Altman Z″
Needs withheld for this sector: Loss-making growth platforms sit in the distress zone by construction..
A plain-language read of the business, how it actually earns, where the edge is, and the economics of every reported segment — taken from the annual report and investor presentation, not a one-line industry label.
How to read this: Price shows the closing price with its 50-day (amber) and 200-day (grey) averages; bars at the bottom are daily volume, green on up days and red on down days; dashed lines mark the 52-week high and low. vs Nifty 50 starts both at 100 so you can see which did better over the period. P/E shows what the market paid for each rupee of profit, inside the band it usually trades in. Drawdown shows how far below its best price the share has been. Hover anywhere for the numbers on that day.
The three to six things that actually matter about this company, each with the exact filing and note it came from — never a fact without the context that makes it meaningful.
What the numbers mean when read together — computed from the filings, not a score.
Operating cash is 316% of trailing profit — the earnings are converting to real cash, not just accruals.
Why this reading: A positive signal: cash conversion at or above ~0.9 means reported profit is showing up as actual cash.
Operating cash ₹644 cr against trailing net profit ₹204 cr. Consistent conversion near or above 1.0 is a hallmark of genuine earnings.
Both revenue and profit grew over the last year (27.4% and 217.1%) — growth is translating to the bottom line.
Why this reading: A positive signal in the numbers, shown for balance alongside the concerns.
Trailing revenue ₹10,649 cr, trailing profit ₹260 cr. Profit growing at least as fast as revenue indicates operating leverage or pricing power.
Free cash flow swings between positive and negative across the cycle.
Why this reading: Surfaced for context, not as a concern — it only becomes meaningful if it persists or pairs with other signals.
Latest ₹493 cr, negative in 6 of 9 years.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs withheld for this sector: Loss-making growth platforms sit in the distress zone by construction..
Needs withheld for this sector: Rewards current profitability the model has not reached yet..
Needs trade receivables, current assets, other expenses.
Accruals are -10.2% of assets. Free cash flow negative in 6 of 9 years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
Revenue grew faster than the capital behind it, which is what operating leverage looks like: the existing asset base is working harder.
cumulative operating cash flow ÷ cumulative net profit
₹577 cr ÷ ₹371 cr, over 9 years
1.56×
Above 1.0 means cash exceeds reported profit — the healthier reading.(net profit − operating cash flow) ÷ average total assets
(₹204 − ₹644) cr ÷ average assets
-10.2%
Negative means cash exceeded profit — the healthier reading. Positive above ~10% is where accruals start to dominate earnings.net margin × asset turnover × leverage
2.0% × 2.17 × 3.21
14.2%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹448 cr ÷ ₹118 cr
3.80×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹1,238 cr ÷ ₹1,438 cr
0.86×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +39% vs revenue +95%, FY2023 to FY2026
-56pp gap
Money going in far faster than revenue coming out. For an incubator this is expected — the test is whether it eventually converts.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
The growth rate that makes today's market value equal the discounted cash flows, at a 11.5% discount rate and 4.0% terminal growth. Not a forecast — the arithmetic of what is already in the price. Compare it with what the business has actually delivered.
Reverse DCF — the growth already in the price — A standard inversion of discounted cash flow, used to avoid the forecasting problem entirely.
Instead of forecasting cash flows and deriving a value, it takes today's market value as given and solves for the growth rate that would justify it. The output is not a view — it is the arithmetic of what the market is currently assuming.
How to read itCompare it with what the business has actually delivered. A price implying 30% a year against a decade of 15% is a demanding assumption; the reverse is a modest one.
Where it failsUseless when free cash flow is negative or unusually depressed, which is common mid-capex. Highly sensitive to the discount rate — a point either way moves the answer materially.
Against a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%.
Cost of debt — Interest expense over average borrowings — the effective rate the company actually pays.
What the lenders charge, which is a market verdict on credit quality that no rating agency delay affects.
How to read itAgainst a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%. Read the direction over years as much as the level.
Where it failsUnderstated where a large share of interest is capitalised into projects under construction. Not meaningful for lenders, where interest is cost of goods.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter held steady from 52.12% to 52.08% across these quarters.
FII rose from 12.54% to 13.73% across these quarters.
MF trimmed from 19.14% to 18.91% across these quarters.
