Here's What To Expect From Nykaa's Q1 Earnings

Shares of FSN E-Commerce Ventures, the parent company of online beauty and fashion platform Nykaa, were in the red ahead of its first quarter results on Tuesday.

What Happened: The company is expected to report healthy growth in its revenue and profit numbers in the June quarter.

Revenue is expected to jump by about 28%, while net profit could soar by more than 400% on a year-on-year basis to between ₹10.6 crore and ₹17.5 crore, based on estimates from three brokerages.

Brokerage Estimates: JM Financial sees the company's overall gross merchandise value (GMV), which is the total value of merchandise sold within a certain period, increasing by 24.6%.

Beauty and personal care (BPC) unit is seen growing at 24% and the fashion segment may clock in a growth of 16% compared to the same period last year. The company expects EBITDA margin to marginally improve by 9 basis points year on year.

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Kotak Equities estimates BPC revenue growth at 23% and the fashion unit's revenue growth at 36%. It sees an EBITDA margin of 5.4%, implying an expansion of 26 basis points.

Nykaa has forecast a year-on-year GMV growth in the mid-20s, as per its Q1FY25 business update in July. The beauty vertical is expected to post a revenue growth of around 22-23% year on year, the company had said at the time.

Starting this quarter, Nykaa will begin vertical-wise segmental reporting: The beauty segment will include the online beauty platform Nykaa, beauty-owned brands and physical stores, among others. The fashion segment will encompass the Nykaa Fashion platform, fashion-owned brands, content platform LBB and the Nykaa Man lifestyle business.

Price Action: Nykaa's shares were trading 2.04% lower at ₹190.62 on Tuesday.

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