Gross profit grew 51% YoY to Rs 508.8 crore in Q3 FY22 at a margin of 46.3%, an improvement of 359 bps sequentially primarily led by increase in share of high margin products and higher marketing support revenue.

EBITDA fell 36% to Rs 69 crore in Q3 FY22 at a margin of 6.3% (vs 3.3% in Q2 FY22 and 13.2% in Q3 FY21). Sequential improvement was driven by higher gross profit margin.

During the quarter, the company's operating expense surged 91% to Rs 439.80 crore. Marketing and advertising expense stood at Rs 153.60 crore (up 155% YoY), fulfillment expense was at Rs 116.2 crore (up 72% YoY) and employee benefits expense stood at Rs 115.9 crore (up 56% YoY).

Consolidated GMV (gross merchandise value) grew 26% QoQ and 49% YoY to Rs 2043.5 crore in Q3 FY22.

Beauty and Personal Care (BPC) GMV grew 29% QoQ and 32% YoY to Rs 1533.3 crore in Q3 FY22. Fashion GMV grew 17% QoQ and 137% YoY to Rs 510.2 crore in Q3 FY22. Fashion GMV contribution 25% to consolidated GMV in Q3 FY22.

Annual Unique Transacting Customers in BPC vertical grew 9% QoQ and 44% YoY to 7.9 million, and in Fashion vertical grew 23% QoQ and 278% YoY to 1.6 million in Q3 FY22.

Order volume in BPC vertical grew 25% QoQ and 31% YoY to 7.6 million with sustained AOV, and in Fashion vertical grew 5% QoQ and 90% YoY to 1.4 million with an uptick in AOV in Q3 FY22.

Nykaa has accelerated store expansion this quarter, with 12 new physical retail stores across the country including stores in Tier 2/3 cities such as Jodhpur, Rajkot, Trivandrum. Its total operational physical store count was 96 as of 31 December 2021 in 45 cities.

Nykaa continues to ensure access and timely delivery for customers across the length and breadth of the country. It expanded warehouse storage space by 1.35 lakh square feet during Q3 FY22.

Falguni Nayar, executive chairperson, MD, and CEO, said: "Our previous quarter was defined by a milestone moment in the company's journey with a successful IPO and listing on the stock exchanges. We continue to be on a steady growth trajectory across both Beauty and Fashion businesses, with an overall revenue growth of 65% for the nine-month period year-on-year. Growth in Beauty business accelerated in a relatively normalized Covid environment, with a strong revival in the cosmetics category. Our physical store network also experienced one of its strongest quarters ever and we continued opening new stores in line with our larger omnichannel vision. Marketing continues to be an area of investment for Nykaa, to reacquire as well as recruit new consumers as a means to ensure stronger organic growth.

Fashion, while still an early-stage business in the Nykaa ecosystem, now contributes to 26% of the consolidated GMV year to date. It has witnessed robust growth across revenue metrics, boosted by the acquisition of new customers in the year so far. The overall Fashion portfolio grew with the launch of new international brands as well as the expansion of Nykaa's owned brands, Nykd and RSVP, through strategic collaborations."

Nykaa (FSN E-Commerce) is a lifestyle focused consumer technologies platforms. It offers 4,078 brands and over 3.1 million product stock-keeping unit (SKU) through its website and mobile applications as of 31 August 2021.