Nykaa stated that long term macro indicators continue to improve with strong GDP growth, stable interest rates, and growing GST collections, reflecting India’s strong consumption growth story. However, there has been some impact on discretionary consumption due to short-term pressures.

The company’s beauty and personal care (BPC) vertical gross merchandise value (GMV) growth for the quarter is expected to be in the mid-twenties, and net sales value (NSV) growth around 20% on YoY basis.

The difference in GMV and NSV growth is primarily due to brand led pricing and discounting, mainly in mass and masstige categories. The underlying order volume growth is healthy and consistent, reflecting strong customer demand, added the firm.

“India has amongst the lowest per capita beauty consumption in the world. We continue to invest in expanding the category and generating demand through innovative initiatives like “Nykaaland”, India’s first beauty & lifestyle festival which was hosted in Mumbai this year and had over 15,000+ ticketed visitors,” the company stated in the press release.

Nykaa believe that its BPC growth for the quarter is ahead of industry growth. However, the firm believe that current industry growth is below long-term trajectory and should revert to the median in the near to mid-term, given the strong macroeconomic and demographic outlook.

The online beauty and fashion retailer said that its reach in the BPC industry is furthered through early success seen in its newer businesses, including Superstore By Nykaa. This vertical has witnessed high growth and is now a meaningful share of its overall NSV. The combined NSV of all BPC businesses is expected to grow at low to mid-twenties on a YoY basis, it added.

In Fashion, the industry level consumption remained muted and has not seen the uplift expected during the festive season.

Against this backdrop, Nykaa Fashion has witnessed strong growth in Q3 FY24, continuing the momentum from the previous quarter. This is a testament to the quality of the assortment, superior customer metrics along with platform strength, stated the company.

Fashion vertical GMV for the quarter is expected to grow at around 40%, with NSV growth expected in the low thirties on YoY basis.

On a consolidated basis, Nykaa expects NSV to grow in the mid-twenties and revenue to grow in the low twenties on YoY basis in Q3 FY24.

Nykaa (FSN E-Commerce) is one of India's leading lifestyle-focused consumer technologies platforms. Since its launch, Nykaa expanded its product categories by introducing online platforms Nykaa Fashion, Nykaa Man, and Superstore. Delivering a comprehensive omnichannel e-commerce experience, Nykaa offers over 6,000 brands through its website and mobile applications.

The company’s consolidated net profit jumped 50.29% to Rs 7.80 crore in Q2 FY24 as compared with Rs 5.19 crore in Q2 FY23. Revenue from operations increased 22.44% YoY to Rs 1507.02 crore in Q2 FY24.