FSN E-Commerce Q1 FY27 Results (NSE: NYKAA)
Signal: Margin expansion
The read
Nykaa delivered a fifth consecutive quarter of margin expansion (OPM from 5% in Q1FY24 to 8.8% now), driven by strong revenue growth (+29.1% YoY), operating leverage in fixed costs, and a significant narrowing of fashion losses. PAT surged 243% YoY to ₹80 Cr. The inflection in fashion profitability is key to sustaining the margin trajectory.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,782 Cr | 29.1% | 5.1% |
| EBIT | ₹155.9 Cr | 111.0% | |
| Net profit | ₹80.01 Cr | 243.1% | |
| EPS | ₹0.28 | 250.0% | |
| EBIT margin | 5.60% |
P&L walk
Revenue growth of 29.1% YoY, aided by strong volume in Beauty (+27.4%) and acceleration in Fashion (+47.9%). Gross margin expanded ~125bps YoY to 45.85% on mix shift. EBITDA margin surged to 8.82% (+186bps YoY) as employee costs grew only 17.6% and finance costs fell 11.3%, demonstrating fixed-cost operating leverage. Depreciation grew slower than revenue. PAT at ₹80 Cr (+243% YoY) benefited from operating leverage and lower interest, with EPS growing 250%.
Segments
Beauty segment remains the profit engine with ₹159.10 Cr PBIT (6.3% margin), while Fashion segment loss narrowed sharply from ₹-27.01 Cr to ₹-8.52 Cr, and Others (international) loss widened to ₹-13.90 Cr.
Key positives
- Consolidated revenue grew 29.1% YoY to ₹2,782 Cr, accelerating from 23.4% in Q1FY26.
- EBITDA margin expanded 186bps YoY to 8.82%, the highest in five quarters.
- Fashion segment loss narrowed to ₹-8.52 Cr from ₹-27.01 Cr YoY, a 68% reduction.
- PAT attributable to parent surged 243.1% YoY to ₹80.01 Cr; EPS grew 250% YoY to ₹0.28.
- Employee costs grew only 23.5% vs revenue 29.1%, indicating operating leverage.
- Finance costs declined 11.3% YoY, aiding bottom-line growth.
Key concerns
- Others (international) segment loss widened to ₹-13.90 Cr from ₹-8.67 Cr YoY.
- Standalone (holding company) profit of ₹9.57 Cr is heavily reliant on other income (409% of PBT).
Research and educational content only. Not investment advice.