FSN E-Commerce Ventures Limited Earnings Summary — Q4 FY2026
Nykaa Achieves Record Quarterly Profit with Robust Margin Expansion
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 5.1% sequentially in Q1 FY2027.
- Revenue of ₹2,782 Cr is 29.1% higher year-on-year.
- Revenue has compounded at 25.5% annualised over the last 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹80 Cr is 243.1% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 196.6% annualised across the period.
- Operating margin stands at 8.5% in Q1 FY2027.
- Operating margin expanded by 195 bps year-on-year.
- Over the last two years operating margin has expanded by 298 bps.
- PBT margin is 4.6%.
- Expense growth of 26.4% remained below revenue growth of 29.1%.
- Operating profit of ₹236 Cr is 67.8% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 74/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 2,782 | 2,648 | 2,873 | 2,346 | 2,155 | 2,062 | 2,267 | 1,875 | 1,746 | 1,668 |
| Expenses | Improving | 2,546 | 2,425 | 2,644 | 2,187 | 2,014 | 1,928 | 2,126 | 1,771 | 1,650 | 1,575 |
| Operating Profit | Improving | 236 | 223 | 230 | 159 | 141 | 133 | 141 | 104 | 96 | 93 |
| Operating Margin | Improving | 8.5% | 8.4% | 8.0% | 6.8% | 6.5% | 6.5% | 6.2% | 5.5% | 5.5% | 5.6% |
| Other Income | Volatile | 9 | 9 | -10 | 7 | 9 | 9 | 6 | 5 | 7 | 7 |
| Interest | Improving | 27 | 26 | 29 | 31 | 30 | 30 | 32 | 24 | 21 | 21 |
| Depreciation | Improving | 89 | 84 | 81 | 79 | 76 | 73 | 70 | 64 | 60 | 60 |
| Profit Before Tax | Strong Uptrend | 129 | 122 | 110 | 55 | 44 | 40 | 45 | 21 | 22 | 20 |
| Tax | Accelerating | 49 | 43 | 42 | 22 | 19 | 21 | 18 | 8 | 8 | 10 |
| Net Profit | Strong Uptrend | 80 | 78 | 63 | 34 | 23 | 20 | 26 | 10 | 10 | 7 |
| Net Margin | Improving | 2.9% | 3.0% | 2.2% | 1.5% | 1.1% | 1.0% | 1.1% | 0.5% | 0.6% | 0.4% |
Key Takeaways
- Nykaa delivered its highest-ever quarterly net profit of ₹79 crore in Q4 FY2026.
- Operating margins reached a peak of 8%, demonstrating significant operating leverage as the business scales.
- Year-on-year revenue grew by 28.4%, though sequential revenue saw a seasonal decline of 7.8% from the high-base December quarter.
- Annual Profit Before Tax (PBT) showed a sharp jump to ₹122 crore for the quarter, reflecting improved unit economics.
- The company has successfully transitioned to an emerging compounder with a 3-year profit CAGR of 122%.
- Return on Equity (ROE) has notably improved to 15% for the full year 2026, up from 6% in the prior year.
- Borrowings have stabilized at ₹1,238 crore, showing a slight reduction from the previous year's peak.
Management Guidance
Management is targeting a 2030 GMV of $5 billion, focusing on maintaining group-level profitability while expanding the fashion segment and owned brand portfolio.
Sentiment Shift
Improving
The transition from hit-or-miss profitability to consistent, high-margin growth indicates a maturing business model with strong scaling capabilities.
Outlook
The outlook remains strong as the company dominates the specialty beauty market. The focus on AI-shopping tools and omnichannel expansion with 265 stores provides a competitive moat against global platforms.
From the Annual Report (Key Quotes)
“Successfully transitioned from a high-growth startup to a scale-driven profitable omnichannel retailer.”
“Balanced expansion into the lower-margin Fashion segment while maintaining Group-level profitability.”
“Nykaa achieved profitability relatively early and has maintained transparency in reporting segments.”
Official Quarterly Documents
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This summary is AI-generated from FSN E-Commerce Ventures Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.