Nykaa's Kay Beauty Brand Expands to UK Market, Eyes Global Presence

1 min read     Updated on 28 Aug 2025, 03:04 PM
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Reviewed by
Radhika SahaniScanX News Team
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Overview

FSN E-Commerce Ventures, parent company of Nykaa, is launching its in-house brand Kay Beauty in the UK through a partnership with Space NK. Kay Beauty will be available in 13 Space NK stores and online platforms. Nykaa plans future expansions in the US, Middle East, and Asian markets. The company aims to increase its in-house brands' GMV from 21 billion rupees to 60 billion rupees by March 2030. FSN's stock has gained almost 40% year-to-date, outperforming India's Nifty 50 Index. The company targets profitability margins in the mid-teens to early-twenties range, focusing on new product launches for growth.

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*this image is generated using AI for illustrative purposes only.

Nykaa , the popular Indian beauty and fashion e-commerce platform, is making significant strides in its international expansion strategy. The company's parent, FSN E-Commerce Ventures, has announced the launch of its in-house brand, Kay Beauty, in the United Kingdom through a strategic partnership with Space NK.

UK Launch and International Expansion

Kay Beauty, co-created with Bollywood actor Katrina Kaif in 2019, is set to debut in 13 Space NK stores across the UK and on their online platforms. This marks a crucial step in Nykaa's global expansion plans, which include future launches in the United States, Middle East, and Asian markets.

Middle East Presence

The company has already established a foothold in the Middle East through partnerships in the United Arab Emirates, Qatar, and Oman. This existing presence provides a strong foundation for further expansion in the region.

Ambitious Growth Targets

FSN E-Commerce Ventures has set ambitious targets for its in-house brands:

  • Current gross merchandise value (GMV): 21.00 billion rupees
  • Target GMV by March 2030: 60.00 billion rupees

This represents a nearly threefold increase in GMV over the next seven years, highlighting the company's aggressive growth strategy.

Stock Performance and Financial Outlook

FSN's stock has shown remarkable performance in the current year:

Metric Performance
Year-to-date gain Almost 40%
Comparison Significantly outperforming India's benchmark Nifty 50 Index, which has gained nearly 4%

The company has outlined its financial goals:

  • Target profitability margins: Mid-teens to early-twenties range
  • Growth driver: New product launches, especially during India's upcoming festival season

Kay Beauty: A Key Player in Nykaa's Portfolio

Kay Beauty, launched in collaboration with Katrina Kaif, has quickly become a significant brand in Nykaa's portfolio. Its expansion into the UK market through the partnership with Space NK demonstrates the brand's potential for international success.

The move to enter the highly competitive UK beauty market showcases Nykaa's confidence in Kay Beauty's appeal to a global audience. This expansion not only opens up new revenue streams but also enhances the brand's international visibility.

As FSN E-Commerce Ventures continues to expand its global footprint, the success of Kay Beauty in the UK market could serve as a blueprint for future international launches, potentially accelerating the company's growth trajectory in the coming years.

Historical Stock Returns for Nykaa

1 Day5 Days1 Month6 Months1 Year5 Years
-1.58%+2.32%+9.37%+44.93%+9.83%-37.40%

Nykaa Reports Strong Q1 Results: Revenue Up 23%, Profit Surges 79%; Shares Rise 4% on EBITDA Margin Expansion

2 min read     Updated on 13 Aug 2025, 09:09 AM
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Reviewed by
Jubin VergheseScanX News Team
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Overview

Nykaa (FSN E-Commerce Ventures Limited) reported robust Q1 financial results with 23% revenue growth to Rs. 2,155.00 crore and 79% increase in net profit to Rs. 24.00 crore. GMV rose 26% to Rs. 4,182.00 crore, while EBITDA grew 46% to Rs. 141.00 crore. The Beauty segment saw 26% GMV growth, and Fashion segment rebounded with 25% GMV growth. The company plans to acquire the remaining 40% stake in Nudge Wellness Private Limited. Nykaa's shares rose over 4% in early trading following the results announcement.

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*this image is generated using AI for illustrative purposes only.

