Q2 FY27 results analysis · November 04, 2026
FSN E-Commerce Q2 FY27 Results Analysis: PAT Triples, Festive Inventory Build Drains Cash (NYKAA)
+206.8%PAT year on year, Rs. 101.19 Cr
Source: Quarterly results filing (BSE)
Quick summary
FSN E-Commerce Ventures Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 3,006.04 Cr (+28.14% YoY) and PAT growth of +206.82% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 04, 2026 |
|---|---|
| Revenue (Q2) | Rs. 3,006.04 Cr (+28.14% YoY) |
| PAT (Q2) | Rs. 101.19 Cr (+206.82% YoY) |
| EBITDA margin | 8.73% (+196 bps YoY) |
| EPS (Q2) | Rs. 0.35 (+191.67% YoY) |
Quarter Snapshot
Nykaa delivered 28.14% YoY revenue growth within its own 'late twenties' guidance band, with EBITDA margin expanding ~200 bps YoY to 8.73% and PAT tripling to Rs.101.19 Cr on nil exceptionals. The principal watch item is negative H1 operating cash flow of Rs.(28.56) Cr from a deliberate Rs.564.74 Cr festive inventory build funded by borrowings, which Q3 demand must absorb. Beauty margin gains and a narrowing Fashion loss support the FY30 4-5x EBITDA trajectory, though that target remains too early to score.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue growth | "net revenue 'late twenties (%)' YoY… likely lands in-line" | +28.14% YoY | Played out |
| Consolidated margin | "flat to compressing… whether Q2 holds near that [8.48%] level" | 8.73% EBITDA margin, +25 bps QoQ, ~200 bps YoY — expanded — favorably | Contradicted |
| Fashion third positive EBITDA quarter | "whether Fashion posts a third consecutive EBITDA-positive quarter" | Filing basis still negative ((7.65) Cr); company's % of NSV basis not derivable | Partially |
| Beauty ≥10% of NSV EBITDA | "whether Beauty holds ≥10% of NSV" | NSV not in filing; Beauty result margin up 173 bps YoY on revenue | Not observable |
| Aminu/Earth Rhythm first consolidation | "will flow through for the first time" | Goodwill +26.02 provisional; Rs.21.70 Cr consideration paid; NCI recognized | Played out |
| Festive shift into Q3 | management-flagged shift | No visible Q2 revenue drag; Q3 to show | Partially |
| External drivers (UPI, GST ~15% YoY, WCI ~$4,400s, USD/INR −1.2% Jul–Sep, q-com beauty ~160% YoY per pre-call note, web-sourced, dated) | supportive flow, cost-pressure backdrop | Filing silent — context only | Not observable |
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Q2 net revenue growth "late twenties (%)" | Company business update, Oct 4, 2026 | +28.14% YoY | Met |
| 500 stores in 3-4 years, via 50-60/yr | Q4 FY26 earnings call (May 2026); 338 stores per Oct 4, 2026 update | Store count not disclosed in this filing — on last disclosed count | On Track |
| EBITDA 4-5x FY26's ~Rs.750 Cr; margin early-to-mid teens | Q4 FY26 call / AGM (Aug 25, 2026) | Q2 EBITDA Rs.262.56 Cr, +66.27% YoY, 8.73% margin | Too Early |
| GMV & revenue 2.5-3x FY26 | AGM, Aug 25, 2026 | Revenue +28.14% YoY | Too Early |
| "Growth and EBITDA margins highest in last 12 quarters" (Q1 FY27 call) | Q1 FY27 earnings call, Aug 4, 2026 | Q2 EBITDA margin 8.73% > Q1's 8.48% — the streak extends | Confirmed |
| Festive season shifts from Q2 into Q3 FY27 | Business update, Oct 4, 2026 | Q2 revenue +28.14% ≈ H1's +28.6% — no visible Q2 revenue drag; effect, if any, shows in Q3 | Too Early |
| Fashion turnaround "structural" | Q2 FY26 call and subsequent calls | Fashion result improved Rs.13.70 YoY and revenue +42.9% YoY, but still (7.65) on the filing basis | Partially confirmed |
| Beauty margins "can sustainably improve" | Q3 FY26 earnings call | Beauty result margin 6.67% vs 4.94% YoY | Confirmed |
Key Investment Insights
Key Positives
- Revenue grew 28.14% YoY to Rs.3,006.04 Cr, within management's 'late twenties (%)' guidance band from the October 4, 2026 update
- EBITDA (company definition) grew 66.27% YoY to Rs.262.56 Cr with margin at 8.73%, up ~200 bps YoY and 25 bps QoQ
- PAT grew 206.82% YoY to Rs.101.19 Cr; EPS rose to Rs.0.35 from Rs.0.12; no exceptional items this quarter
- Beauty segment revenue grew 26.64% YoY with segment-result margin improving to 6.67% from 4.94% a year ago
- Fashion revenue grew 42.91% YoY with segment loss narrowing to Rs.(7.65) Cr from Rs.(21.35) Cr YoY
- Finance costs declined 3.02% YoY following full redemption of Nykaa E-Retail's NCDs on August 12, 2026
- H1 FY27 EBITDA of Rs.498.61 Cr vs Rs.298.59 Cr in H1 FY26, consistent with the FY30 target of 4-5x FY26's ~Rs.752 Cr EBITDA
Risk Factors
- H1 FY27 operating cash flow was negative Rs.(28.56) Cr vs +Rs.129.29 Cr in H1 FY26 due to a Rs.564.74 Cr inventory build; FCF was Rs.(101.89) Cr
- Total borrowings rose to Rs.990.65 Cr from Rs.747.21 Cr at March 2026 to fund the festive inventory build
- Fashion segment remains loss-making on the filing's segment-result basis at Rs.(7.65) Cr despite 42.91% YoY revenue growth
- Effective tax rate decline to 31.86% from 40.45% was driven by a deferred-tax credit while the cash tax rate was roughly flat at 39.88%
- Q3 FY27 must absorb the Rs.2,209.66 Cr inventory (up 34.56% vs March 2026) into festive demand
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.