FSN E-Commerce Ventures Ltd., the entity that operates the Indian beauty startup Nykaa, saw its profit fall 96% as marketing costs surged in the quarter before its initial public offering. Shares dropped on Monday.

Net income dipped to Rs 1.2 crore ($161,000) in the quarter ended September from Rs 27 crore the previous year, according to a statement late Sunday, as a 92% increase in expenses swamped a 47% gain in revenue. Shares are down 5.2% at Rs 2,236.5 as on 10:07 am in Mumbai after declining as much as 7.3% in early trade.

This is the first results filing since shares of the Mumbai-based firm were listed on the exchanges last week and doubled in value. The IPO made Falguni Nayar, who owns about half the company, worth almost $7 billion and India's wealthiest self-made female billionaire.