Nykaa Expects Fashion Biz To Turn EBITDA Positive By FY26

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SUMMARY

Nykaa E-Retail CEO Anchit Nayar said Nykaa Fashion’s EBITDA has been around negative 10% for some time and it is expected to become positive by the end of FY26

Nykaa is aiming to achieve a mid-single-digit EBITDA margin by FY27 and then increase it to 10%

The Falguni Nayar-led company also expects its BPC business to grow at a CAGR of mid-to-late 20% till FY28

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, Nykaa E-Retail CEO Anchit Nayar 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, Nayar 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,” Nayar 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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Nykaa Expects Fashion Biz To Turn EBITDA Positive By FY26


SUMMARY

Nykaa E-Retail CEO Anchit Nayar said Nykaa Fashion’s EBITDA has been around negative 10% for some time and it is expected to become positive by the end of FY26

Nykaa is aiming to achieve a mid-single-digit EBITDA margin by FY27 and then increase it to 10%

The Falguni Nayar-led company also expects its BPC business to grow at a CAGR of mid-to-late 20% till FY28

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, Nykaa E-Retail CEO Anchit Nayar 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, Nayar 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,” Nayar 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.





Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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