This major Indian e-commerce player, renowned for its beauty and fashion platform, is expected to have notable shareholder activity. Early investors instrumental in the company’s rise are preparing to divest a partial stake, signaling potential portfolio adjustments. This article details the planned transaction’s scope, market implications, and context behind the ownership shift.
Fsn E-Commerce Ventures Limited’s stock, with a market capitalisation of Rs. 58,021 crores, fell to Rs. 201, hitting a low of up to 5 percent from its previous closing price of Rs. 211.59. However, the stock over the past year has given a return of 15.9 percent.
Block Deal
FSN E-Commerce Ventures Ltd., Nykaa’s parent company shares fell following the Banga family, early investors in the beauty and personal care platform, plans to sell 2.1% stake worth approximately $140.3 million (Rs 1,198 crore) through block deals. The sale involved about 6 crore shares at a floor price of Rs 200 per share, a 5.5% discount from the previous day’s closing price of Rs 211.59, with Goldman Sachs and JP Morgan managing the transaction.
The Banga family, led by Harindarpal Singh Banga, previously held a 4.97% stake in Nykaa as of March 2025, having reduced their holdings from 6.4% in June 2024 after selling 4.09 crore shares in August 2024 for Rs 851 crore.
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Brands Owned and GMV
Nykaa’s House of Brands continues to grow strongly, especially in the beauty segment. The beauty own brands achieved a GMV of Rs. 1,700 crore in FY25, growing 55% YoY, with Q4FY25 GMV rising 72% YoY to Rs. 526 crore. About 40% of these sales came from outside Nykaa’s own channels like Amazon, D2C websites, and general trade.
Key brands include Dot & Key, now a Rs. 530 crore brand after growing 14x since acquisition, Nykaa Cosmetics with over Rs. 350 crore GMV and 120+ new launches, and Kay Beauty, which grew rapidly with a premium positioning. The company is focused on premiumization, innovation, and expanding its reach through strong distribution networks.
In fashion, Nykaa’s own brands delivered Rs. 430 crore in FY25 GMV, with growth largely coming from its own platforms (+21% YoY), while overall growth was moderate at 4% due to a reduced focus on third-party channels. Nykd, the lingerie brand, holds the #1 position on Nykaa and ranks among the top 3 on Amazon, while Twenty Dresses crossed Rs. 100 crore GMV in the western wear segment. The company is focusing on improving business quality by prioritizing sales through its own platforms and enhancing its product offerings through innovation and strong brand-building efforts.
Q4 Financial Highlight
The company reported revenue of Rs. 2,062 crore in Q4FY25, up 23.6 percent year-on-year from Rs. 1,668 crore in Q4FY24 but down 9 percent quarter-on-quarter from Rs. 2,267 crore in Q3FY25. This reflects a solid recovery year over year despite the quarterly decline. Over the last three years, the company maintained a revenue CAGR of 28 percent, highlighting steady long-term growth.
Net profit for Q4FY25 stood at Rs. 19 crore, up 111 percent YoY from Rs. 9 crore in Q4FY24 but down 27 percent QoQ compared to Rs. 26 crore in Q3FY25. Despite the quarterly dip, the company’s 3-year profit CAGR of 17 percent and ROE CAGR of 3 percent indicate sustained profitability improvements over time.
Written By Fazal Ul Vahab C H
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