Revenue from operations grew 8% on sequential basis. Marketing support revenue grew by 68% YoY.

Gross profit margin was at 42.7%, improving by 213 bps sequentially primarily led by increase in share of GMV from owned brands and increase in share of Fashion GMV.

EBITDA fell 48% year-on-year to Rs 28.8 crore. EBITDA margin stood at 3.3% in Q2 September 2021, lower than 9.1% in Q2 September 2020.

Nykaa's operating expenses grew 92% YoY to Rs 349.4 crore. During the quarter, the company's fulfilment expense stood at Rs 91 crore (up 57%), marketing & advertisement expense stood at Rs 121.4 crore (up 286%) and employee benefits expense was reported at Rs 92.3 crore (up 33%).

Marketing and advertisement expense as % to revenue from operations was at 13.7% as compared to 11.1% in Q1 FY22.

Gross merchandise value (GMV) in Q2 FY22 grew by 63% Year on Year (YoY) and 10% sequentially (QoQ) to reach at Rs 1622.9 crore.

Beauty and personal care GMV grew by 38% YoY to reach at Rs 1185.9 crore and Fashion GMV grew by 215% YoY to reach at Rs 437 crore. Fashion GMV contribution to consolidated GMV increased to 27% compared to 14% in Q2 FY21.

Monthly average unique visitors increased to 21 million with YoY growth of 62% in beauty and personal care vertical and to 16 million with YoY growth of 328% in fashion vertical. Annual unique transacting customers reached 7.2 million with YoY growth of 40% in Beauty and personal care vertical and 1.3 million with YoY growth of 417% in fashion vertical.

Nykaa has launched "SuperStore" in Q2 FY22. SuperStore is an eB2B platform bringing beauty and personal care access and expertise to underserved channels and markets using technology.

Nykaa has accelerated store expansion this quarter, with 8 new physical retail stores across the country including stores in Gwalior, Kochi, Mysore & Ranchi. Its total operational physical store was 84 as of 30 September 2021.

Nykaa expanded warehouse storage space by 0.37 lakh square feet during Q2 FY22 which resulted in total warehouse space of 6.65 lakh square feet as of 30 September 2021.

Falguni Nayar, executive chairperson, MD and CEO, said: "We have maintained growth momentum in our beauty business, accelerated our fashion business and focused on building the brand Nykaa with strong marketing campaigns both digitally and mass media. Increased marketing spends has led to acceleration of customer acquisition, also evident in the unique visitor and transacting customer metrics. The Company continues to invest in expansion of retail stores and fulfilment capacity ahead of the festive season. In terms of new initiatives, we are pleased to announce the acquisition of the skincare brand, Dot & Key which marks a significant step towards our owned brands strategy. Suyash and Anisha have cultivated a brand which sees great customer love, and we're very excited to have them on board the Nykaa family. We have also launched the Nykaa eB2B app - Nykaa Superstore. The business will be an area of focus for the quarters to come. On the fashion side, we have launched a brand, Gajra Gang, in the large and promising Indianwear space."

Nykaa (FSN E-Commerce) is one of India's leading lifestyle focused consumer technologies platforms. It offers 4,078 brands and over 3.1 million product SKUs through its website and mobile applications as of 31 August 2021.

Shares of Nykaa were down 5.65% at Rs 2225.55 on the BSE today.

The stock entered the bourses on 10 November 2021. It was listed at Rs 2001, a premium of 77.87% to the issue price of Rs 1125.

The initial public offer (IPO) of Nykaa was subscribed 81.78 times. The issue opened for bidding on 28 October 2021 and it closed on 1 November 2021. The price band of the IPO was fixed at Rs 1,085-1,125 per share.