Nykaa is setting its sights on achieving EBITDA break-even in its fashion division by FY26, which shows a clear shift towards prioritizing profitability beyond just its beauty segment.
According to their latest investor update, Nykaa Fashion has experienced impressive growth, boasting a 55% CAGR, with its GMV skyrocketing from ₹666 Cr in FY21 to ₹3,804 Cr in FY25. The customer base for fashion has exploded from 700K to 8 million, thanks to an expanded product range and new brand collaborations.
In Q4 FY25, the overall company saw its EBITDA jump by 43% year-on-year to ₹133 Cr, with a margin increase of 90 basis points, reaching 6.5%. Nykaa plans to implement similar operational efficiencies in its fashion sector, focusing on enhancing inventory management and cost structures to hit that break-even point.
While the beauty and personal care (BPC) segment continues to lead the way—growing 25% year-on-year to ₹7,251 Cr in revenue—Nykaa is also leveraging AI tools like Nykaa Pulse for brand analytics, Muse for styling suggestions, and NyNaa for AI voice support to boost customer engagement and conversion rates.
In a strategic move to expand its global beauty offerings, Nykaa has launched the Korean skincare brand Anua exclusively in India. This addition strengthens its already impressive K-beauty lineup, further solidifying Nykaa’s position as a leader in premium international products.
The company is banking on a dual-engine strategy—focusing on profitable fashion while maintaining its dominance in beauty—as it continues to grow its D2C platform across India.
