The company's revenue jumped 28% year-on-year to ₹3,006 crore as net profit tripled during the September quarter of FY27. Profitability was further bolstered by an expanded physical store count of 338 and rising contributions from in-house labels like Kay Beauty and Dot & Key. Even though the fashion division logged its third straight quarter of positive Ebitda, heavy customer loyalty investments are projected to keep segment margin gains gradual. Meanwhile, the B2B Superstore arm threatens to dilute overall margins despite its 28% net sales value increase.
Key points
Management aims to scale fashion margins into high single digits by FY30 before targeting…: Management aims to scale fashion margins into high single digits by FY30 before targeting a long-term level above 10%.
Elevated competition from better-funded rivals continues to pose a persistent headwind to…: Elevated competition from better-funded rivals continues to pose a persistent headwind to long-term market share and profitability.
Nykaa trades at a steep EV/Ebitda multiple of 61 based on consensus FY28 Bloomberg estima…: Nykaa trades at a steep EV/Ebitda multiple of 61 based on consensus FY28 Bloomberg estimates after a 31% calendar-year stock rally.
Sources checked by our analysis pipeline: 1
Shares of FSN E-Commerce Ventures (Nykaa) hit a new 52-high of ₹363.40 on Thursday. Although the festive season has shifted to the December quarter (Q3FY27), Nykaa investors are already cheering as the September quarter (Q2FY27) results signal improving profitability.
Revenue rose 28% to ₹3,006 crore year-on-year, while net profit tripled to ₹101 crore. Gross merchandise value (GMV) grew 30% to ₹6,151 crore, driven by beauty and personal care (BPC) GMV of ₹4,454 crore, up 25% year-on-year. The improvement was buoyed by a 26% increase in annual unique transacting customers and an increase in store count from 265 to 338 in a year. Fashion drove growth, with GMV increasing 42% to ₹1,674 crore. Higher traction in BPC and fashion caused the Ebitda margin to expand at a multi-quarter high of 8.7%, from 6.8% in Q2FY26.
BPC margin expanded from 9% to 10.5%, and fashion sustained positive Ebitda for the third straight quarter, against a 3.5% loss in Q2FY26. Operating leverage, marketing efficiencies, and the ramp-up of House of Nykaa have supported BPC profitability.
Escalating raw material expenses and geopolitical shipping disruptions are driving up the cost of traditional festive sweets and premium gift hampers by at least 15%. Multiple dairy brands have implemented price hikes, while imported nuts have surged due to supply hurdles stemming from the US-Iran conflict. As a result, corporate clients across major industries are shrinking their holiday gift orders to manage budgets.
Strong vehicle volume growth pushed the automaker's stock up 5.6% to Rs 3,128.9 as it secured substantial market share. However, escalating commodity prices eroded profitability across both automotive and farm machinery operations. Broader strength across financial and technology services helped cushion the impact of tractor sales declines and sector headwinds.