Indian fashion-to-beauty retailer Nykaa (FSNE.NS) reported more than a two-fold increase in quarterly profit on Thursday, driven by strong demand for skincare and makeup products.
For the third quarter ended December 31, FSN E-Commerce Ventures, Nykaa’s parent company, posted a profit of 633.1 million rupees ($7.01 million), up from 261.2 million rupees a year earlier.
Despite broader pressures on Indian consumer spending, demand for beauty products remains robust, with shoppers continuing to splurge on premium international brands such as Shiseido and Estée Lauder, as well as local labels like Kay Beauty.
Nykaa’s largest segment, beauty, saw revenue rise 27% to 26.22 billion rupees. The company added 11 new stores and entered four new cities during the quarter, bringing its total to 276 beauty stores.
Overall revenue climbed 27% to 28.73 billion rupees, while EBITDA margins expanded to 8% from 6.2%, supported by a greater focus on premium offerings.