offer H&M pdts online, priced on par with their D2C
--FSN E-Comm: See Q3 better for fashion business, growth momentum continuing
--FSN E-Comm: Early Diwali helped Q2 fashion business
--FSN E-Comm: Growing from beauty products to personal care products
--FSN E-Comm: Incurred capex of INR 580 mln in Apr-Sept
--FSN E-Comm: Saw small dip in retailer orders due to GST cuts
--FSN E-Comm: Seeing good traction for Kay Beauty in UK
--FSN E-Comm: Partnered with Snapchat to reach youth market
--FSN E-Comm: Korean products contributed 60% gross merchandise value
--FSN E-Comm: Korean products spearheading skincare adoption growth
--CONTEXT: Comments by FSN E-Comm mgmt in post earnings analyst concall
--FSN E-Comm: Q2 gross merchandise value highest in last 6 qtrs
By Afra Abubacker and Arya S. Biju
NEW DELHI/MUMBAI – FSN E-Commmerce Ventures Ltd., which operates under the brand name Nykka, expects a strong performance in its fashion business in the upcoming quarter as growth momentum continues from the September quarter, which had benefited from an early Diwali this year.
"On fashion, we did see some benefit of (early) Diwali. Diwali is more of a fashion purchase, so we did see the benefit. But we think the momentum will continue this quarter, hopefully," the company management said. For the beauty business, the company also expects a good quarter on the back of Big Friday sales.
The company reported a gross merchandise value of INR 47.44 billion in the September quarter, up 30% on year, marking the highest on-year growth in the last six quarters. The gross merchandise value in the beauty segment grew 28% on year, and that in the fashion businesses grew 37%. "The beauty growth has been robust and the fashion has also seen a revival," the management said.
Though the September quarter is seasonally weak, the company managed to boost its sales by continuing market penetration and premiumisation. "On the penetration front, we continue to make investments that are paying off. We believe that India has some of the lowest penetration of beauty consumption in the world, and investment needs to be made to continue to drive that," the company said.
The company has been investing in customer acquisitions through marketing and selling, and distribution expenses, which led to a 27% rise in unique transacting customers, taking it to 17.5 million for the quarter, it said.
The company will soon launch the Sweden-based H&M on its platform. The partnership will be for only online sales and pricing will be on a par with H&M's direct-to-consumer platforms. "In a few days from now, H&M debuts on Nykka Fashion. H&M has been one of the most successful international brands to enter the country in the last few years. H&M also just completed a decade in India," the company said.
The company incurred INR 580 million as capital expenditure in the first half of 2025-26 (Apr-Mar), mainly for store expansion and technology. The company added 19 stores in the September quarter, taking the total to 265.
The company said its Korean beauty range continued to drive growth, contributing about 60% to gross merchandise value, and is leading skincare adoption. "Korean brands are going to spearhead the adoption of skincare and makeup in the coming years in India because of the affordable pricing, highly efficacious products, and good quality R&D, as well as very fun, playful packaging," the company said.
It's Kay Beauty brand also saw a strong overseas traction after its launch across 13 stores in the UK. "In many of those stores, it's a top-five brand. In general, we're seeing an amazing response from the UK audience and it is making us think harder and deeper about the international expansion for this brand," it said.
The company is expanding its product basket from beauty to personal care categories. "People are now looking at Nykka not only as a beauty destination but also as a personal care destination," it said. The company is also set to open fragrance-only physical stores in several key metros in the coming months. To engage with the younger mercantile, the company has tied with Snapchat to launch India's first Gez Z beauty creator incubator. On Friday, shares of the online retailer ended at INR 245.87 on the National Stock Exchange, down 0.1%. End
Edited by Akul Nishant Akhoury
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