Shares of Nykaa's parent firm FSN E-Commerce Ventures were muted on Wednesday after the company posted its first quarter results the previous day.

What Happened: Nykaa reported a 192% surge in its net profit to ₹9.64 crore in the April to June period. Revenue from operations came in at ₹1,746.11 crore, marking a 22.7% jump from the corresponding quarter last year. The profit and revenue numbers fell below analysts' estimates.

The EBITDA for Q1 stood at ₹96.1 crore, whereas the EBITDA margin was 5.5%.

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The company also announced the acquisition of stakes in two brands: Nykaa has acquired an additional 39% stake in cosmetic brands Dot & Key, increasing its stake in the company from 51% to 90%. The company also acquired up to 57,302 equity shares and 12,226 warrants of beauty brand Earth Rhythm. 

Kotak Securities had an "add" recommendation on the stock with a target price of ₹195. 

During the quarter, consolidated gross merchandise value (GMV) grew 25% year-on-year to ₹3,321 crore. GMV for the beauty and personal care segment rose 28%. Nykaa Fashion GMV witnessed a growth of 15%

Price Action: Nykaa's shares were up 0.95% at ₹189.04 on Wednesday morning. 

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