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6 min read | Updated on September 30, 2025, 12:31 IST
SUMMARY
Nykaa share price: In June 2025, FSN E-Commerce Ventures said it has set a break-even target of FY26 for its cash-burning fashion arm on account of marketing efficiencies, overhead leverage, and own-brand growth.
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Nykaa's profit more than doubled to ₹66.08 crore in FY25, from ₹32.26 crore in the previous fiscal year. | Image: Shutterstock
Data show that the Nykaa shares have rallied 28% over the past six months and around 40% year-to-date (YTD), or so far in 2025.
In the past 12 months, the stock price has gained 18%.
In June 2025, FSN E-Commerce Ventures said it has set a break-even target of FY26 for its cash-burning fashion arm on account of marketing efficiencies, overhead leverage, and own-brand growth.
Break-even in business means reaching a point where a firm's total revenue equals its total costs — meaning it is not making a profit, but it is not losing money either.
"Nykaa is also foraying into the quick-commerce arena with 'Nykaa Now', which offers delivery times ranging from 30 to 120 minutes across seven major cities. The service is backed by a network of beauty warehouses, physical retail stores and rapid stores across the country," the company said.
"The fashion vertical, which generated about ₹3,800 crore in GMV (Gross Merchandise Value), is currently a drag on consolidated profitability, posting a negative EBITDA margin of -8.3% for FY25," it had said.
The Mumbai-headquartered firm had said that it anticipates achieving EBITDA break-even by FY26 and reaching a "steady state" margin of approximately 10% by FY28.
This turnaround will be driven through a mix of strong repeat buying, its own brands' growth, and significant leverage in overheads with scale, Nykaa had said.
Nykaa's profit more than doubled to ₹66.08 crore in FY25, from ₹32.26 crore in the previous fiscal year.
Meanwhile, in its Q1 FY26 earnings, Nykaa said its Fashion segment posted a robust performance during the period, signalling a strong rebound in growth alongside notable profitability improvements. GMV grew 25% YoY to ₹964 crore.
Last year, the Nykaa Beauty Trends Report said that India's beauty and personal care (BPC) market is expected to grow at a compounded annual growth rate (CAGR) of 10-11% to reach $34 billion by 2028.
According to the report, e-commerce is poised to be the biggest driver of this growth and the fastest-growing segment, anticipated to achieve a CAGR of around 25%.
"Rising aspirations and higher incomes among Indian consumers will propel the market for premium beauty, expected to reach $3-3.2 billion by 2028. With 520-560 million users in 2023, the democratisation of beauty expertise via social media is significantly influencing consumer choices," the statement said.
The report said that online trade channels for BPC are expected to grow at around 25% CAGR and be at par with offline organised trade to account for 33% of the segment's total turnover.
India's luxury beauty market is expected to quintuple to $4 billion by 2035 from $800 million in 2023, driven by its young, affluent, social-media-savvy shoppers with rising disposable incomes, consulting firm Kearney and luxury beauty distributor LUXASIA said in a report.
Luxury beauty makes up just 4% of the $21-billion beauty and personal care market, compared with 8% to 24% across top Southeast Asian countries and 25% to 48% in developed markets, including China and the United States.
These developments are very positive for Nykaa.
This year, the festive season is special, as the government has announced the GST bonanza as well as nil income tax up to ₹12 lakh to boost consumption. This is likely to boost sales of consumer businesses, including the likes of Nykaa.
The GST reforms, effective from September 22 -- the first day of Navratri --reduced tax rates in several high-demand categories, including large-screen TVs, mid-range fashion and furniture, providing direct price benefits to consumers.
These changes have not only lowered retail prices but also encouraged shoppers to look beyond tactical discount-hunting towards more aspirational purchases, lifting participation from tier 2 and tier 3 cities and stimulating growth in discretionary spending.
On September 24, 2025, Nykaa said in its press release that the company has appointed Dipak Gupta as an Additional Director, under the category of Independent Director of the Company, w.e.f. October 01, 2025.
Dipak Gupta served as the Managing Director & CEO of Kotak Mahindra Bank Limited until December 31, 2023. He brings over three decades of experience in the financial services sector, with the last two and a half decades at Kotak Mahindra Group.
Welcoming Dipak Gupta’s appointment, Falguni Nayar, Executive Chairperson, Founder and CEO of Nykaa, said, "Dipak’s profound knowledge of financial services, coupled with his strategic acumen and leadership in digital innovation, will be invaluable to Nykaa as we continue to scale and diversify. His understanding of complex business ecosystems and customer-centric approaches aligns perfectly with our vision of delivering unparalleled experiences to our consumers. We look forward to his guidance as we chart the next phase of growth."
FSN E-Commerce reported a consolidated net profit of ₹24 crore in Q1 FY26, which was up 79% compared to the ₹14 crore profit reported in the year-ago period.
Its revenue from operations during the period grew 23% to ₹2,155 crore versus ₹1,746 crore in Q1 FY25.
The company's GMV reached Rs 4,182 crore in Q1FY26, up 26% YoY, while its earnings before interest, taxes, depreciation and amortisation (EBITDA) were 46% higher YoY, with EBITDA margin expanding to 6.5% from 5.5% in Q1 FY25.
Commenting on the earnings, Falguni Nayar, Executive Chairperson, Founder and CEO of Nykaa, said, “This quarter’s performance underscores Nykaa’s ability to consistently balance growth and profitability across both our beauty and fashion businesses. Since our IPO, we have consistently delivered mid-20s growth at a consolidated level. Our cumulative customer base now stands at 45 million, reflecting the growing trust and adoption of our platform.”
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