In a significant development for India’s beauty and fashion e-commerce sector, this leading multi-brand retailer anticipates robust growth, projecting mid-twenties revenue expansion overall. With beauty segment GMV growth expected in the low thirties and fashion vertical aiming for 20% growth, the company remains bullish on its long-term trajectory in the evolving market.
Share Price Movement
The share price of FSN E-Commerce Ventures Limited hit an intraday high of 5.22 percent to Rs. 179.60 per share on Monday, an increase from its previous close of Rs. 167.84 per share. The market capitalisation now stands at approximately Rs. 49,847 crore as of January 06, 2025.
What’s Driving the Exceptional Share Price Surge?
Management has given guidance that Nykaa’s revenue is expected to grow above the mid-twenties, with beauty GMV growth in the low thirties. The Superstore eB2B business is expanding, serving 2.6 lakh retailers in 1,100+ cities. The fashion vertical should see around 20% revenue growth, and NSV growth will be in the low to mid-teens. Despite weak online fashion demand, Nykaa is optimistic about long-term growth.
Financial Highlights
According to its recent filing, in the quarter ending September 2024, FSN E-Commerce Ventures’s consolidated revenue from operations has increased by 24.4 percent YOY from Rs. 1,507 crore in Q2 FY24 to Rs. 1,875 crore in Q2 FY25 and increased by 7.38 percent QoQ from Rs. 1,746 crore in Q4 FY24.
The company’s consolidated net profit has increased by 62.5 percent , from Rs. 8 crore in Q2 FY24 to Rs. 13 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has decreased by 7.14 percent QoQ from Rs. 14 crore.
The average price-to-earnings (P/E) ratio in the e-commerce industry is 56.31, which is far less than FSN E-Commerce Ventures current P/E ratio of 1,170.
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Market Outlook
India’s retail industry is poised for exponential growth, projected to reach $2 trillion by 2033. Accounting for 26%-28% of GDP, retail is expanding faster than overall GDP at 9%-10% annually. The beauty and personal care (BPC) market, valued at $21 billion in 2023, is expected to grow to $34 billion by 2028, driven by e-commerce, consumer education, and innovation.
Rising urban incomes and discretionary spending make India a lucrative destination for global brands, fostering growth across diverse retail categories.
Shareholding Pattern
As of the September 2024 shareholding pattern, FSN E-Commerce Ventures Limited is primarily held by the promoters at 52.18 percent, foreign institutional investors hold 10.13 percent, and the public with 15.86 percent.
About Company
FSN E-Commerce Ventures Limited, known for its flagship brand Nykaa, is a leading player in India’s beauty and wellness industry since 2012, offering products through online and retail stores. Headquartered in Mumbai, it boasts a dual business model of manufacturing and distributing a wide range of products while leveraging e-commerce and retail channels. Key achievements include a Rs. 5,352 crore IPO in 2021 and acquisitions like Dot & Key and Earth Rhythm, highlighting its innovation and market expansion.
Written By Fazal Ul vahab C H
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