Nykaa Q1 results FY27 preview: FSN E-Commerce Ventures, the owner of the Nykaa brand, is expected to report a strong set of earnings for the June quarter, led by healthy growth in its Beauty & Personal Care (BPC) business, improving performance in the fashion segment and better operating leverage, according to ET NOW Bureau estimates.
Nykaa Q1 results FY27: Expected revenue and profit
On a consolidated basis, revenue is expected to rise 28.2 per cent year-on-year to Rs 2,763 crore, compared with Rs 2,155 crore a year ago. EBITDA is likely to increase 63 per cent to Rs 230 crore from Rs 141 crore, while net profit is estimated to jump 3.6 times to Rs 83 crore from Rs 23.3 crore. EBITDA margin is expected to improve to 8.3 per cent from 6.5 per cent, an expansion of 180 basis points.
The estimates come after the company’s business update indicated a strong start to FY27. Consolidated Gross Merchandise Value (GMV) and Net Sales Value (NSV) are expected to grow in the early 30 per cent range during the quarter.
The BPC business is expected to remain the key growth driver, with GMV and NSV likely to increase 27.5 per cent and 26 per cent, respectively, broadly in line with the company’s guidance for late-20 per cent growth. The fashion segment is also expected to perform well, with NSV projected to grow in the mid-50 per cent range, while revenue growth is seen in the mid-20 per cent range.
Margin expansion is expected to be supported by operating leverage in the BPC business and improving profitability in the fashion segment, according to ET NOW Bureau estimates.
- BPC demand trends: Investors will look for management’s commentary on demand in the Beauty & Personal Care business, which remains Nykaa’s largest revenue contributor.
- Fashion segment profitability: The Street will closely track whether the fashion business continues to improve margins alongside strong growth.
- House of Nykaa performance: Updates on the company’s in-house brands and their contribution to overall growth will be in focus.
- Customer additions and order growth: Growth in active customers, repeat purchases and order volumes will be key indicators of demand.
- Offline expansion plans: Investors will watch for updates on store additions and the company’s retail expansion strategy.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
