Nykaa Q1 profit jumps 243% to Rs 80 crore; shares slip nearly 3%
Nykaa reported Q1 FY2027 revenue of Rs 2,782 crore, up 29% year on year, while EBITDA rose 67.8% to Rs 236 crore. Despite broadly beating Bloomberg estimates, the stock fell as much as 2.6% in early trade.
What happened
Nykaa reported Q1 FY2027 net profit of Rs 80 crore, up 243%, as revenue rose 29% to Rs 2,782 crore and EBITDA expanded 68%. Shares fell nearly 3% despite
Key facts
- Q1 FY2027 consolidated net profit: Rs 80 crore, up 243.3% year-on-year from Rs 23.3 crore
- Revenue from operations: Rs 2,782 crore, up 29% year-on-year from Rs 2,155 crore
- EBITDA: Rs 236 crore, up 67.8% year-on-year from Rs 140.7 crore
- Stock fell as much as 2.6% to Rs 333.65; traded 2.35% lower at Rs 334.45 at 9:27 a.m.
- Bloomberg estimates: profit Rs 83 crore, revenue Rs 2,762 crore, EBITDA Rs 230 crore
- Jefferies target price: Rs 400, raised from Rs 350
- Macquarie target price: Rs 220
Why this matters
Nykaa’s strengthening profitability and scale make it a more credible partner or acquisition platform for beauty brands, adjacent lifestyle categories and omnichannel expansion opportunities.
What to watch
- Quarterly EBITDA margin versus the 67.8% EBITDA-growth pace.
- Beauty versus fashion revenue growth and fashion profitability trajectory.
- Marketing, fulfilment and employee-cost ratios as a share of revenue.
- Repeat purchase rates, active customers, average order value and conversion trends.
- Competitive discounting from marketplaces, brand-owned sites and quick-commerce platforms.
- Management commentary on FY2027 growth, margin and capital-allocation guidance.
- Emphasize EBITDA-margin durability, repeat-customer growth and contribution-margin trends in investor communication.
- Prioritize beauty-category inventory availability, exclusive launches and loyalty retention to protect high-margin demand.
- Keep fashion investment disciplined and demonstrate a clearer path to lower losses or positive contribution.
- Use improved cash generation selectively for fulfilment, technology and offline expansion rather than broad discounting.