FSN E-Commerce Ventures Ltd: 4QF26 Beat: Good delivery on top line and margins

Research evidence excerpt

FSN E-Commerce Ventures Ltd: 4QF26 Beat: Good delivery on top line and margins

Update

May 21, 2026 04:25 PM GMT

Morgan Stanley India Company Private Limited+MFSN E-Commerce Ventures Ltd | Asia Pacific Archana Menon, CFA

Equity Analyst

4QF26 Beat: Good delivery on Archana.Menon@morganstanley.comShravan Vohra +91 22 6118-2215

Shravan.Vohra@morganstanley.com +91 22 6118-2039

top line and margins Gaurav Varma

Research Associate

Gaurav.Varma@morganstanley.com +91 22 6118-1033

Reaction to earnings

FSN E-Commerce Ventures Ltd (FSNE.NS, NYKAA IS)

Unchanged Modest upside Largely unchanged

India Consumer | India

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Stock Rating Overweight

Source: Company data, Morgan Stanley Research Industry View In-Line

Price target Rs286.00

Shr price, close (May 21, 2026) Rs274.50

Key Takeaways 52-WeekSh out, dil,Rangecurr (mn) Rs285.60-191.162,847

Mkt cap, curr (mn) Rs781,588

Strong beat on both top line and margins. EV, curr (mn) Rs789,367

Avg daily trading value (mn) Rs1,750

EBITDA margin improved 195bps YoY to 8.4% (MSe 7.9%) with Beauty business

margin improving 71bps YoY and the Fashion business breaking even.

April and May have been good for the company, which is seeing the benefits of AI

in both the top line and costs.

For the Beauty business customer acquisition remains the key focus area along

with driving higher frequency of purchase.

Fashion business focus is on onboarding the right kind of customers and brands.

Marketing efficiency continues to improve for the business.

4Q: GMV was up 28%, while revenue and EBITDA were up 28% and 67% YoY,

respectively, 3% and 9% above our estimates. Top-line trends were known.

Beauty: GMV was up 27% YoY, with revenue growth at 27% YoY. EBITDA margin (as