Earnings Call Transcript for Q4 and FY25
Awaiting price reaction for this filing.
Nykaa reported Q4 FY25 consolidated GMV of INR 4,102 crores (up 27% YoY) and net revenue of INR 2,062 crores (up 24% YoY). Gross margin improved 151 bps to 44.1%, EBITDA grew 43% to INR 133 crores (6.5% margin), and PAT surged 110% to INR 19 crores. For full year FY25, GMV was INR 15,604 crores (up 25%), net revenue was INR 7,950 crores (~USD 1 billion, up 24%), EBITDA grew 37% to INR 474 crores (6% margin), and PAT grew 81% to INR 72 crores. Beauty vertical grew 30% with GMV of INR 11,775 crores, while Fashion showed a revival at 18% growth in Q4. The company added 50 new stores (total 237), grew the customer base to 42 million (up 28%), and launched marquee global brands like Chanel, NARS, Kérastase, and YSL. NCLT approvals were received for the merger of LBB into Fashion and the demerger of the Superstore eB2B business. Operating cash flow stood at INR 467 crores with working capital days reducing from 42 to 34 and ROCE improving to 11.3%.
Strong top-line growth significantly outpacing industry (beauty 30% vs industry 23-25%, fashion 18% vs industry ~10-11%) combined with healthy margin expansion signals improving operating leverage and a strengthening competitive moat. For shareholders, the sharp PAT growth, reduced working capital, healthy cash generation, and high-profile brand wins like Chanel are positive signals, though management did not provide specific steady-state margin guidance during the call.