Nykaa , officially known as FSN E-Commerce Ventures Limited, has reported robust financial results for the first quarter, demonstrating strong growth and improved profitability across its beauty and fashion segments. The company's shares responded positively to the news, rising over 4% in early trading.

Financial Highlights

The company's consolidated Gross Merchandise Value (GMV) reached Rs. 4,182.00 crore, marking a 26% year-over-year increase. Revenue from operations rose by 23% to Rs. 2,155.00 crore, continuing the consistent growth momentum observed over several quarters.

Nykaa's profitability saw significant improvements:

  • EBITDA grew by 46% year-over-year to Rs. 141.00 crore
  • EBITDA margin expanded to 6.5% from 5.5% in the previous year's corresponding quarter
  • Net profit surged by 79% year-over-year to Rs. 24.00 crore

Beauty Segment Performance

The Beauty vertical showed robust growth, with GMV increasing 26% year-over-year to Rs. 3,208.00 crore. This growth was supported by strong performance across e-commerce, retail stores, eB2B distribution, and the House of Nykaa portfolio.

Key highlights of the Beauty segment include:

  • Cumulative beauty customer base expanded to nearly 37 million, reflecting a 29% year-over-year increase
  • Offline retail network reached 250 stores across 82 cities
  • Total retail space grew 36% year-over-year to over 2.5 lakh sq. ft.
  • Store network posted strong GMV growth of 33% year-over-year

Fashion Segment Rebound

Nykaa Fashion posted a robust performance, signaling a strong rebound in growth alongside notable profitability improvements:

  • GMV grew 25% year-over-year to Rs. 964.00 crore
  • EBITDA margin improved significantly, narrowing from -9.2% to -6.2% compared to the same quarter in the previous year

The core fashion platform saw enhanced customer engagement with 165 million visits (30% year-over-year growth) and an 8.5 million-strong customer base (up 32% year-over-year).

House of Nykaa Growth

The House of Nykaa portfolio, which includes the company's owned brands, delivered exceptional performance:

  • Annualized GMV run rate reached approximately Rs. 2,700.00 crore, reflecting a strong 57% year-over-year increase
  • The House of Beauty portfolio scaled to an annualized GMV run rate of over Rs. 2,300.00 crore with an impressive 70% year-over-year growth

Strategic Developments

Nykaa announced its plan to acquire the remaining 40% stake in Nudge Wellness Private Limited for Rs. 14.26 lakhs, making it a wholly-owned subsidiary. This move aligns with Nykaa's strategic intent to build and scale its presence in the wellness sector, particularly in dietary supplements and nutricosmetics categories.

Management Commentary

Falguni Nayar, Executive Chairperson, Founder, and CEO of Nykaa, commented on the results: "This quarter's performance underscores Nykaa's ability to consistently balance growth and profitability across both our beauty and fashion businesses. Our GMV for the quarter grew 26% year-on-year to Rs. 4,182.00 Cr, supported by accelerated premiumization and deeper market penetration."

Nayar also highlighted the company's growing customer base, which now stands at 45 million, reflecting the increasing trust and adoption of Nykaa's platform.

Market Response

Following the announcement of the strong Q1 results, Nykaa's shares rose over 4% in early trading. The nearly 50% expansion in EBITDA margin was particularly well-received by investors. Trading volumes were exceptionally high, with over 11 million shares changing hands in the first 45 minutes, more than 4 times the 10-day average.

The futures market showed a 6.7% increase in open interest, indicating long positions and trader expectations of further price increases. Nykaa topped the list of stocks with the highest open interest increases alongside price rises.

JM Financial analysts rated the stock as 'buy' with a target price of Rs. 260.00, citing expectations of accelerated EBITDA margin improvement and shrinking losses in the fashion unit.

As Nykaa continues to expand its offerings and improve its operational efficiency, the company appears well-positioned for sustained growth in the Indian beauty and fashion e-commerce market.

Historical Stock Returns for Nykaa

1 Day5 Days1 Month6 Months1 Year5 Years
-1.58%+2.32%+9.37%+44.93%+9.83%-37.40%
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