Other trimmed from 16.20% to 15.28% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|
| Debtor days
How long customers take to pay | 19 | 20 | 11 | 9 | 12 | 14 | 11 | 11 |
| Inventory days
How long stock sits before it sells | 135 | 160 | 122 | 150 | 128 | 119 | 116 | 109 |
| Payable days
How long the company takes to pay suppliers | 100 | 113 | 77 | 62 | 34 | 39 | 52 | 49 |
| Cash conversion cycle
Debtor + inventory − payable days | 54 | 68 | 56 | 97 | 106 | 94 | 75 | 71 |
| Working capital days | -16 | -5 | 3 | 67 | 40 | 10 | 14 | 4 |
| ROCE %
Return on capital employed | -1.0% | 5.0% | 13.0% | 7.0% | 6.0% | 7.0% | 10.0% | 17.0% |
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| GOV or GMV (₹ cr) | 6,151 | — | 4,727 |
| Take rate | 48.87% | — | — |
| Contribution margin | 20.6% | 21.2% | 19.6% |
| Adjusted EBITDA (₹ cr) | 263 | 236 | 159 |
| ESOP cost (₹ cr) | 12.61 | — | — |
| Customers or MTU (lakh) | 65 | — | — |
| Cash and equivalents (₹ cr) | 408.6 | — | — |
| Quarterly cash burn (₹ cr) | 388.8 | — | — |
From the quarterly results and the earnings call, read by FinMinutes. Latest quarter, read in full.
Read using the New-age and platform framework (named in the filing read). Primary valuation lens: EV/Sales and contribution margin; no earnings measure.
Read more closely in this sector: ESOP cost against adjusted EBITDA · Cash runway at the current burn · Related-party revenue · Contribution margin trend.
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue from operations | 2,441 | 3,774 | 5,144 | 6,386 | 7,950 | 10,022 |
| Other income | 12 | 27 | 30 | 30 | 27 | 15 |
| Depreciation | 72 | 96 | 173 | 224 | 266 | 320 |
| Finance cost | 32 | 47 | 76 | 84 | 108 | 118 |
| Profit before tax | 66 | 47 | 38 | 69 | 127 | 330 |
| Net profit (owners) | 62 | 41 | 21 | 40 | 72 | 204 |
| EPS (₹) | 0.23 | 0.14 | 0.07 | 0.11 | 0.23 | 0.70 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Metric | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,507 | 1,789 | 1,668 | 1,746 | 1,875 | 2,267 | 2,062 | 2,155 | 2,346 | 2,873 | 2,648 | 2,782 |
| Other Income | 9 | 8 | 7 | 7 | 5 | 6 | 9 | 9 | 7 | -10 | 9 | 9 |
| Expenses | 1,426 | 1,690 | 1,575 | 1,650 | 1,771 | 2,126 | 1,928 | 2,014 | 2,187 | 2,644 | 2,425 | 2,546 |
| Depreciation | 55 | 58 | 60 | 60 | 64 | 70 | 73 | 76 | 79 | 81 | 84 | 89 |
| Finance cost | 21 | 22 | 21 | 21 | 24 | 32 | 30 | 30 | 31 | 29 | 26 | 27 |
| Profit before tax | 13 | 26 | 20 | 22 | 21 | 45 | 40 | 44 | 55 | 110 | 122 | 129 |
| Net Profit | 8 | 17 | 9 | 14 | 13 | 26 | 19 | 24 | 33 | 68 | 79 | 80 |
| EPS | 0.02 | 0.06 | 0.02 | 0.03 | 0.04 | 0.09 | 0.07 | 0.08 | 0.12 | 0.22 | 0.27 | 0.28 |
| Item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Equity Capital | 15 | 47 | 285 | 286 | 286 | 286 |
| Reserves | 475 | 1,292 | 1,093 | 977 | 1,015 | 1,152 |
| Borrowings | 333 | 593 | 798 | 969 | 1,321 | 1,238 |
| Net block | 231 | 483 | 699 | 668 | 835 | 1,008 |
| CWIP | 2 | 24 | 31 | 30 | 37 | 9 |
| Investments | 1 | 0 | 38 | 34 | 0 | 0 |
| Total Assets | 1,302 | 2,646 | 2,950 | 3,401 | 3,980 | 4,611 |
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Cash from operations | 133 | -354 | -140 | 0 | 467 | 644 |
| Cash from investing | -130 | -603 | 140 | -10 | -205 | -159 |
| Cash from financing | -38 | 927 | 5 | 44 | -212 | -433 |
| Free cash flow | 91 | -448 | -348 | -110 | 339 | 493 |
| Net change in cash | -34 | -30 | 4 | 34 | 49 | 52 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
The part no one reads: the auditor's opinion, the contingent liabilities buried in the notes, the covenants, and the claims in the deck placed beside the figures that test them.
Where analysts pressed management on the earnings call, and exactly how management answered — the questions that were hardest to answer are usually the ones that matter.
These are coverage counts, not ratings. Each one asks a fixed set of questions of the filings and reports how many the company answered. A company that discloses nothing counts nothing here — that is a statement about the disclosure, not about the business.
The same read, applied to the companies this one competes with.
