Nykaa's Q3 profit soars by 60% to ₹26cr, misses estimates
What's the story
India's popular e-commerce retailer Nykaa has reported an impressive 60.5% jump in its net profit for the third quarter of the fiscal year. The company's net profit surged to ₹26 crore in Q3 FY25, as opposed to ₹16 crore in the same quarter last year. However, the financial growth was well below the market estimate of ₹36 crore. The company's shares closed 1.7% lower at ₹170.52.
Financial performance
Revenue and EBITDA see substantial growth
Nykaa's revenue witnessed a significant jump, climbing nearly 7% to ₹2,267 crore from ₹1,788.8 crore in the same quarter last year. This translates to a year-on-year growth of 26.74% and was in line with market expectations. The company's Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) also got a major boost of 43%, coming in at ₹141 crore as opposed to ₹98.7 crore in the same period last year.
Operational costs
Nykaa's margin expands amid increased expenses
Despite an increase in operational costs, Nykaa expanded its margin by 70 basis points to 6.2% from 5.5% last year. The company reported expenses of ₹2,228.18 crore for the December quarter, a 26% rise from ₹1,769.89 crore in the same quarter last fiscal. The company expressed confidence in its long-term opportunity despite the subdued demand.