Nykaa share price falls 4% despite 193% rise in Q4 profit

Nykaa delivered a glowing Q4 result. But the market? Not impressed.

Despite a 193 per cent jump in net profit and a solid 24 per cent revenue growth, the stock slipped nearly 4 per cent intraday on Monday (June 2, 2025).

For a company that once dazzled the Street, investors are asking: Where’s the next spark coming from?

Q4 FY25 results snapshot

Nykaa’s beauty and personal care segment, which makes up the bulk of its revenue, grew 24.7 per cent YoY. The eB2B platform ‘Superstore by Nykaa’ also saw strong traction with a 57 per cent GMV jump.

So, why did the stock fall?

• Sequential dip in profit: While YoY numbers are solid, profit was down 29 per cent compared to the previous quarter.
• Fashion drag: Fashion growth remains tepid, increasing only 11 per cent despite investments in that vertical.
• Market mood: Broader markets were weak on Monday, dragging many stocks down.

In short, investors expected more than just headline growth; they wanted margin momentum and fashion firepower, too.

About the company

Launched in 2012, Nykaa, run by FSN E-Commerce Ventures, is India’s go-to name for online beauty, personal care, and fashion shopping. It operates through a mix of online platforms and over 230 physical stores, selling both domestic and international brands, as well as its own in-house labels like Kay Beauty and Dot & Key.

Below is a table showcasing its fundamentals.

Value Research Online ratings

• Overall Rating: 3 stars
• Quality: 3/10
• Growth: 8/10
• Valuation: 2/10
• Momentum: 9/10

The takeaway

Nykaa still has a strong brand, expanding distribution, and leadership in beauty. But its valuation depends on sustained growth across all verticals, and that includes fashion.

The recent dip doesn’t mean the story is over, but investors will want to see consistent margin improvement and broader-based growth. Until then, the stock may remain range-bound.

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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.