Nykaa Q2 FY27 profit up 207% to Rs 101 crore

NYKAA FSN E-Commerce Ventures Limited, which runs Nykaa, reported Q2 FY27 consolidated profit of Rs 101 crore, up 207 percent, on revenue up 28 percent to Rs 3,006 crore. Q2 FY27 numbers (consolidated): Revenue from operations: Rs 3,006 crore, up 28 percent YoY EBITDA: Rs 263 crore, up 65 percent YoY; margin 8.7 percent vs 6.8 percent PAT: Rs 101 crore, up 207 percent from about Rs 33 crore GMV: Rs 6,151 crore, up 30 percent Why it matters: the margin expansion is the real story. Beauty EBITDA rose 51 percent, and Fashion moved to a 0.2 percent EBITDA margin on NSV from minus 3.5 percent a year earlier. The company also took an 82 percent stake in Simply Nam, a premium makeup brand. Terms were not disclosed. Nykaa [NYKAA][***** traded at Rs 357.12 at 1:10 PM IST on 13 November on StockGro, close to its 52-week high of Rs 360.01. It is up 8.24 percent over one month and 47.25 percent over one year. P/E is 316.04 against a sector P/E of 93.20, and P/B is 73.03 against 8.92. My view: hold, not a fresh entry. The business is improving fast, but the price is far ahead of earnings. At 316 times trailing earnings and 73 times book, the stock is paying for years of margin expansion, and one quarter of it does not prove the trend. Holders can keep the position. Fresh money should wait for the Q3 FY27 result (date not confirmed) showing EBITDA margin above 8.7 percent and the Fashion loss still narrowing. Invalidation: a close below Rs 331, the support another analyst cites (Bala Prasad Pal, 7 November). What would change my mind: two quarters of margin expansion, not one. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.