FSN E-Commerce Ventures Ltd. reported revenue of ₹3,006 cr for July to September 2026, +28.1% on the year and +8.1% on the quarter. That is faster than this quarter has grown in recent years (+24.8% on average), so the year-on-year number is not just the season. It is the highest quarterly revenue in the last 12 quarters on record. Over the last four quarters revenue comes to ₹11,309 cr, +28.1% on the four before.
Operating profit (EBITDA) was ₹263 cr, a margin of 8.7%, +196 bps on the year and +25 bps on the quarter. It is the widest margin of the last 8 quarters (range 6.2% to 8.7%). Operating costs grew +25.4% against revenue growth of +28.1%, so more of each rupee of sales reached operating profit.
Net profit was ₹101 cr, +206.8% on the year and +26.9% on the quarter, with earnings per share of ₹0.35. Profit before other income, one-offs and tax grew 187.2%, so 20 points of the headline growth came from outside the core business. The tax rate was 32% against an average of 40% over the previous 8 quarters, which lifted profit this quarter. Profit over the last four quarters totals ₹328 cr, +221.6% on the four before.
Of the 3 companies in New-age and platform that have reported Q2 FY27 so far, FSN E-Commerce Ventures Ltd. ranks 2nd on revenue growth; the sector median is +27.0%. Its margin moved +196 bps on the year against a sector median of +354 bps.
For platform businesses the line that matters is how fast losses narrow as revenue scales; contribution margin and customer metrics carry the story the statements only hint at.
On earnings per share of ₹1.12 over the last four quarters, the stock at ₹345.00 trades at 308.0 times trailing earnings.
Profit with no operating cash behind it. Where did the cash go?
Source: Cash flow statement
Headline profit grew much faster than core profit. What made up the difference?
Source: Results filing
Could not run on this quarter: IPO money used as stated, Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery. The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Trade receivables | ₹271 cr | ₹289 cr | ▼ 6.4% |
| Inventory | ₹2,210 cr | ₹1,642 cr | ▲ 34.6% |
| Cash | ₹180 cr | ₹177 cr | ▲ 1.4% |
| Bank balances | ₹169 cr | ₹143 cr | ▲ 18.4% |
| Long-term borrowings | ₹18.2 cr | ₹18.3 cr | ▼ 1.0% |
| Short-term borrowings | ₹973 cr | ₹729 cr | ▲ 33.4% |
| Trade payables | ₹951 cr | ₹732 cr | ▲ 30.0% |
| Net block | ₹307 cr | ₹300 cr | ▲ 2.2% |
| Capital work in progress | ₹4.3 cr | ₹9.3 cr | ▼ 53.9% |
| Equity | ₹1,714 cr | ₹1,502 cr | ▲ 14.1% |
| Total assets | ₹5,342 cr | ₹4,611 cr | ▲ 15.8% |
| Cash flow, year to date | This year | Last year |
|---|---|---|
| Operating cash flow | −₹28.6 cr | ₹129 cr |
| Capital expenditure | −₹73.3 cr | −₹77.1 cr |
| Investing cash flow | −₹63.5 cr | −₹60.3 cr |
| Financing cash flow | ₹94.5 cr | −₹81.3 cr |
Operating cash flow was -0.16× profit. Receivables at 9 days of sales (−2 days against the last year end). Inventory at 70 days of sales (+10 days).
Other matter: “”We did not review the interim financial information of 15 subsidiaries included in the Statement, whose financial information reflect total assets of ₹ 971 Crores as at 30 September 2026, total revenues of ₹ 341 Crores and ₹ 676 Crores,… Read in full
We did not review the interim financial information of 15 subsidiaries included in the Statement, whose financial information reflect total assets of ₹ 971 Crores as at 30 September 2026, total revenues of ₹ 341 Crores and ₹ 676 Crores, total net profit after tax of ₹ 25 Crores and ₹ 53 Crores, total comprehensive income of ₹ 25 Crores and ₹ 53 Crores for the quarter and year-to-date period ended on 30 September 2026, respectively, and net cash inflows of ₹ 8.78 Crores for the period ended 30 September 2026, as considered in the Statement. These interim financial information have been reviewed by the other auditor whose review reports have been furnished to us by the management, and our conclusion in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the review reports of such other auditor and the procedures performed by us as stated in paragraph 3 above.
