Earnings Outlook
FSN E-Comm Q1 net seen up exponentially driven by volumes
This story was originally published at 11:08 IST on 12 August 2025
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By Akshat Saksena
MUMBAI – FSN E-Commerce Ventures Ltd. is expected to post an exponential triple-digit growth in its consolidated net profit for the June quarter. The company's focus on customer acquisition and the business-to-business venture in its beauty vertical will help the company post good revenue numbers. The rising revenue growth is expected to help the vertical break even in 2025-26 (Apr-Mar).
FSN E-Commerce is expected to post a consolidated net profit of INR 258.40 million, up a whopping 168% on year and over 27% on quarter, according to the average of the estimates of five brokerages. The highest estimate for the company's net profit is INR 297 million from Nuvama Wealth Management Ltd. and the lowest estimate is INR 200 million from HDFC Securities Ltd.
The company is expected to post consolidated revenue of INR 21.75 billion, up 25% on year and 5.5% on quarter, according to the average of estimates from five brokerages. The highest estimate for the company's revenue is INR 22.04 billion from Kotak Institutional Equities and the lowest estimate is INR 21.65 billion from JM Financial Institutional Securities Pvt. Ltd.
New-age businesses such as Nykaa - which is the company's brand - are expected to sustain strong growth by focussing on customer acquisition, according to HDFC Securities. As per the company's revenue update, its revenue is expected to grow between 23% and 25% to INR 21.70 billion for the June quarter, HDFC Securities said. The company's revenue growth is likely to be driven by its beauty and personal care segment and the fashion segment, according to brokerages tracking the firm.
The beauty and personal care segment is expected to post 18% growth on year in its revenue and 25% growth on year in gross merchandise value. The fashion segment is expected to post 19% growth on year in revenue and 20% growth on year in its gross merchandise value, Kotak said. HDFC Securities expects the gross merchandise value for the beauty and personal care and the fashion segment to grow by around 27% and 25%, respectively, on year. The company's gross merchandise value was INR 25.43 billion for its beauty segment and INR 7.74 billion for its fashion segment for the June quarter last year.
The company's beauty and personal care vertical is helped by growth in its core segment as well as the business-to-business sub segment, which is experiencing faster growth, Kotak said. The fashion segment's growth seems to have improved and is on the path of recovery. If the growth of the vertical continues to improve, the segment is expected to break even in FY26, which is in line with the expectations of the company's management, JM Financial said.
The company faced some loss of business because of geopolitical tensions that led to softer sentiment for the company's flagship sale during the Apr-Jun quarter, according to the revenue update by the company. The company expects to post higher mid-twenties growth in its gross merchandise value for its beauty segment despite the disruption.
The company's consolidated earnings before interest, tax, depreciation, and amortization are expected to be INR 1.37 billion, according to an average of estimates from five brokerages. The highest estimate for the company's EBITDA is INR 1.44 billion from Kotak and the lowest is INR 1.20 billion from HDFC Securities. The company is expected to expand its consolidated EBITDA margin by 100 bps on year to 6.5%, led by positive operating leverage for its beauty segment and lower losses in its fashion segment, Kotak said.
The company will announce its June quarter earnings Tuesday. Investors are likely to focus on the company's guidance for its fashion segment and the profitability of its electronic business-to-business segment along with monitoring the competitive landscape shift, according to HDFC Securities.
At 1035 IST, shares of the company traded at INR 203.54 on the National Stock Exchange, unchanged from Monday. The stock is up 4.6% since the company announced its March quarter earnings. Of the eight brokerage reports on the company available with Informist, five have a 'buy' or equivalent rating on the stock with an average target price of INR 228. Two brokerages have a 'sell' rating and one has a 'hold' rating on the stock.
Following are the June quarter earnings estimates for FSN E-Commerce Ventures, in INR million, based on reports from five brokerages in the descending order of net profit estimates:
Brokerage | Revenue | Net profit | EBITDA |
Nuvama Wealth Management Ltd. | 21,652.00 | 297.00 | 1,429.00 |
Dolat Capital Market Pvt. Ltd. | 21,709.00 | 287.00 | 1,416.00 |
Kotak Institutional Equities | 22,035.00 | 270.00 | 1,435.00 |
JM Financial Institutional Securities Pvt. Ltd. | 21,648.00 | 238.00 | 1,361.00 |
HDFC Securities Ltd. | 21,700.00 | 200.00 | 1,200.00 |
Average | 21,748.80 | 258.40 | 1,368.20 |
End
Edited by Avishek Dutta
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