{"id":57435,"date":"2025-07-04T18:08:12","date_gmt":"2025-07-04T12:38:12","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=57435"},"modified":"2025-11-06T23:23:24","modified_gmt":"2025-11-06T17:53:24","slug":"explained-why-nykaa-share-price-is-falling","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/explained-why-nykaa-share-price-is-falling\/","title":{"rendered":"Explained: Why Nykaa Share Price is Falling"},"content":{"rendered":"
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Earlier this week on Thursday, shares of FSN E-Commerce Ventures<\/a>, the parent company of Nykaa, fell as much as 5% following a block deal, involving some of its early investors.<\/p>\n\n\n\n

Today again, the stock price<\/a> declined by 2%.<\/p>\n\n\n\n

Nykaa Share Price Performance<\/strong><\/p>\n\n\n\n\n\n

Let\u2019s understand why the stock price is falling and whether a possible rebound is on the cards.<\/p>\n\n\n\n

Why Nykaa Share Price is Falling<\/h1>\n\n\n\n

According to reports, Nykaa\u2019s early investors Harindarpal Singh Banga and Indra Banga sold 6 crore shares on Thursday, representing around 2.1% stake in the company.<\/p>\n\n\n\n

Both the investors offloaded shares at an offer price of Rs 200 per share, a 5.5% discount to Wednesday\u2019s closing price.<\/p>\n\n\n\n

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

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.<\/p>\n\n\n\n

Details of the Block Deal<\/strong><\/p>\n\n\n\n

Detail<\/strong><\/td>Sellers – Harindarpal Singh Banga & Indra Banga<\/strong><\/td><\/tr>
Nykaa Block Deal<\/td>6 crore shares sold (\u22482.1% stake)<\/td><\/tr>
Sale Price<\/td>\u20b9200 per share (5.5% discount to previous close)<\/td><\/tr>
Pre-IPO Stake (2021)<\/td>8.7% (Harindarpal Singh Banga)<\/td><\/tr>
Bulk Sale (Aug 2024)<\/td>4.09 crore shares<\/td><\/tr>
Holding as of Mar 2025<\/td>14.2 crore shares (4.97% stake)<\/td><\/tr>
Post Block Deal Holding<\/td>Reduced further (exact % not yet disclosed)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Here\u2019s how the company\u2019s shareholding is split as of March 2025.<\/p>\n\n\n\n

<\/p>\n\n\n\n

About Nykaa<\/h2>\n\n\n\n

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. <\/p>\n\n\n\n

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.<\/p>\n\n\n\n

It offers products from global<\/a> and domestic brands across make-up, skincare, haircare, bath and body, fragrance, grooming appliances, personal care, and health and wellness categories.<\/p>\n\n\n\n\n\n

Source: HDFC Securities<\/p>\n\n\n\n

As can be seen from the chart above, Nykaa\u2019s business segments have seen phenomenal growth over the past few years. And this growth has trickled down to its financial performance.<\/p>\n\n\n\n

Financial Snapshot of Nykaa<\/h2>\n\n\n\n

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

Nykaa – FY25 Financial Highlights<\/strong><\/p>\n\n\n\n

Particulars (in Rs Cr)<\/strong><\/td>FY24<\/strong><\/td>FY25<\/strong><\/td>Growth (%)<\/strong><\/td><\/tr>
Revenue<\/td>6,386<\/td>7,950<\/td>24%<\/td><\/tr>
EBITDA<\/td>347<\/td>474<\/td>37%<\/td><\/tr>
Net Profit<\/td>40<\/td>72<\/td>80%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Source: Company Reports<\/p>\n\n\n\n

During the fiscal year, Nykaa saw its cumulative customer base grow 28% YoY.<\/p>\n\n\n\n

Nykaa – Cumulative Customer Base<\/strong><\/p>\n\n\n\n\n\n

Source: Investor Presentation<\/p>\n\n\n\n

Outlook<\/h2>\n\n\n\n

Last week, Nykaa showcased the company\u2019s aggressive growth strategy across beauty and personal care and fashion segments, with its eB2B business already witnessing strong growth momentum.<\/p>\n\n\n\n

In beauty and personal care, it aims for 25% annual growth in gross merchandise value (GMV) until FY30.<\/p>\n\n\n\n

In fashion, Nykaa targets 3\u20134 times GMV growth by FY30. It plans to break even on EBITDA by FY26 and reach mid-to-high single-digit margins by FY28. <\/p>\n\n\n\n

Nykaa Fashion Segment Growth<\/strong><\/p>\n\n\n\n\n\n

Source: HDFC Securities<\/p>\n\n\n\n

The House of Nykaa beauty line is expected to hit \u20b96,000 crore in GMV by FY30, showing about 30% annual growth.<\/p>\n\n\n\n

Nykaa has also made a strategic entry into the international markets under the brand \u2018Nysaa\u2019.<\/p>\n\n\n\n

The company even forayed into the quick-commerce arena<\/a> 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.<\/p>\n\n\n\n

Nykaa Launches Nykaa Now<\/p>\n\n\n\n\n\n

Source: Investor Presentation<\/p>\n\n\n\n

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<\/a> such as fashion.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Happy Investing.<\/p>\n\n\n\n

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis \u2013 Research & Ranking. We will not be liable for any losses that may occur. Investments<\/a> in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI<\/a>, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

Earlier this week on Thursday, shares of FSN E-Commerce Ventures, the parent company of Nykaa, fell as much as 5% […]<\/p>\n","protected":false},"author":22,"featured_media":57437,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[948],"tags":[1724,1723,1722,1721,724],"class_list":["post-57435","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market-news","tag-b2c-companies","tag-e-commerce-stocks","tag-fsn-e-commerce","tag-nykaa","tag-quick-commerce"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/57435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=57435"}],"version-history":[{"count":8,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/57435\/revisions"}],"predecessor-version":[{"id":59700,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/57435\/revisions\/59700"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/57437"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=57435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=57435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=57435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}