Nykaa isn’t just a cosmetics website anymore, it’s one of India’s most recognised platforms in the beauty and fashion space. Founded in 2012, it started as a small online beauty retailer and grew into a full-blown lifestyle e-commerce brand. It went public in 2021, and since then, Nykaa’s share price has been closely tracked by investors, especially retail ones looking to ride India’s beauty wave.
But on 2 June 2025, despite strong quarterly numbers, the Nykaa share price fell by 4.3% to ₹194.45.
Let’s look at why this happened and what it really means.
Nykaa’s Q4FY25 financial performance
Nykaa’s fourth-quarter results for the financial year ending March 2025 were impressive year-on-year. But when compared to the previous quarter (Q3FY25), the picture was a bit mixed, and that’s likely what triggered the sell-off.
Here’s a breakdown:
| Metric | Q4FY25 | YoY Growth | QoQ Change |
| Net Profit | ₹20.28 crore | Up 193% | Down 22.4% |
| Revenue from Operations | ₹2,062 crore | Up 23.6% | Down 9% |
| EBITDA | ₹133 crore | Up 43% | – |
| GMV (Gross Merchandise Value) | ₹4,102 crore | Up 27% | – |
So, yes, Nykaa posted growth. But markets tend to look not just at YoY figures, but also at short-term trends. The drop in profit and revenue compared to the last quarter raised a few eyebrows.
Also read: Nykaa stock analysis and expert insights in detail
Why did Nykaa’s share price fall?
Even with a strong year-on-year jump in profit and revenue, the market often reacts to more than just the numbers.
- Sequential Decline: Net profit and revenue were down compared to Q3FY25, which may hint at seasonal softness or lower consumer demand.
- Fashion Segment Still Dragging: Beauty continues to do well, but fashion, despite some growth, remains a low-margin business and continues to lose money.
- Investor Expectations: When a stock has already gained 25% in a year (compared to the Sensex’s 7%), expectations are high. So even slight underperformance on the QoQ side can lead to correction.
That’s why, despite a good financial year overall, the Nykaa share price dipped.
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Analyst recommendation
Brokerages have taken note, and while most are positive on Nykaa, they’re also keeping a close eye on the fashion business and margin pressures.
| Brokerage | Rating | Target Price | View |
| Elara Capital | Accumulate | ₹215 | Fashion loses a concern; trimmed EPS for FY26-27 |
| JM Financial | Buy | ₹250 | BPC is strong, but marketing costs are affecting margins |
| Jefferies | Buy | ₹240 | Impressed with growth despite weak demand |
| Nuvama Institutional | Buy | ₹235 | Fashion is still monitorable; BPC remains the growth engine |
Most firms agree that Nykaa stock is still positive long-term, especially with strong growth in the BPC (Beauty and Personal Care) segment. But fashion needs to perform better if Nykaa wants to push margins further.
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Bottom line
Nykaa’s financial year ended on a strong note, but the market wanted more on the momentum front. While the long-term outlook remains intact, the next few quarters will be crucial, especially for fashion performance and margin expansion.
If you’re a long-term investor who believes in Nykaa’s brand and growth potential, this could be a time to watch and hold.
Either way, keep the fundamentals in focus, and don’t get swayed by single-day moves.
