More Stories

Informist, Tuesday, May 19, 2026

By Shakshi Jain

NEW DELHI – FSN E-Commerce Ventures Ltd.'s consolidated bottom line for the March quarter is expected to more than treble year-on-year, driven by sustained growth in the beauty segment and lower losses in the fashion category. The company's operating margin for the quarter is likely to expand year-on-year, helped by operational efficiencies and a rise in marketing income, brokerages said.

FSN E-Commerce, which operates under the brand name Nykaa, is expected to report an over 217% year-on-year jump in its consolidated net profit for the March quarter at INR 643.38 million, according to the average of estimates from eight brokerages. However, this would mean a decline of over 19% on a sequential basis, excluding the exceptional item reported for the trailing quarter. The highest net profit estimate for the reporting quarter is INR 833 million by ICICI Securities Ltd. and the lowest is INR 535 million by Nuvama Wealth Management Ltd.

The company's consolidated top line for Jan-Mar is expected to rise nearly 27% on year and decline almost 9% sequentially to INR 26.17 billion, as per the average of estimates. The highest revenue estimate is INR 26.79 billion by ICICI Securities and the lowest is INR 25.86 billion by Kotak Securities Ltd.

In the year-ago quarter, FSN E-Commerce Ventures had reported a consolidated net profit of INR 202.80 million on revenue of INR 20.62 billion. For the December quarter, the company had reported a consolidated net profit of INR 633.1 million alongside a revenue of INR 28.73 billion. However, in the absence of the one-time cost of INR 163.6 million reported for the quarter, the company's bottom line would have been roughly INR 796.70 million, the change in tax notwithstanding.  

In a quarterly update last month, the company had said the year-on-year growth in its consolidated net revenue for the March quarter is expected to be in late twenties, which would be the highest growth in the past 12 quarters. "This strong performance came on the back of acceleration in fashion vertical along with sustained strong performance of beauty vertical," the company had said in a filing on the exchanges.

Among the segments, the company had said steady growth in its fashion vertical since the start of FY26 is expected to strengthen in the March quarter, with gross merchandise value growth expected in the late twenties and net sales value growth tracking ahead in the early forties. It attributed this performance to the enhanced momentum in its platform business, including funnel improvement and robust customer acquisition.

Further, a richer brand assortment such as the partnership with Nike "showed early traction and the Pink Love Sale delivered a solid outcome along with an uptick in marketing income," the company had said. As a result, the fashion vertical's net revenue growth improved to the late thirties, up sharply from the previous quarters, it had added.

FSN E-Commerce's beauty products vertical is expected to deliver net revenue growth of the late twenties, as per the filing.

The company added a record number of stores to its retail network in the March quarter with 26 new store openings and integrations with 11 Kiehl's stores. With these additions, the company's total store count stood at 313 as of Mar. 31.

The company had said there was no material impact from the developments in West Asia during the March quarter as its exposure to the market is currently below 1% of its overall revenue, given that the business is in its early stages.

MARGIN EXPANSION

The company's earnings before interest, tax, depreciation, and amortisation for the March quarter are expected to grow over 54% on year but decline almost 11% sequentially to INR 2.05 billion, according to the average of estimates. The EBITDA estimates are in a tight range--the highest is INR 2.19 billion by ICICI Securities and the lowest is INR 1.95 billion by Kotak Securities.

HDFC Securities Ltd. and JM Financial estimate a 100 basis-point year-on-year expansion in the company's consolidated EBITDA margin to 7.5% for the March quarter. Nuvama Wealth Management Ltd. and Kotak Securities estimate a slightly higher 110 basis-point year-on-year improvement on the metric. This would, however, mean a sequential decline from the consolidated operating margin of 8% reported for the December quarter.

For the full year 2025-26 (Apr-Mar), the company's net revenue is expected to rise to the upper end of mid-twenties, as per its business update. FSN E-Commerce Ventures will announce its quarterly and full year financial results on Thursday.

On Tuesday, shares of FSN E-Commerce ended 0.5% lower at INR 271.45 on the National Stock Exchange. The stock price is down 2% since the company reported its results for the December quarter. It is down 5% from its 52-week high of INR 285.60, recorded on Feb. 11.

Of the seven research reports on FSN E-Commerce available with Informist, five have a 'buy' recommendation on the stock and two have a 'sell' call. The average target price of the 'buy' recommendations is INR 302. This is over 11% higher than Tuesday's closing price.

Following are the Jan-Mar earnings estimates for FSN E-Commerce from eight brokerages in descending order of the estimate of net profit in INR billion:

End

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.