Nykaa-parent FSN E-Commerce Ventures Ltd.'s stock dropped 2.6% on Wednesday, despite the e-commerce company posting an ovcr threefold surge in its net profit for the first quarter of fiscal 2027.
The stock went as low as Rs 333.65. As of 9:27 a.m., Nykaa pared some losses to trade 2.35% lower at Rs 334.45 on the NSE, as against a marginal rise in the benchmark Nifty index.
Nykaa reported a sharp rise in first-quarter earnings supported by robust revenue growth and strong margin expansion. On a consolidated basis, Nykaa reported a net profit of Rs 80 crore for the quarter, up 243.3% from Rs 23.3 crore in the corresponding period last year. The profit was marginally below Bloomberg's estimate of Rs 83 crore.
Revenue from operations rose 29% year-on-year to Rs 2,782 crore, slightly ahead of analysts' estimate of Rs 2,762 crore, compared with Rs 2,155 crore in the year-ago quarter.
Operating performance remained strong during the quarter. Ebitda increased 67.8% year-on-year to Rs 236 crore from Rs 140.7 crore, exceeding the Street estimate of Rs 230 crore.
ALSO READ: Nykaa Q1 Results: Profit Soars Nearly 3.5x As Margins Expand, Revenue Jumps 29%
Nykaa Q1: Brokerages Split
Despite blockbuster profitability, Nykaa received mixed reactions and projections from global brokerages Jefferies and Macquarie after its first quarter results. The former has raised the target price to Rs 400 from Rs 350, while maintaining a 'buy' rating, after its "beautiful" Q1.
On the other hand, Macquarie has maintained an 'underperform' rating on the stock, with a price target of Rs 220, which is noticeably lower than the current market price of Rs 342.50.
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