Fueled by the recovery in its fashion segment, the e-commerce lifestyle platform Nykaa operating under FSN E-Commerce Ventures, expects its consolidated net revenue to increase by mid-20% in the Q1 period (first-quarter).
Apart from the expectations in the revenue growth, the brand’s quarterly report shows a growth in the gross merchandise value (GMV) in the mid-20% range in the fashion section. With Rs. 3,800 crore (US $ 442 million) in its gross merchandise value in 2025, this upward trajectory in fashion is largely attributed to factors such as expansion in assortment, and increased traction and customer acquisition.
However, despite the net revenue in fashion is expected to grow in the mid-teens, it will still be slower than the growth in GMV. Consequently, Nykaa has set a target of achieving 3-4X growth in its fashion segment for another five years and also made a goal of securing a 10% EBITDA margin.
As far as net profit is concerned, Nykaa stated that it has achieved a net profit of Rs. 19 crore (US $ 2.21 million), which is double the amount as compared to last year. Following its net revenue growth, the brand is also driving the AI initiatives with AI-powered customer experience, ad targeting, and backend automation. The company reported that most of its internal codes will be AI generated and largely the customer queries will be dealt through AI and voice chat interfaces.
