Nykaa block deal: Shares of FSN E-Commerce Ventures Ltd, commonly known as Nykaa, traded 4% lower at ₹203.10 per share on the NSE in morning trade on Thursday, July 3, after a block deal was witnessed in the company.
According to a TV report, six crore shares representing 2.3% equity changed hands through the block deal during the block deal window in the morning session.
Earlier, reports said that Harinderpal Singh Banga and Indra Banga are likely to sell 2.1% equity of Nykaa through the block deal.
The Banga family is one of the early backers of Nykaa. The family invested in the beauty and personal care platform in 2014 and bought shares when the company was valued at $20 million. Eleven years later, the company has grown manifold and is now valued at around $700 million, resulting in significant profits for the Banga family, says a Moneycontrol report.
Nykaa sets break-even target for fashion arm in FY26
Recently, FSN E-Commerce Ventures said it has set a break-even target of FY26 for its cash-burning fashion arm due to marketing efficiency, overhead leverage and own brand growth.
Nykaa is also entering the quick-commerce space with “Nykaa Now”, which offers delivery times ranging from 30 to 120 minutes in seven major cities. The service is backed by a network of beauty warehouses, physical retail stores and rapid stores across the country.
The fashion vertical, which generated about ₹3,800 crore in GMV (gross merchandise value), is currently a drag on consolidated profitability, having posted a negative EBITDA margin of (8.3%) for FY25.
The Mumbai-headquartered firm anticipates achieving EBITDA break-even by FY26 and reaching a “steady state” margin of around 10 per cent by FY28. In its annual investor day presentation last week, Nykaa said the turnaround will be driven by a mix of strong repeat purchases, growth of its own brands and significant leverage in overheads with scale.
Nykaa’s profit more than doubled to Rs 66.08 crore in FY25 from Rs 32.26 crore in the previous fiscal. Its revenue from operations stood at ₹7,949.82 crore in FY25, up 24.4% from ₹6,385.62 crore in FY24. During the fiscal, Nykaa saw its cumulative customer base grow 28% year-on-year to over 42 million. It added 50 retail stores during the year, taking its total count to 237 stores, while its gross merchandise value (GMV) stood at ₹15,604 crore.
