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Nykaa Q3 results preview: FSN E-Commerce Ventures, parent of online beauty and fashion brand Nykaa, is all set to release its third quarter ended December 31, 2024, results on Monday, February 10, 2025.
Brokerages tracked by Business Standard estimate the revenue of Nykaa to grow 26.9 per cent year-on-year (Y-o-Y), on average, to Rs 2,270.26 crore as compared to Rs 1,788.8 crore a year ago. On a quarter-on-quarter (Q-o-Q) basis, revenue is forecasted to increase 21 per cent.
Nykaa's adjusted profit after tax (PAT) for the quarter that ended December 31, 2024, is estimated to zoom 81.9 per cent to Rs 33.66 crore, on average, as compared to Rs 18.5 crore a year ago. On a quarterly basis, the adjusted PAT is expected to jump 178.18 per cent.
Analysts and investors will keep an eye on management's commentary fashion segment, unwinding on working capital and competitive landscape shift.
Here's how brokerages expect Nykaa to fare in Q3:
HDFC Securities: Analysts believe Nykaa's beauty and personal care (BPC)/ Fashion revenue in gross merchandise value (GMV) is likely to clock 44.9 per cent/6.9 per cent Y-o-Y growth respectively.
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Its BPC's average order value (AOV) is likely to be healthy at Rs 2,100. Further, BPC/Fashion annual unique transacting customers (AUTC) are expected to grow 40.7 per cent/13.8 per cent Y-o-Y and BPC/Fashion orders are expected to rise 44.2 per cent/15.5 per cent Y-o-Y.
The brokerage expects overall Earnings before interest, tax, depreciation and amortisation (Ebitda) margin at 6.2 per cent in Q3FY25 as against 5.5 per cent a year ago. Overall Ebitda is estimated at Rs 140 crore as compared to Rs 98.8 crore a year ago.
Nuvama Institutional Equities: The brokerage expects 31 per cent/20 per cent Y-o-Y growth in BPC/Fashion GMV. Overall, revenue is likely to increase 27 per cent Y-o-Y to Rs 2,271.8 crore as compared to Rs 1,788.8 crore. A slight improvement in Ebitda margin is likely at 5.6 per cent in Q3FY25 as compared to 5.5 per cent in Q2.
Overall, Ebitda for Q3 is pegged at Rs 127.2 crore as compared to Rs 98.8 crore a year ago.
JM Financial: In its Q3FY25 revenue update, the company reported low-thirties Y-o-Y growth in the BPC segment while highlighting that electronic business-to-business (eB2B) now accounts for 8 per cent of BPC GMV. The brokerage reckons core BPC to grow Y-o-Y in the range of 27-29 per cent.
"Such feisty growth, despite the narrative of quick commerce likely hindering Nykaa, goes a long way in confirming that quick commerce solves for a different use case and revalidates that BPC rise in quick commerce is unlikely to come at the cost of Nykaa," JM Financial said.
Overall revenue for the quarter under review is expected at Rs 2,279.6 crore as compared to 1,788.8 crore a year ago. JM Financial's channel checks suggested that Nykaa Fashion, despite reporting muted growth, is still gaining market share.
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