Earlier this week on Thursday, shares of FSN E-Commerce Ventures, the parent company of Nykaa, fell as much as 5% following a block deal, involving some of its early investors.

Today again, the stock price declined by 2%.

Nykaa Share Price Performance

Let’s understand why the stock price is falling and whether a possible rebound is on the cards.

Why Nykaa Share Price is Falling

According to reports, Nykaa’s early investors Harindarpal Singh Banga and Indra Banga sold 6 crore shares on Thursday, representing around 2.1% stake in the company.

Both the investors offloaded shares at an offer price of Rs 200 per share, a 5.5% discount to Wednesday’s closing price.

Harindarpal Banga held an 8.7% stake in Nykaa before it listed in 2021. Prior to this block deal, he reduced some of his stake in August 2024, selling 4.09 crore shares via a bulk deal.

As of March 2025, Harindarpal Banga owned 14.2 crore shares of Nykaa, aggregating to 4.97% stake in the company, which has come down following the recent block deal.

Details of the Block Deal

Detail	Sellers – Harindarpal Singh Banga & Indra Banga
Nykaa Block Deal	6 crore shares sold (≈2.1% stake)
Sale Price	₹200 per share (5.5% discount to previous close)
Pre-IPO Stake (2021)	8.7% (Harindarpal Singh Banga)
Bulk Sale (Aug 2024)	4.09 crore shares
Holding as of Mar 2025	14.2 crore shares (4.97% stake)
Post Block Deal Holding	Reduced further (exact % not yet disclosed)

Here’s how the company’s shareholding is split as of March 2025.

About Nykaa

If I ask you to name ‘new-age tech stocks,’ chances are good you will quickly say ‘Nykaa.’ The company has carved out a name for itself in India’s booming e-commerce market. 

At its core, Nykaa is a consumer technology platform which has a diverse portfolio of beauty, personal care, and fashion products. These include its own branded products that it manufactures.

It offers products from global and domestic brands across make-up, skincare, haircare, bath and body, fragrance, grooming appliances, personal care, and health and wellness categories.

Source: HDFC Securities

As can be seen from the chart above, Nykaa’s business segments have seen phenomenal growth over the past few years. And this growth has trickled down to its financial performance.

Financial Snapshot of Nykaa

In FY25, Nykaa’s revenue surged 24% YoY while its net profit spiked 81% and came in at Rs 72 crore. 

Nykaa – FY25 Financial Highlights

Particulars (in Rs Cr)	FY24	FY25	Growth (%)
Revenue	6,386	7,950	24%
EBITDA	347	474	37%
Net Profit	40	72	80%

Source: Company Reports

During the fiscal year, Nykaa saw its cumulative customer base grow 28% YoY.

Nykaa – Cumulative Customer Base

Source: Investor Presentation

Outlook

Last week, Nykaa showcased the company’s aggressive growth strategy across beauty and personal care and fashion segments, with its eB2B business already witnessing strong growth momentum.

In beauty and personal care, it aims for 25% annual growth in gross merchandise value (GMV) until FY30.

In fashion, Nykaa targets 3–4 times GMV growth by FY30. It plans to break even on EBITDA by FY26 and reach mid-to-high single-digit margins by FY28. 

Nykaa Fashion Segment Growth

Source: HDFC Securities

The House of Nykaa beauty line is expected to hit ₹6,000 crore in GMV by FY30, showing about 30% annual growth.

Nykaa has also made a strategic entry into the international markets under the brand ‘Nysaa’.

The company even forayed into the quick-commerce arena by launching Nykaa Now, its quick commerce platform for beauty products. As per the company, Nykaa Now will fulfill orders between 30 and 120 minutes.

Nykaa Launches Nykaa Now

Source: Investor Presentation

While the recent block deal has added pressure to its stock price, the business remains intact and the company is eyeing massive growth in fast growing segments such as fashion.

Having said that, the e-commerce space is filled with deep-pocketed players as well as new entrants. Nykaa faces stiff competition from reputed brands, which could pressure its market share and margins. These metrics should be closely monitored.

Happy Investing.

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