Nykaa Targets Fashion Business EBITDA Break-Even In FY26

Listed beauty major Nykaa is targeting EBITDA (Earnings before interest, tax, depreciation and amortization) break-even for its fashion vertical in the ongoing financial year (FY26).

As per the company’s investor presentation, Nykaa is planning to grow its fashion vertical by 3-4X in the next five years, on the back of product line expansion and new customer acquisition.

The company’s fashion segment has grown at a 55% compound annual growth rate (CAGR) to INR 3,804 Cr gross merchandise value (GMV) in FY25 from INR 666 Cr in FY21. Besides, its cumulative customer base grew to 8 Mn in the year under review, from 700 K in FY21.

Notably, Nykaa’s EBITDA grew 43% year-on-year (YoY) to INR 133 Cr in the fourth quarter of the financial year ended in March 2025 (Q4 FY25). Meanwhile, its EBIDTA margin expanded 90 basis points YoY to 6.5% in the quarter under review.

While the company tries to project a positive view for its fashion segment, it is far behind when compared to the beauty and personal care segment. Nykaa’s BPC revenues rose 25% year-on-year (YoY) to INR 7,251 Cr in FY25, and its gross merchandise value (GMV) grew 30% to INR 11,775 Cr.

Abhijeet Dabas, business head of Nykaa Fashion, said in the company’s Q4 earnings call that the segment is headed in the right direction. “As we are playing to our strengths, numbers will continue to look up.”  

Last month, the BPC giant announced its quick commerce service, which delivers the products within 60 minutes, is operational in several cities.

In December 2024, Nykaa Fashion’s chief executive Nihir Parikh also quit the company. 

Nykaa’s AI Makeover 

In the investor presentation, the listed beauty giant also revealed its new AI-led tools to assist brands as well as customers and provide them an enhanced experience.

The company has powered its search bar with an AI-led assistant to optimise personalised conversations for users. 

Besides, the company also announced several other AI tools including —

• Nykaa Pulse – The company described this offering as “your brand AI copilot”, as it will assist brands on Nykaa’s platform to generate reports around the performance of their products. This will collect brand information regarding the number of SKUs sold,  last month sales, top performing products and much more
• NyNaa– The company has launched its AI Support Voicebot, which will instantly ask queries, provide faster solutions and services to the customer. The feature is already live on Nykaa’s app in beta mode, handling order-related support queries
• Nykaa Muse – With this feature, Nykaa is leveraging GenAI to recommend outfits and style customers as per their preferences, providing a personalised experience