Nykaa Q3 review: Analysts cut Ebitda estimates on weak discretionary demand

Nykaa stock outlook: Q3FY24 Ebitda missed forecasts as weak demand weighed across line items

Brokerages have maintained their ratings and target prices on FSN E-Commerce Ventures, the parent company of Nykaa, after the fashion and beauty online retailer posted in-line numbers during the October-December quarter (Q3) of financial year 2023-24 (FY24).

They have, however, cut earnings before interest, tax, depreciation, and amortisation (Ebitda) estimates after weak demand weighed across line items in Q3.

“While revenue growth was healthy at 22 per cent year-on-year (Y-o-Y), gross margins declined 90 basis points (bps), weighed by higher discounting in own brands and lower ad income. Contribution margin saw a sharper 320 bps Y-o-Y decline due to