NYKAA Q4 FY26 Results Analysis: PAT Jumps 313%, EBITDA Margin Expands 196 bps

NYKAA's Q4 FY26 numbers came in strong, with revenue of Rs. 2,648.17 Cr (+28.40% YoY) and PAT growth of +313.40% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

NYKAA delivered strong Q4 with 28.4% revenue growth (in-line with 'late twenties' guidance) and 313% PAT growth driven by operating leverage and margin expansion (EBITDA margin +196 bps YoY to 8.43%). The turnaround in Fashion segment (loss narrowed 77%) and robust cash generation (FCF Rs.490 cr, Debt/Equity improved to 0.50x) are positives, though Fashion missed breakeven target and International losses deepened. Results confirm execution quality with multiple metrics meeting or exceeding management's annual guidance.

Key Investment Insights

Key Positives

• Revenue grew 28.4% YoY to Rs.2,648.17 cr, in line with 'late twenties' guidance
• PAT surged 313.4% YoY to Rs.78.75 cr in Q4; FY26 PAT up 176.7% to Rs.203.94 cr
• EBITDA margin expanded 196 bps YoY to 8.43% in Q4; FY26 margin at 7.33% (+137 bps)
• Total debt reduced by Rs.214.15 cr; Debt/Equity improved from 0.72x to 0.50x
• Fashion loss narrowed 77.3% YoY (Rs.36.44 cr to Rs.8.26 cr), showing turnaround progress
• Operating cash flow 3.16x PAT at Rs.644.30 cr; FCF strong at Rs.490.43 cr
• Store count reached 313 (37 new stores in Q4), on track for 500+ stores by FY30

Risk Factors

• Fashion segment missed FY26 breakeven target; EBIT margin still at -9.1% vs guidance of breakeven
• International segment loss deepened to Rs.43.78 cr (vs Rs.29.09 cr FY25) with unclear path to profitability
• Inventory build of Rs.224.62 cr in FY26 represents significant working capital deployment
• Sequential revenue decline of 7.8% QoQ in Q4 typical but需要注意 seasonal weakness