Nykaa (FSN E-Commerce Ventures Ltd) is expected to deliver robust financial results for the July-September quarter, according to analyst projections. The beauty and fashion e-tailer's growth trajectory is anticipated to be driven by festive demand and a strong performance in its core beauty segment.

Projected Financial Performance

Analysts estimate that Nykaa will see a year-on-year revenue growth of 25-27% for the second quarter of the fiscal year. Here's a breakdown of the key projections:

Segment-wise Performance

Beauty and Personal Care (BPC)

The BPC segment, which is Nykaa's core business, is expected to be the primary growth driver. Nuvama projects a 32% year-on-year increase in GMV for this segment, while Kotak Equities estimates a 26% growth.

Fashion Segment

The fashion vertical is also anticipated to contribute significantly to Nykaa's growth. Nuvama forecasts a 25% year-on-year growth for this segment, although Kotak Equities provides a more conservative estimate of 14% growth.

Factors Contributing to Growth

Several factors are believed to be contributing to Nykaa's projected strong performance:

1. Festive demand
2. Hybrid marketplace model
3. Strategic brand partnerships
4. Improved inventory control
5. Operating leverage
6. Reduced losses in the fashion segment

Bottom Line

The projected financial results suggest a positive outlook for Nykaa, with significant improvements expected across various financial metrics. The substantial year-on-year jump in net profit, as projected by Kotak Equities, particularly stands out as an indicator of the company's improving profitability.

As Nykaa continues to leverage its strong position in the beauty and personal care market while expanding its fashion segment, investors and market watchers will be keen to see if these projections materialize when the company releases its official Q2 results.

Nykaa , officially known as FSN E-Commerce Ventures Limited, has reported strong growth in the second quarter, with its Gross Merchandise Value (GMV) expected to reach close to 30%. This marks a significant improvement from the mid-20s percentage range recorded in recent quarters, signaling accelerated momentum for the e-commerce giant.

Key Performance Highlights

Segment-wise Performance

Beauty Vertical

Nykaa's Beauty vertical continues to demonstrate sustained growth momentum, marking its 10th consecutive quarter of robust performance. The segment is expected to deliver Net Sales Value (NSV) and Net Revenue growth in the mid-twenties range.

The House of Nykaa brands, including acquired brands like Dot & Key and homegrown labels such as Kay Beauty and Nykaa Cosmetics, have shown rapid growth, contributing significantly to the vertical's success.

Fashion Vertical

The Fashion vertical has shown renewed vigor, with NSV growth expected in the higher mid-twenties. This strong performance is attributed to:

• Expanding brand assortment
• Robust customer acquisition in the core platform business

While the Net Revenue growth for the Fashion vertical is projected to be in the low twenties, it marks an improvement from the low to mid-teens growth seen in previous quarters. The company noted that the lower Net Revenue growth compared to NSV growth is due to a lag in advertising and marketing income.

Early Festive Season Impact

The company attributes part of its strong performance to an early start to the festive season, which has positively impacted consumer demand and spending.

GST Reforms and Future Outlook

Nykaa welcomed the recent GST reforms announced by the government, viewing them as a positive step towards stimulating demand. The company expects these reforms to increase disposable income and drive long-term growth across various consumer and discretionary categories.

About Nykaa

Founded in 2012, Nykaa has evolved from a digital-first beauty company to a multi-vertical e-commerce platform, expanding into fashion and B2B segments. The company serves 45 million customers through its online platforms and 250 offline beauty destinations.

Nykaa continues to strengthen its position in the market through its house of brands strategy, international brand partnerships, and customer-centric approach. The company's success has been recognized globally, with accolades including a place in the TIME100 Most Influential Companies List.

Note: The financial figures mentioned are provisional and subject to audit by the company's statutory auditors.