FSN E-Commerce Ventures Ltd, the parent company of Nykaa, has reported impressive results for FY25 following a bold decision to increase its marketing and advertising investment to ₹958 crore. This represents a 33 percent jump from ₹720 crore in FY24 and marks the brand’s biggest commitment yet to strengthening its presence in the beauty and fashion segments.

Aggressive Marketing Strategy to Build Brand and Categories

Nykaa’s strategic move goes against the grain in a time when many businesses are pulling back on discretionary expenses. Instead, Nykaa doubled down on high-impact campaigns, offline experiences, and influencer-driven engagement to further cement its leadership in beauty and fashion commerce.

A significant portion of the ₹958 crore was divided between two core verticals:

  • ₹620 crore was directed to the beauty segment, up from ₹462 crore in FY24.

  • ₹331 crore went to fashion, rising from ₹255 crore the previous year.

Combined, these spends amounted to 12.3 percent of the company’s total Net Sales Value, compared to 11.3 percent in FY24. The fashion division in particular saw a notable increase in marketing allocation, reaching 29.4 percent of NSV, clearly showing Nykaa’s focus on capturing attention in a highly competitive space.

Where the Money Went: Smart Investments, Not Random Splurges

Nykaa’s marketing approach was strategic and diversified:

  • Built a vast influencer network with over 28,000 affiliates

  • Created more than 15,000 shoppable videos and recorded 4 million live stream views

  • Introduced exclusive brand collaborations with global names such as Supergoop and L’Oréal

  • Conducted masterclasses, beauty diagnostics, and makeover sessions across 237 stores in 79 cities

This full-funnel approach reinforced brand awareness, educated consumers on product usage, and boosted trial rates across categories.

Impressive Results Across the Board

The marketing push led to a 24 percent year-on-year revenue increase, reaching ₹7,950 crore in FY25. The company’s Profit After Tax surged by 81 percent to ₹72 crore. Importantly, the EBITDA margin also improved to 6.0 percent, compared to 5.4 percent the previous year, demonstrating that the company’s marketing spend was an enabler of growth rather than a burden.

The fashion segment, while still growing in terms of profitability, also showed better contribution margins and EBITDA gains. Marketing helped shift consumer perception, increase average order values, and boost repeat purchase rates which stood between 23 to 33 percent across fashion categories.

 

Future Plans: Bigger Launches and Regional Focus

Looking ahead to FY26, Nykaa plans to amplify efforts in branded content, experiential marketing, and region-specific campaigns. The company will continue to invest in high-return digital media and has set the stage for more impactful product and campaign rollouts.

With the recent NCLT-approved merger of Little Black Book (LBB) with Nykaa Fashion, content and commerce will further integrate. This merger is expected to help boost consumer discovery and conversion through platform-led storytelling and influencer alignment.

 

Conclusion

Nykaa’s ₹958 crore advertising investment in FY25 is a case study in strategic brand building that delivers results. With sharp growth in both topline and profitability, Nykaa has shown that sustained marketing spend can drive scale, deepen engagement, and create long-term value.

 

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