FSN E-Commerce Ventures (NYKAA) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 GMV was INR 6,151 crore, up 30% YoY; revenue was INR 3,006.04 crore, up 28%, while EBITDA rose 65% and net profit rose 207%.

• Growth and profitability strengthened across Beauty and Fashion; Beauty EBITDA margin reached 10.5%, while Fashion recorded a third consecutive profitable quarter on its operating measure.

Financial highlights

• Q2 revenue from operations was INR 3,006.04 crore versus INR 2,345.98 crore YoY; total income was INR 3,015.56 crore versus INR 2,354.01 crore.

• Gross profit was INR 1,382 crore, up 31% YoY; gross margin expanded 106 bps to 46.0%.

• EBITDA was INR 263 crore, up 65%, with an 8.7% margin, up 196 bps; PAT was INR 101.19 crore, up 207%, with a 3.4% margin.

• H1 revenue was INR 5,788.04 crore, up 29%; EBITDA was INR 499 crore, up 66%, and PAT was INR 180.95 crore, up 215%.

• Marketing and S&D expenses declined 50 bps YoY to 15.2% of revenue; employee and other expenses declined 87 bps to 11.9%, while fulfillment expense rose 47 bps amid infrastructure investment.

Outlook and guidance

• Fashion long-term EBITDA margin guidance remains high single digits by FY30 and 10%+ at steady state; management does not expect the improvement next year and gave no near-term quarterly guidance.

• Beauty’s store network is targeted to reach ~600 over the next few years, from 338 currently.

• Nykaa Now operated in 15 cities in Q2, with 25+ cities planned by FY27-end; delivery is offered in 30–60 minutes.

• Management was optimistic on Q3 festive trading but said full-quarter results would be needed to assess demand; H1 festive inventory buildup is expected to normalize by Q3-end.

• Simply Nam acquisition is expected to close by December 31, 2026, subject to closing conditions and approvals.