Nykaa Expects Fashion Business To Turn EBITDA Positive By FY26

Beauty and fashion ecommerce major Nykaa expects its fashion business, Nykaa Fashion, to turn EBITDA positive by the end of the financial year 2025-26 (FY26).

Speaking during Nykaa’s ‘Annual Investor Day’ event, NykaaMan CEO Nihir Parikh said, “Our business is growing rapidly. We’ve managed to maintain our EBITDA at a level of negative 10%. By the end of the financial year 2026, we are confident that we will achieve positive EBITDA.” 

It is pertinent to note that Nykaa Fashion’s EBITDA margin stood at -10.3% in FY24. By FY27, the company aims to achieve mid-single-digit EBITDA margin, progressing to 10% thereafter, Parikh added.

He also said that the fashion vertical is filling in the gap in the market when it comes to premium platforms and it will continue to focus on this.

“We are receiving tremendous love from consumers who resonate with our offerings and how we add value to their lifestyle. Our metrics have been tracking very well. Unique visitors have been increasing steadily. Moreover, we are seeing a higher number of annual transacting customers and a rise in orders. Importantly, our conversion rates are also improving. This indicates that not only is our business expanding but the quality of our business is also enhancing,” he added.

Nykaa also said that its repeat customer ratio stood at around 36-48% last fiscal year and the company aims to increase this to 75-80% over the next few years.

Nykaa Fashion has expanded its brand portfolio to 3,200 brands from 1,500 over the last few years. This is also visible in its financial performance as Nykaa Fashion has been seeing higher growth than its BPC business over the last few quarters. 

The Falguni Nayar-led company’s gross merchandise value (GMV) for the beauty and personal care (BPC) business grew 25% year-on-year (YoY) to INR 8,340.9 Cr in FY24, while the GMV for fashion business grew 27% YoY to INR 3,270 Cr. 

Commenting about the company’s projections, Elara Capital VP Karan Taurani said, “One of the silver linings from today’s event is the management’s confidence in their fashion business, a sentiment not seen in a long time. Another positive aspect is the anticipated growth of 30% to 40% in fashion, which is substantial. In terms of fashion, we could potentially see growth of two- and-a-half times over the next three years. These are positive signs that bode well for the future.” 

During the event, Nykaa also said that it expects the BPC business to grow at a compounded annual growth rate (CAGR) of mid-to-late 20% till FY28.

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