Nykaa Now launch, fashion business breakeven in FY26 & more — Key takeaways from investor day

FSN E-Commerce Ventures Ltd., the parent company of Nykaa, released its investor day presentation on Thursday, June 26.

Here are the three key takeaways from its presentation:

Nykaa Now launch

The company launched Nykaa Now, its quick commerce platform for beauty products. It is currently available in seven cities. As per the company, Nykaa Now will fulfill orders between 30 and 120 minutes.

Fashion business

Nykaa’s fashion business will break even in the financial year 2026 and margins are seen at mid-single digits in FY28, as per the company.

It is targeting 10% steady state earnings before interest taxes depreciation and amortisation (EBITDA) margins for its fashion business.

The company’s ambition is to grow by three to four times in the next five years.

It also has big marquee launches planned in the second half of FY26.

Own brands

Nykaa’s own brands reported 2,100 crore gross merchandise value (GMV) across 12 brands.

The company has estimated the organic portfolio growing at 30% compound annual growth rate (CAGR) to 6,000 crore GMV by FY30.

Fragrances, bath and beauty and clean beauty are the key categories in focus.

Brokerage firm CLSA had initiated coverage on Nykaa on Tuesday, with an “outperform” rating and a price target of ₹229.

The brokerage said that Nykaa is a market leader and its Gross Merchandise Value (GMV) has the potential to grow in the high teens over the next five years.

Slower than expected growth and a faster scale-up of competition were cited as some of the key risks by CLSA.

Nykaa shares were up 0.3% at ₹204.73 apiece at 1.55 pm on Thursday, June 26. The stock has gained 24.3% this year, so far.

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