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Beauty retailer Nykaa recorded its highest-ever quarterly profit in the third quarter of financial year 2024, driven by strong festive season demand during the quarter.

FSN E-commerce Ventures—the parent company of Nykaa—reported a quarterly profit of Rs 17.4 crore in Q3 FY24, up by a whopping 105% from Rs 8.4 crore in the same period last year. The Falguni Nayar firm’s revenue from operations rose 22% to Rs 1,788.7 crore year-over-year.

Meanwhile, total expenses surged to Rs 1,769.8 crore, up 21% from Rs 1,455.7 in the year-ago period.

At market close on Tuesday, Nykaa shares were trading at Rs 160.55 apiece on the Bombay Stock Exchange.

In a stock exchange filing, Nykaa said the company’s Board approved an investment of Rs 150 crore into Nykaa Fashion—its second-largest business by revenue—through a rights issue, aimed at repaying loans given by Nykaa to the fashion vertical.

The Board further approved the acquisition of Nykaa Fashion’s athleisure and lingerie business in a slump sale.

“The key objective of these initiatives is towards bringing in operational synergies by streamlining business operations and placing them with the entity that carries the relevant expertise and consolidation of owned brands business in the Company which is aimed to be completed over a period of time,” Nykaa said.

(This is a developing story and will be updated with more details.)