Shares of FSN E-Commerce Ventures, the parent company of Nykaa, were muted on Tuesday ahead of the firm’s second-quarter earnings.

What Happened: Kotak Securities expects overall Gross Merchandise Value (GMV) and revenue growth of 25% and 26% year-over-year, respectively. This growth will be primarily driven by a 27% increase in the beauty and personal care (BPC) segment’s GMV and a 16% rise in the segment’s revenue, along with an 18% increase in the fashion business GMV and a 26% growth in the fashion revenue year-over-year, the brokerage said.

Kotak anticipates an EBITDA margin of 6.1%. This margin growth is expected to be driven by operating leverage in the BPC segment and reduced losses in the fashion business, it said.

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ICICI Securities models an EBITDA growth of 26.8% YoY while it sees net profit increasing by 172.2% YoY ₹15.9 crore in the second quarter. Their estimates are backed by Nykaa’s previous guidance for consolidated net revenue growth in the mid-twenties. For the fashion category, the management expected the growth in net sales value in the low double digits.

According to Nuvama Institutional Equities, revenue is expected to grow by 26.2% YoY driven primarily by the BPC business, while the fashion segment is expected to remain subdued. It sees a slight improvement in the EBITDA margin to 6.1% for the period.

Price Action: Nykaa was trading 0.18% higher at ₹183.16 on Tuesday morning.

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