EconomyCompanies
Nykaa's profit nearly triples and PhysicsWallah's doubles in the September quarter
Falguni Nayar's beauty and fashion retailer earned ₹101 crore on 28% higher revenue, while Alakh Pandey's edtech company swung back to profit after a June-quarter loss.
Key points
- Nykaa's net profit rose to ₹101.19 crore from ₹32.98 crore a year earlier.
- PhysicsWallah earned ₹142.29 crore against ₹69.72 crore and a June-quarter loss.
- Nykaa will buy an 82% stake in makeup brand Simply Nam.
Two of India’s best-known founder-led companies reported sharply higher profits on Wednesday evening: beauty and fashion retailer Nykaa nearly tripled its quarterly profit, and test-prep company PhysicsWallah doubled its own.
Nykaa’s parent FSN E-Commerce Ventures earned a net profit of ₹101.19 crore in the July to September quarter, against ₹32.98 crore a year earlier and 26.8% more than in the June quarter. Revenue from operations rose 28% to ₹3,006.04 crore, and operating profit (EBITDA) grew 65% to ₹263 crore, a margin of 8.7%.
Beauty, its core business, sold goods worth ₹4,454 crore, up 25%, while the fashion arm grew gross merchandise value 42% to ₹1,674 crore. Its quick delivery service, Nykaa Now, runs in 15 cities and is meant to reach more than 25 by the end of the financial year. Nykaa now has 338 stores.
“Our performance this quarter reflects the strength of the Nykaa ecosystem,” said founder and chief executive Falguni Nayar. “Beauty and fashion are seeing accelerated growth.”
The company also agreed to buy an 82% stake in Simply Nam, a professional makeup brand set up in 2022 with a turnover of ₹16.99 crore last year. The deal should close by 31 December.
PhysicsWallah back in the black
PhysicsWallah posted a net profit of ₹142.29 crore, up from ₹69.72 crore, after a loss of ₹87.04 crore in the June quarter. Revenue grew 18% to ₹1,242.26 crore. Online revenue rose 26.4% to ₹694 crore and its offline centres brought in ₹541 crore, up 9%.
NEET enrolments grew more than 30% as demand held back by the postponement of the NEET UG exam came through, and enrolments for school boards and CUET more than doubled to 4.55 lakh. The company had ₹5,268 crore in its treasury at the end of September, including money raised in its share sale.
“Our focus remains on scaling affordable, tech-led education with disciplined capital allocation,” said founder and chief executive Alakh Pandey.