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Informist, Tuesday, Oct. 28, 2025

By Shakshi Jain

MUMBAI – FSN E-Commerce Ventures Ltd. is expected to post an exponential triple-digit year-on-year growth in its bottom line for the September quarter, helped by operating leverage in the beauty and personal care segment. Lower losses in the company's fashion segment are also likely to help the expected rise in the company's net profit for the quarter, according to Kotak Securities Ltd.

The company's top line for the reporting quarter is expected to rise by healthy double digits on year, driven by higher volumes amid an early start to the festival season this year. 

FSN E-Commerce is expected to report a whopping 280% year-on-year jump in its consolidated bottom line for the September quarter at INR 381.50 million, according to the average of estimates from four brokerages. This would mean growth of nearly 64% on a sequential basis. The highest estimate for net profit is INR 447 million by JM Financial Institutional Securities Ltd. and the lowest is INR 304 million by Nuvama Wealth Management Ltd.

The company's consolidated top line for the reporting quarter is expected to rise 25% on year and 9% sequentially to INR 23.48 billion. The highest estimate for revenue is INR 23.81 billion by Nuvama and the lowest is INR 23.18 billion by ICICI Securities Ltd.

The digital-first retail company offers beauty, wellness, and fashion products under the brand name Nykaa.

FSN E-commerce's year-on-year consolidated net revenue growth for the September quarter is likely to be around 25%, the company had said in a quarterly business update earlier this month. According to the company, the year-on-year growth in its consolidated gross merchandise value for Jul-Sept is likely to be around 30%, compared to around 25% growth it had reported in the last few quarters. The beauty vertical's net revenue as well as its net sales value are expected to grow around 25% on year for the reporting quarter.

FSN E-commerce had also said the fashion vertical's net sales value is expected to grow 25-30% on the back of "strong traction in core platform business, which was led by expanding brand assortment and robust customer acquisition." The vertical's net revenue is expected to have grown 20-25% in the reporting quarter, up from 10-15% in the last few quarters. The company had said the fashion vertical's net revenue growth is lower than its net sales value growth due to a lag in advertising and marketing income.

MARGIN EXPANSION

The company's earnings before interest, tax, depreciation, and amortisation for the September quarter are likely to be INR 1.62 billion, according to the average of estimates from four brokerages. The EBITDA estimates are in a narrow range – the lowest is INR 1.54 billion by ICICI Securities and the highest is INR 1.68 billion by Kotak Securities Ltd. In the year-ago quarter, the company's consolidated EBITDA was INR 1.04 billion.

"We expect EBITDA margin of 7.2%, implying margin expansion of 165 bps (basis points) yoy (year-on-year)," Kotak Securities said in a report.

For the year-ago quarter, FSN E-commerce had reported a consolidated net profit of INR 100.4 million on revenue of INR 18.75 billion. The company is yet to declare a date for the disclosure of its September quarter results.

On Monday, shares of FSN E-Commerce ended at INR 255.14 on the National Stock Exchange, up 1.8%. The stock is up nearly 25% since the company reported its results for the June quarter on Aug. 12. 

Of the eight research recommendations on the stock available with Informist, five have a "buy" rating on FSN E-Commerce while one has a "hold" rating and two have a "sell" recommendation. The average target price of the "buy" recommendations is INR 228 and that of the "sell" calls is INR 183.

Following are the Jul-Sept earnings estimates for FSN E-commerce from four brokerages in descending order of the estimate of net profit in INR million:

End

Edited by Avishek Dutta

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