FSN E-Commerce Ventures, which operates beauty retailer Nykaa, reported a 66 per cent rise in net profit in Q2 to ₹13 crore, and revenue rose 24 per cent to ₹1874.7 crore.

During the quarter, its gross merchandise value was 24 per cent higher at ₹3,652.5 crore. At ₹103.7 crore, the EBITDA increased 29 per cent on year.

The beauty vertical recorded a 29 per cent growth in GMV, reaching ₹2,783.3 crore in Q2 fuelled by new customer acquisition growth of 31 per cent, bringing Nykaa’s cumulative beauty customer base to 30 million and One Nykaa cumulative base to 37 million.

It contributed to a 22 per cent rise in annual unique transacting customers and a 24 per cent increase in total orders.

During the quarter, the retailer launched two new flagship stores in Mumbai and Delhi, ending the quarter with a 25 per cent growth in retail space and 210 physical stores across 72 cities. Its productivity was at a commanding GMV of ₹3,500 per square feet per month.

It also ramped up its beauty portfolio launching over 170 brands in the quarter such as YSL Beauty, a colour cosmetics brand from LÓreal, and Dr. Jart, a Korean skincare brand from Estee Lauder.

Its same-day and next-day deliveries are now available in over 110 cities, and the company is strengthening that quick delivery proposition.

Nykaa’s beauty-owned brands reported 48 per cent GMV growth in Q2, reaching Rs 360 crore. The company recently expanded its ownership stake in Dot & Key and Earth Rhythm and also expanded its product portfolio in Kay Beauty, Nykaa Cosmetics, Wanderlust and more, driving significant growth in the quarter.

The distribution business Superstore by Nykaa saw strong GMV growth of 80 per cent as it continued to expand its operations across the country.

The platform now serves over 235,000 transacting retailers across over 1000 cities and towns. The contribution margin improved by 862 bps, to -11.5 per cent in Q2FY25 from -20.1 per cent year ago.

This was achieved with growing share of featured brands and increasing ad income driving 334 bps of gross margin expansion along with cost efficiencies in fulfilment and selling and distribution.

Nykaa Fashion witnessed a healthy revenue growth of 22 per cent YoY. GMV grew 10 per cent YoY, with ‘First in Fashion’, representing new season sales, growing 26% YoY showcasing strong demand in targeted segments. The acquisition of LBB, Nykaa’s content platform business continues to perform well, driving overall higher revenue growth for the Fashion vertical.

The fashion vertical saw an improvement in gross margins by 567 bps, reaching 49.7 per cent, benefiting from increased content income from LBB along with improvement in other services related income. Fulfilment expenses also saw significant improvement through interventions.