Nykaa gets a thumbs up from investors after a strong Q2 performance

Further gains in margins and growth acceleration in the fashion section are potential triggers

Excellent results from FSN E-commerce (Nykaa) led to a big surge in the share price. This bucks the trend where most unicorns have seen bearish movements after listing. Nykaa reported revenue growth of 7.2 per cent quarter-on-quarter or QoQ (39 per cent year-on-year (YoY)) to Rs 1,231 crore in the July-September quarter (Q2) of 2022-23. Gross profit grew 9.4 per cent QoQ (47.5 per cent YoY) to Rs 558 crore. EBITDA grew 32.8 per cent QoQ (and 112 per cent YoY) to Rs 61 crore in Q2. Apart from revenue growth, decreased marketing & advertising expenses (down 5.8 per cent