Filing p. consolidated limited review report
Approved the acquisition of 82% equity stake in Simply Nam Beauty Private Limited for a consideration of up to Rs. 33 Crores. (p. outcome letter Annexure B)
Completed acquisition of 51% stake in Aminu Wellness Private Limited for a consideration paid during the quarter of Rs. 21.70 Crores. (p. consolidated note 4)
Exercised contractual call option to acquire 20,864 equity shares in Earth Rhythm Limited for Rs. 9.43 Crores during the quarter. (p. consolidated note 3)
Tax: Consolidated tax expense of ₹47.32 crore (current tax ₹59.23 crore, deferred tax credit ₹11.91 crore) on Profit before tax of ₹148.51 crore
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| GOV or GMV (₹ cr) | 6,151 | — | 4,727 |
| Take rate | 48.87% | — | — |
| Contribution margin | 20.6% | 21.2% | 19.6% |
| Adjusted EBITDA (₹ cr) | 263 | 236 | 159 |
| ESOP cost (₹ cr) | 12.61 | — | — |
| Customers or MTU (lakh) | 65 | — | — |
| Cash and equivalents (₹ cr) | 408.6 | — | — |
| Quarterly cash burn (₹ cr) | 388.8 | — | — |
Worked out from filed numbers. Net Take Rate (Revenue / GMV): Revenue from operations (₹3,006.04 crore) / GMV (₹6,151.00 crore) * 100
Share-based payment expense for 6M was ₹12.61 crore compared to 6M EBITDA of ₹499.00 crore (2.53% of EBITDA).
ESOP expense remains low relative to cash earnings and core operating profitability.
Company generated positive operating profit net of lease payments of ₹388.80 crore in H1 FY27 and holds ₹408.60 crore in cash, bank balances and FDs.
Strong positive operating cash flow eliminates cash burn risk.
Inter-segment eliminations are minimal and sales are direct-to-consumer across beauty and fashion platforms.
No significant related party revenue concentration.
Contribution Margin % expanded to 20.6% in Q2 FY27 from 19.6% in Q2 FY26 (+109 bps YoY) driven by scale, rising share of House of Nykaa, and marketing income uptick.
Healthy margin expansion supported by high-margin owned brand growth.
Read using the New-age and platform framework (named in the filing read). Primary valuation lens: EV/Sales and contribution margin; no earnings measure.
Read more closely in this sector: ESOP cost against adjusted EBITDA · Cash runway at the current burn · Related-party revenue · Contribution margin trend.
| Metric | Guidance | For | Against earlier guidance |
|---|---|---|---|
| Simply Nam Equity Stake Acquisition | 82.00 | By Q3 FY27 | unchanged or first given |
| Annualized GMV Run-rate across platforms | 2.60 | Current run-rate | unchanged or first given |
Held for next quarter's said-then-did check.
| Segment | Revenue | YoY | Result | YoY |
|---|---|---|---|---|
| Beauty | ₹2,700 cr | ▲ 26.6% | ₹180 cr | ▲ 89.7% |
| Fashion | ₹287 cr | ▲ 42.9% | −₹7.7 cr | — |
| Others | ₹19.1 cr | ▲ 45.5% | −₹10.7 cr | — |
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹1,789 cr | ₹1,668 cr | ₹1,746 cr | ₹1,875 cr | ₹2,267 cr | ₹2,062 cr | ₹2,155 cr | ₹2,346 cr | ₹2,873 cr | ₹2,648 cr | ₹2,782 cr | ₹3,006 cr |
| YoY | — | — | +23% | +24% | +27% | +24% | +23% | +25% | +27% | +28% | +29% | +28% |
| EBITDA margin | 5.5% | 5.6% | 5.5% | 5.5% | 6.2% | 6.5% | 6.5% | 6.8% | 8.0% | 8.4% | 8.5% | 8.7% |
| Other income, % of PBT | 31% | 35% | 32% | 24% | 13% | 23% | 20% | 14% | −9% | 7% | 7% | 6% |
| Exceptional items | — | — | — | — | — | — | — | −₹1.0 cr | — | — | — | — |
| Tax rate | 31% | 50% | 36% | 37% | 39% | 52% | 44% | 40% | 38% | 35% | 38% | 32% |
| Net profit | ₹17.0 cr | ₹9.0 cr | ₹14.0 cr | ₹13.0 cr | ₹26.0 cr | ₹19.0 cr | ₹24.0 cr | ₹33.0 cr | ₹68.0 cr | ₹79.0 cr | ₹79.8 cr | ₹101 cr |
| YoY | — | — | +180% | +63% | +53% | +111% | +71% | +154% | +162% | +316% | +232% | +207% |
| Core profit YoY | — | — | +400% | +300% | +117% | +138% | +133% | +202% | +208% | +265% | +242% | +187% |
| EPS | ₹0.06 | ₹0.02 | ₹0.03 | ₹0.04 | ₹0.09 | ₹0.07 | ₹0.08 | ₹0.12 | ₹0.22 | ₹0.27 | ₹0.28 | ₹0.35 |
| Flags | 1 | 1 | ✓ | ✓ | 1 | 1 | 1 | ✓ | ✓ | 1 | ✓ | 2 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.