Nykaa Q3 Results Preview: PAT to more than double on strong BPC growth
Nykaa is expected to substantially improve its earnings in the third quarter, both sequentially and compared to the prior year.
Revenue from operations is projected to rise 27%, doubling year-on-year (YoY), according to the average estimate of four brokerages. Profit is likely to more than double from the previous year’s period.
The fashion business' GMV (gross merchandise value) growth has been impacted by the weakness in premium-wear demand. However, the BPC (Beauty and Personal Care) segment is expected to perform strongly, driven by customer acquisition and the festive period tailwinds. The overall GMV growth for the company is estimated at 27%.
Analysts will closely monitor management's commentary on industry trends in BPC/fashion, the competitive landscape, continued supply chain investments, and international expansion plans.
JM Financial
Nykaa, in its Q3FY25 revenue update, reported low-thirties YoY growth in the BPC segment while highlighting that eB2B now accounts for 8% of BPC GMV. We forecast core BPC GMV to grow approximately 27% YoY, assuming eB2B + Nykaa Man GMV grows at 66%. GMV-NSV conversion is expected to improve from 56.3% in Q2 to 57.3% this quarter, although it remains lower by 100bps on a YoY basis.
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