Nykaa: Customer Acquisition Remains Strong in Beauty & Personal Care Segment

 FSN E-commerce Ventures’ (Nykaa) Q1 topline/revenue grew 23.4% YoY to INR 21.5bn (HSIE: INR21.7bn). BPC (Beauty & Personal care)/Fashion revenue grew 23.9/15.1% to INR 19.75/1.71bn (HSIE estimate was: INR19.9/1.71bn) respectively. Customer acquisition remains healthy in BPC (AUTC up 26% YoY to 16.5mn) while Fashion segment extended its recovery momentum, delivering GMV (Gross Merchandize Value) growth of 24.5% YoY.

Gross margin increased by 1.32% in June quarter

GM (Gross margin) expanded 132bps or 1.32% YoY to 44.6% (HSIE estimate was: 43.5%), driven by higher share of own brands, premiumization, and higher ad income. eB2B losses continued to ebb. Despite higher marketing and S&D spends, consolidated EBITDAM (EBITDA margin) rose 102bps or 1.02% YoY to 6.5% (HSIE estimate was: 5.7%).

BPC/Fashion EBITDAM (as % of NSV) expanded ~50/300bps YoY to 9/-6.2% respectively. We largely maintain our FY27/28 EBITDA estimates and DCF-based Target Price (TP) of INR 180/share (implying 62x Jun-27 EV/EBITDA). Our REDUCE rating stands as valuations seem full (at 70x pre-IND AS 116 EV/EBITDA).

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 Source : HDFC Securities Institutional Equities

 Full Report : https://www.hdfcsec.com/hsl.docs/HSIE%20Results%20Daily%20–%2013%20Aug%2025%20-%20HSIE-202508130652556341486.pdf?t=138202565458815