Nykaa Q1 Preview: PAT seen growing multifold; BPC, fashion to drive revenues

FSN E-Commerce Ventures, which operates beauty and fashion omnichannel retailer Nykaa, is expected to report healthy revenues during the first quarter ended June 2024, driven by the BPC (beauty and personal care) and fashion businesses.

Revenue for the reporting quarter is seen growing 26% year-on-year, according to an average estimate of three brokerages. Net profit however is estimated to surge up to 429%.

Equirus Securities has the highest PAT estimate for the company at Rs 17.5 crore, which is an increase of 429%. JM Financial's profit estimate for Nykaa is the lowest at Rs 10.6 crore, up 221% year-on-year.


The company had reported a profit of Rs 6.9 crore in the preceding March 2024 quarter and Rs 3.3 crore in the year-ago quarter.

Here's what analysts expect from Nykaa Q1

JM Financial

We expect overall GMV to grow by 24.6% YoY (3.3% QoQ), with BPC at 24% YoY (8.2% QoQ), Fashion at 16% YoY (-10% QoQ) and Others at 66.4%/6.4% YoY/QoQ.

Growth is lower than the suggested goal during Analyst Day 2024 but that ambition was for the medium-term with Q1 being impacted by elections and heat-wave.

We expect EBITDA margin to marginally improve by 9bps YoY, though a dip of 34bps sequentially. Management’s commentary on industry trends in BPC/Fashion in FY25, competitive landscape and international expansion plan should be keenly watched.

Kotak Equities

We model overall GMV/revenue growth of 30/27% YoY, primarily driven by BPC GMV/revenue growth of 25/23% YoY and fashion business GMV/revenue growth of 35/36% YoY.

We expect EBITDA margin of 5.4%, implying expansion of 26 bps yoy and a contraction of 15 bps QoQ. While we do expect higher margin from BPC and some loss reduction in fashion and eB2B, this could be negated by loss from GCC.

Equirus Securities

Nykaa will deliver 28%/9% YoY/QoQ revenue growth with sequentially flat gross margin/ EBITDA margin.

Key things to watch for: 1) BPC - advertising revenue and EBITDA margin improvement; new customer addition, 2) Fashion - NSV growth and loss reduction.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)