Nykaa – the name that once took the Indian beauty and fashion industry by storm – found itself in the spotlight again. But this time, for not all the good reasons.
Despite posting solid revenue numbers in its Q4 FY2025 business update, Nykaa’s share price dropped by over 9% on Monday, April 7. And it left a lot of retail investors scratching their heads.
So, what’s going on? Let’s unpack this.
Q4 FY2025 numbers
According to FSN E‐Commerce Ventures Ltd. (Nykaa’s parent company), the consolidated net revenue for Q4 FY2025 is expected to grow in the low to mid-20% range year-on-year. Not just that, the full-year FY2025 revenue growth is also expected to hit similar levels – a sign of consistency across all quarters.
Now here’s where it gets even more interesting:
| Segment | GMV Growth (YoY) | Revenue Growth (YoY) |
| Beauty vertical | Low 30s (%) | Mid 20s (%) |
| Fashion vertical | High teens (%) | Lower than GMV due to weak brand/content performance |
The Beauty segment continues to outperform the industry, while the Fashion segment, though improving sequentially, dragged down the revenue due to underperformance in owned brands and content-related activity.
Also read: Nykaa Shares Dip 25% from Peak: Time to Invest?
Why did the stock fall?
Let’s not forget: stock prices don’t move on results alone. They move on expectations.
Even though Nykaa’s business update was fundamentally solid, the market had already priced in the growth or expected even better performance. Add to that a broader market selloff triggered by global tensions (including fresh tariffs from the US) – and you get a 9.4% intraday dip on the BSE, with the stock touching a low of ₹160.05.
Also read: Vedanta Shares drop sharply despite strong Q4 production numbers
Retail expansion and House of Nykaa
One of Nykaa’s consistent strategies has been heavy investment in customer acquisition and offline expansion. And it’s working.
In Q4 FY2025 alone, the company added 19 new retail stores, boosting same-store sales growth and contributing to the GMV momentum. The House of Nykaa, which includes a mix of in-house and acquired brands, continues to show strength in the beauty vertical.
So operationally, Nykaa is not struggling – far from it. In fact, analysts like Citi estimate:
- 25% rise in Q4 FY2025 revenue
- 46% YoY EBITDA growth
- Net profit of ₹328 crore – a 3x jump
- Margin expansion across both Beauty and Fashion
Technical outlook
From a technical standpoint, Nykaa has been range-bound.
Here’s what analysts are saying:
- Rajesh Bhosale (Angel One) notes that the stock failed to break its 200-day simple moving average (DSMA), a key resistance level.
- Support zone lies between ₹160–₹165.
- A breakout above ₹180 is needed to turn the trend bullish, with ₹210 as a target.
- Until then, the stock is expected to stay sideways.
In fact, Anshul Jain (Lakshmishree Investment) pointed out that Nykaa has already corrected 31% over the last 18 weeks, and is forming a bullish base. But that doesn’t guarantee an uptrend until the breakout level is confirmed.
You may also read: FSN’s Nykaa & Honasa’s Mamaearth: A relative study
Key takeaways for investors
- Good results don’t always mean short-term gains. Stock prices move on expectations, not just fundamentals.
- Nykaa’s core business is solid, especially in beauty. But fashion still has a way to go.
- Retail expansion, order volume, and SSSG (same-store sales growth) are positives.
- Technical indicators show consolidation – wait for a breakout before entering.
- Broader market sentiment and global factors like geopolitical tensions are still influencing movement.
Conclusion
Nykaa’s Q4 FY2025 update shows a company that’s still growing and trying to balance brand-building with profitability. But the market isn’t in a forgiving mood right now. A 9% drop despite good numbers is a reminder that markets often care more about expectations and sentiment than plain revenue figures.
So if you’re already invested, it might be worth holding on. But if you’re looking to enter, maybe don’t rush in just yet. Let the price action confirm the trend.
And remember, not all red candles mean panic. Sometimes, they’re just part of the story.
