Nykaa’s parent, FSN E-Commerce Ventures, is focusing more aggressively on fashion and plans to increase the vertical three to four times in the next five years. It is relying on high customer retention and margin expansion to fuel the push and estimates Nykaa Fashion to become EBITDA-positive as early as FY ’26. In the last fiscal, the segment had an EBITDA margin of -8.3%.
Revealing its strategy at its Annual Investors Day on Thursday, the company stated that it is aiming for a five-year steady-state EBITDA margin of 10% in the fashion business. Its house brand portfolio, House of Nykaa, meanwhile, is targeting a gross merchandise value (GMV) of Rs. 6,000 crore (US $ 701 million) by ‘—expanding at a CAGR of 30% from its current Rs. 2,100 crore (US $ 245 million).
Five of the House of Nykaa brands have already hit Rs. 100 crore (US $ 11.68 million) in GMV, and three of them are over Rs. 200 crore (US $ 23.37 million). Nykaa Fashion itself registered Rs. 3,800 crore (US $ 444 million) in GMV in FY ’25.
In order to increase fulfillment speed, Nykaa also announced the launch of NykaaNow, a fast delivery service guaranteeing order completion between 30 and 120 minutes across seven cities. At present, 80% of orders in 12 cities are fulfilled the same day or the next day, while 70% of those in 110 cities achieve the same target.
The firm’s overall GMV increased on a 42% CAGR basis over five years—over twice the 18–20% rate of the larger e-commerce industry. It has also grown to have more than 42 million customers, backed by an omnichannel network of 237 stores.
Falguni Nayar, executive chairperson and CEO said that their beauty business has scaled 5X and fashion has surged 20X in the last five years—well ahead of the industry. She added that even in a cautious macro environment, they’ve continued to grow with focus and resilience, and beauty remains a growth engine, B2B is gaining traction, and fashion is regaining momentum.
Nykaa also focused on the increasing power of Gen Z, who now control 44% of its cosmetics, personal care, and beauty spending. International luxury brands such as CHANEL, Kérastase, YSL, NARS, and Eucerin are also increasing their presence on the Nykaa platform.
