FSN E-Commerce Ventures Limited

FSN E-Commerce reported robust financial results for Q4 FY25, with GMV growing 27% year-on-year to INR4,102 crores and net revenue increasing 24% to INR2,062 crores. EBITDA saw a significant 43% year-on-year growth, reaching INR133 crores with a 6.5% margin. For the full year FY25, GMV grew 25% to INR15,604 crores, and net revenue was INR7,950 crores, reflecting a 24% year-on-year increase. PAT for Q4 was INR19 crores (110% YoY growth) and INR72 crores for the full year (81% YoY growth).

The Beauty segment continued its strong performance, achieving a GMV of INR3,058 crores in Q4, representing 31% growth, and INR11,775 crores for the full year (30% growth). Net revenue for Beauty was INR1,895 crores in Q4 and INR7,251 crores for FY25, both growing 25% YoY. The company expanded its physical retail footprint by adding 50 new stores in FY25, bringing the total to 237 stores across 79 cities, with same-store sales growth at a healthy 15%. Nykaa also launched several iconic global brands like Chanel, NARS, Kérastase, and YSL, reinforcing its position as a partner of choice.

The Fashion segment showed signs of turnaround, with Q4 GMV growing 18% year-on-year to over INR1,000 crores, a revival from previous quarters. Full-year GMV for Fashion reached INR3,804 crores, growing 12% YoY, with net revenue at INR675 crores (19% YoY growth). Management emphasized a strategy of onboarding strong brands like Victoria's Secret and Hopscotch and focusing on its own platforms, which saw 21% growth for its own fashion brands, despite overall muted growth of 4% for these brands. The company aims for breakeven in the fashion business by FY26.

Nykaa's own brands portfolio in Beauty achieved INR1,700 crores GMV in FY25, growing 55% YoY, with Q4 seeing an accelerated 72% growth to INR526 crores. Key brands like Dot & Key grew 14x in 4 years to INR530 crores, and Nykaa Cosmetics reached over INR350 crores GMV. The Superstore eB2B business demonstrated significant scale, tripling its GMV in two years to INR950 crores, a 57% YoY growth, and now contributes 8% to the total Beauty GMV. This segment also saw substantial gross margin improvement of approximately 200 bps and contribution margin improvement of 500 bps.

The company demonstrated improved operational efficiency, with working capital days reducing significantly from 42 to 34 days. This improvement was attributed to greater focus and tighter control across inventory, receivables, and payables. Capex for FY25 was INR128 crores, primarily directed towards technology investments and store expansion. Operating cash flow stood at INR467 crores, indicating a strong cash generation capability that provides surplus cash after lease payments and capex.

Nykaa highlighted the success of its omnichannel strategy, noting significant customer overlap between online and physical stores, with consumers transacting across both. The rapid delivery service, Nykaa Now, is live in multiple metros and shows promising traction, with plans for expansion to several other metros in the coming months^⏳. This service offers a wide assortment of beauty products with a target delivery time of within 60 minutes, differentiating it from competitors.