FSN E-Commerce Ventures, the parent company of Nykaa, is setting its sights high for the coming years with the company unveiling its ambitious targets of a 22–25 per cent revenue growth annually and a breakeven in its fashion segment by FY26. Analysts are optimistic, highlighting several strategic levers that could propel Nykaa’s next phase of growth.
The company management, on its Annual Investors Day, said that India’s lifestyle and discretionary spending categories are expected to grow steadily over the next several years. With more people shopping online, engaging digitally, and shifting toward premium products, the share of online beauty, personal care (BPC), and fashion in the e-commerce market is projected to increase. It is expected to rise from 35 per cent of a $60 billion market in FY25 to 39 per cent of a larger $170–190 billion market by FY30.
“Nykaa’s growth targets in the BPC division are in line with our view as we also expect 27 per cent/ 25 per cent revenue growth in FY26/27,” Nomura said. It further added that margins are expected to continue expanding to 10 per cent by FY27. For Fashion, however, the brokerage firm remained more conservative with 17 per cent/ 16.8 per cent growth expectation and margins improving to 7 per cent by FY27.
Nykaa’s Investor Day showcased the company’s aggressive growth aspirations across BPC and Fashion segments. JM Financial said, “Nykaa’s suggestion of mid-20s GMV growth in BPC and a 3-4x increase in Fashion NSV over the next five years reflect management’s strong confidence in scaling multiple growth levers, reinforcing its distinctive market positioning.”
Key highlights from Annual Investor Day:
a) aim to grow BPC GMV (25-30 per cent CAGR) with A&P focus,
b) EBITDA turnaround in FY26, in Fashion, led by scale (32 per cent CAGR in FY25-30) and cost efficiency benefits,
c) order convenience (turnaround within 30-120 minutes with Nykaa Now in top-seven cities).
The Growth Blueprint: Beauty, Fashion & Beyond
BPC growth: Deeper reach & premium play
Nykaa commands a 30 per cent share in India’s online BPC market, with its Gross Merchandise Value (GMV) in this segment growing at a 36 per cent CAGR over the past five years. The company aims to grow its GMV by mid-twenties per cent levels until FY30. The company’s strategy is two-pronged:
1) Deepening market penetration by investing in acquisition of quality customers through online personalisation and expansion of retail footprint in Tier 2+ cities. The company plans to increase its current network of 237 stores in 79 cities to 500+ stores across 100+ cities by FY30.
2) Premiumisation through expanding category width and depth for higher beauty consumption, aspirational marketing for premium beauty, and customer engagement through events and in-app/in-store experiences.
Fashion – Chasing profitability
Losses in fashion are a key drag on overall profitability, though these have pared by 15 per cent in the past two years. The company expects a green EBITDA (break-even) in FY26, driven by improved efficiency and sharper marketing to boost conversions. In Fashion, Nykaa is aiming for 4x GMV by FY30, at a 32 per cent CAGR versus 12.4 per cent in FY25.
For FY25, Nykaa’s Fashion vertical achieved GMV of Rs 38 billion in FY25, growing at around 12 per cent on-year, with owned brands contributing Rs 4.3 billion. “There are several new brands that the company plans to sign on to drive growth. Lower marketing spends as a percentage of sales should drive margins,” Nomura said. However, JM Financial, conservatively projected breakeven by FY27, since FY26 plans remain “contingent on recovery in discretionary consumer spending”.
Nykaa Now – Convenience as a differentiator
‘Nykaa Now’ is Nykaa’s rapid delivery initiative which offers deliveries within 60 minutes, with a broader promise of under 2 hour fulfilment. Currently active in 7 key metro cities, the service has shown strong initial traction, having delivered 1mn+ orders. This model balances customer convenience with operational efficiency, supporting profitability without the need for a dense, costly logistics network.
Nomura said, “This new channel complements Nykaa’s primary fulfillment network, which includes 44 warehouses across 15 cities. In FY25, more than 80 per cent of orders in top 12 cities were delivered the same or next day.”
House of Nykaa – Building brand value
The House of Nykaa portfolio, which includes Nykaa’s owned brands, delivered Rs 17 billion in GMV, with five brands now crossing the Rs 1 billion milestone in annual GMV. The company has launched 12 brands across all major categories, including makeup, skincare, haircare and fragrances in BPC, and indian/western wear, athleisure, lingerie, footwear and accessories in Fashion. The company views House of Nykaa as a key long-term lever for margin expansion and curating brand equity.
Superstore: Scaling the B2B frontier
Nykaa’s Superstore vertical recorded Rs 9.4 billion in GMV for FY25, scaling rapidly from Rs 3.2 billion in FY23. The platform now serves over 0.37 million retailers across 1,100 cities and 12,000+ pin codes. The company expects to break-even at 4x of its current scale. “Key growth drivers include deeper beauty assortment, scaling of own and challenger brands (targeting 4x growth), AI-led personalization, and brand-funded programs,” Nomura said.
To conclude…
Nykaa’s playbook for the next few years is clear: aggressive growth, premiumization, omni-channel expansion, and tech-driven personalization. Analysts said that if Nykaa executes on its strategy, the next chapter could see it not just sustaining, but strengthening its leadership in India’s digital beauty and fashion landscape.