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Informist, Tuesday, Feb. 3, 2026

By Shakshi Jain

NEW DELHI – FSN E-Commerce Ventures Ltd. is expected to post a handsome triple-digit year-on-year growth in its consolidated bottom line for the December quarter, driven by a higher operating margin in the larger beauty and personal care vertical. Analysts also expect the company to report a lower year-on-year loss for the smaller fashion segment, which will further help in lifting the bottom line for the reporting quarter.

The company's top line for the December quarter is expected to rise by healthy double digits on year, led by higher sales across both the beauty and fashion segments. If the results for the reporting quarter meet analysts' consensus estimates, it would be the company's fastest year-on-year top line growth in seven quarters while the bottom line growth would be slower than the trailing quarter.

FSN E-Commerce is expected to report an over 155% year-on-year jump in its consolidated bottom line for the December quarter to INR 666.83 million, according to the average of estimates from six brokerages. This would mean a growth of 88% on a sequential basis. The highest estimate for net profit is INR 778 million by JM Financial Institutional Securities Ltd. and the lowest is INR 537 million by ICICI Securities Ltd.

The company's consolidated top line for the reporting quarter is expected to rise nearly 27% on year and almost 23% sequentially to INR 28.76 billion. The highest estimate for revenue is INR 29.29 billion by Motilal Oswal Financial Services Ltd. and the lowest is INR 28.24 billion by Kotak Securities Ltd.

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

FSN E-Commerce's year-on-year consolidated net revenue growth for the December quarter is likely to be "at the upper end of mid-twenties," the company had said in an exchange filing earlier this month. It had stressed that this reflects a slight acceleration from the mid-twenties growth maintained over the past several quarters.

Among the segments, FSN E-Commerce's beauty products vertical is expected to deliver net sales value growth of 25-30% on year, the highest in the past six quarters, as per the company. "This stellar growth comes in a seasonally strong quarter, making it the largest quarter till date in terms of absolute scale. The growth was broad based across each of Nykaa's beauty businesses," the company had said.

The company estimates net sales in the fashion vertical to be higher by around 25% on year for the December quarter. "This was supported by strong performance of the core platform business, new brand additions and robust customer acquisition," the company had said.

In the year-ago quarter, revenues from the company's beauty segment had risen 27% on year to INR 2.06 billion and sales in the fashion segment had grown 21% to INR 1.99 billion.

MARGIN EXPANSION

The company's earnings before interest, tax, depreciation, and amortisation for the December quarter are expected to grow over 48% on year to INR 2.09 billion, according to the average of estimates. The EBITDA estimates are in a tight range – the highest is INR 2.15 billion by Nomura Financial Advisory and Securities (India) Pvt. Ltd. and the lowest is INR 1.95 billion by ICICI Securities.

Nuvama Wealth Management Ltd. and Kotak Securities estimate a 100 basis-point year-on-year expansion in the company's EBITDA margin to 7.2% for the December quarter. This would mean a sequential expansion of 40 bps. "Expect stable contribution margins for the beauty business & a 50 bp gains in the EBITDA margin of the BPC (beauty and personal care) vertical," brokerage Motilal Oswal said.

For the year-ago quarter, the company had reported a consolidated net profit of INR 261.20 million on revenues of INR 22.67 billion. In the trailing quarter, the company registered a consolidated net profit of INR 344.30 million on revenues of INR 23.46 billion. FSN E-Commerce will announce its December quarter earnings Thursday.

On Tuesday, shares of FSN E-Commerce ended 3.3% higher at INR 245.41 on the National Stock Exchange. The stock price is largely unchanged compared to the closing price on Nov. 7 when the company reported its results for the September quarter. It is down over 10% from its 52-week high of INR 273.22, recorded on Nov. 18.

Of the six research recommendations on FSN E-Commerce available with Informist, three have a 'buy' recommendation on the stock, while two have a 'hold' and one has a 'sell' recommendation. The average target price of the 'buy' recommendations is INR 290. This is over 18% higher than the current market price.

Following are the Oct-Dec earnings estimates for FSN E-Commerce from six brokerages in descending order of the estimate of net profit in INR million:

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Edited by Ashish Shirke

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