FSN E-Commerce Ventures Limited (NYKAA) — Financial Results Announcement

Investor Takeaways

Overall Tone: Positive

Key Financial Highlights

What Changed

The filing highlights significant financial and operational expansion. Revenue growth accelerated to 28% YoY in Q4 FY26, contributing to full-year revenue of ₹10,000 crores. Gross profit reached ₹4,516 crores (45.1% margin), up 30% YoY, while EBITDA rose 59% YoY to ₹223 crores (7.5% margin). PAT surged 183% YoY to ₹204 crores (2% margin), driven by improved operational efficiency and scale. The company added 168 stores during the year, expanding its physical footprint to 313 stores across 99 cities, with a strategic focus on Tier 2 and Tier 3 markets. Premium categories like K-Beauty (58% GMV growth) and dermacosmetics (40% GMV growth) outperformed overall GMV growth, contributing to higher margins. Strategic partnerships with global luxury brands (Chanel, La Prairie, L'Oreal) strengthened brand positioning. Quarterly trends show consistent revenue and profit growth across all four quarters of FY25, with OPM improving from 5.5% in Q4 FY24 to 7.5% in Q4 FY26. The company also launched Nykaa Now, targeting aggressive marketing in FY27, and plans to open 50–60 new stores annually to reach ~500 stores in Tier 2/3 towns over 2–3 years.

Peer Comparison

Nykaa’s P/E ratio of 1513.33 is significantly higher than peers DMART (104.25) and Trent (75.43), indicating market expectations of sustained high growth despite current profitability levels.

Risks & Concerns

Quarterly Trend

The company demonstrated consistent quarterly growth in revenue and profitability, with OPM expanding from 5.5% in Q4 FY24 to 7.5% in Q4 FY26, reflecting improving operational leverage.