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Nykaa expects ~30% GMV growth in Q2 update; DMart revenue per store dips 1% and shares fall over 5%

Our read

Nykaa keeps its ~30% GMV growth premium while DMart's per-store recovery (-4% to -1%) continues but stays unconvincing until it turns positive.

For operators

Nykaa's roughly 30% GMV growth shows beauty demand is still compounding online, while DMart's revenue per store down 1% and flat revenue per sq ft show that adding stores is not lifting productivity, so operators should put more weight on throughput per store and like-for-like performance than on footprint growth.

Watch

Nykaa's full Q2 results showing GMV growth near the ~30% indicated and margins holding

The report

Nykaa expects consolidated GMV to grow around 30% in its pre-quarter update, while DMart's annualized revenue per store declined 1% YoY in Q2, better than the 4% dip in Q1. Nykaa shares rose 4% and DMart fell over 5%.

Newer report on another story , , CNBC-TV18 : Elara's Karan Taurani backs Nykaa, Trent and United Spirits as GST cuts lift discretionary demand

07:30 IST · 10 moves · what each means · free

Reported figures

From the report. Source details below

DMart annualized revenue per sq ft YoY: flat

What to watch next

  • DMart's Q3 update showing revenue per store at or above flat, against -1% in Q2 and -4% in Q1
  • Revenue per sq ft moving off flat at DMart
  • Whether DMart's over-5% fall holds or reverses over the following sessions
  • Whether Nykaa's ~4% intraday gain holds after the detailed results

Likely next moves

Our read of what comes next — analysis, not reported by the source.

  • Nykaa is likely to publish full Q2 results that back the ~30% consolidated GMV growth, with management stressing momentum across its beauty business.
  • DMart (Avenue Supermart) is likely to point to the smaller per-store decline (-1% versus -4% in Q1) as evidence that the slowdown is easing, while flat revenue per sq ft tempers that message.
  • Brokerages are likely to split, raising conviction on Nykaa after the GMV update and cutting or holding DMart estimates after the per-store softness.
  • Quick-commerce and online grocery rivals may keep pressing DMart's value-grocery base, which would keep per-store growth in focus.
  • Institutional investors may rotate toward Nykaa's growth and away from DMart's slower per-store trajectory in the near term.

The source

Source Read the source at Financial Express

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