NYKAANSEQ4 FY26May 26, 2026

FSN E-Commerce Ventures Limited

12,859words
68turns
8analyst exchanges
6executives
Management on call
Falguni Nayar
EXECUTIVE CHAIRPERSON, MANAGING DIRECTOR AND CHIEF EXECUTIVE
Anchit Nayar
EXECUTIVE DIRECTOR AND
Adwaita Nayar
EXECUTIVE DIRECTOR AND
Vishal Gupta
CHIEF EXECUTIVE OFFICER –
Abhijeet Dabas
HEAD OF NYKAA
P. Ganesh
CHIEF FINANCIAL OFFICER – FSN
Key numbers — 40 extracted
28%
r 4 financial year '26, we are really seeing continued growth momentum in both GMV, which grew at 28% year-on-year and net revenue, which grew also at a similar pace of 28% year-on-year. And the ne
INR 2,648 crore
which grew also at a similar pace of 28% year-on-year. And the net revenue for the quarter was INR 2,648 crores. This is some of the highest growth we've seen in the last 12 quarters as well as around now for
rs,
the highest growth we've seen in the last 12 quarters as well as around now for the last 14 quarters, we have sustained a mid-20s growth in our GMV and net revenue on a broad basis. On the gross profi
INR 1,203 crore
a broad basis. On the gross profit, we are really happy to say that gross profit has come out at INR 1,203 crores, which is 45.4%, about a 32% increase year-on-year and again. One of the highest gross margin
45.4%
s profit, we are really happy to say that gross profit has come out at INR 1,203 crores, which is 45.4%, about a 32% increase year-on-year and again. One of the highest gross margin ever in the last
32%
e really happy to say that gross profit has come out at INR 1,203 crores, which is 45.4%, about a 32% increase year-on-year and again. One of the highest gross margin ever in the last 14 quarters. On
INR 223 crore
of the highest gross margin ever in the last 14 quarters. On the EBITDA front, the EBITDA was at INR 223 crores, 8.4% to net revenue and 67% growth year-on-year, and again, one of the highest EBITDA margin ev
8.4%
gross margin ever in the last 14 quarters. On the EBITDA front, the EBITDA was at INR 223 crores, 8.4% to net revenue and 67% growth year-on-year, and again, one of the highest EBITDA margin ever, not
67%
last 14 quarters. On the EBITDA front, the EBITDA was at INR 223 crores, 8.4% to net revenue and 67% growth year-on-year, and again, one of the highest EBITDA margin ever, not just in the last 14 qu
INR 79 crore
ighest EBITDA margin ever, not just in the last 14 quarters, but ever. And on PAT, it came out at INR 79 crores, a 3% PAT with a 313% year-on-year growth. Again, this is one of the highest PAT margins ever.
3%
gin ever, not just in the last 14 quarters, but ever. And on PAT, it came out at INR 79 crores, a 3% PAT with a 313% year-on-year growth. Again, this is one of the highest PAT margins ever. With t
313%
just in the last 14 quarters, but ever. And on PAT, it came out at INR 79 crores, a 3% PAT with a 313% year-on-year growth. Again, this is one of the highest PAT margins ever. With that, I'll move o
Guidance — 20 items
Anchit Nayar
opening
“So, we're seeing acceleration in both growth and profitability as we end FY26.”
Anchit Nayar
opening
“And on the ultra- luxury side, Nykaa continues to build a very unique positioning to cater to not only where the market is today, which scales from mass to prestige, but also starting to build a play on the ultra- luxury side for where we assume segments of our consumer base will be in the coming years.”
Anchit Nayar
opening
“The second big trend we're seeing in the beauty space over the past several years and which we expect to continue going forward is the trend of dermacosmetics.”
Anchit Nayar
opening
“And this is a testament to how we're able to take a relationship and deepen that relationship over time and deliver excellent commercial outcomes to the brands as well as to ourselves and we hope to replicate this now with several brands in the future, one of which is the Kiehl's brand.”
Adwaita Nayar
opening
“The year was really strong from the perspective of certain brands really emerged as very strong players, both on our platform and on other platforms as well, and we'll talk about some of those going forward.”
Adwaita Nayar
opening
“With that, I'll hand over to Vishal, who will be speaking about the Superstore business.”
Abhijeet Dabas
opening
“So, the customer funnel looks very strong heading into next year.”
Abhijeet Dabas
opening
“So overall, now with the completeness of assortment across categories that Nykaa Fashion has, while we will continue to be women centric, but we are a much more holistic lifestyle platform heading into next year.”
Abhijeet Dabas
opening
“And this is a direction that we will continue to maintain, which is leaning very heavily into the creator ecosystem and making content and commerce integrate with each other going forward.”
Kapil Singh
qa
“As we are starting a new financial year so I thought that it would be appropriate to ask your outlook for the next year and all the key segments, what are your thoughts, both in terms of growth and margins?”
Risks & concerns — 5 flagged
However, you are right that the global concerns, which are being translated to high currency and oil prices, I mean, high oil prices and depreciating currency and its impact on inflation and through that consumption makes us cautious for the next year.
— Falguni Nayar
And my second question is on impact of a higher fuel price we should see on raw materials and should we see procurement cost increasing and hence an impact on margins out there?
— Sachin Salgaonkar
But yes, some of it is a result of the weightage of each of the respective businesses within the vertical and on inflation and procurement cost, it is a risk in the sense that I think freight cost and obviously, with the currency issues that we are facing, there is some pressure probably on brands to take a price increase.
— Anchit Nayar
And as a result, even our ad dollars are not as concentrated to where that risk is meaningful for us.
— Anchit Nayar
So in that sense, it limits our exposure both from a forex volatility perspective as well as from a potential supply chain challenge.
— P. Ganesh
Q&A — 8 exchanges
Q
Okay. This is Kapil from Nomura. Congratulations on a very strong performance for the quarter as well as for the year. As we are starting a new financial year so I thought that it would be appropriate to ask your outlook for the next year and all the key segments, what are your thoughts, both in terms of growth and margins? We are seeing some signs of inflation as well. So any thoughts there? How does it impact demand and margins?
Falguni Nayar
I think it's really hard to make forward-looking statements, but I have to admit that April and May have been good overall for the business in terms of the growth momentum. However, you are right that the global concerns, which are being translated to high currency and oil prices, I mean, high oil prices and depreciating currency and its impact on inflation and through that consumption makes us cautious for the next year. But I have to admit that we are definitely seeing benefits of AI-led growth in our business for sure. So, it will be a combination of the two. There will be some general glob
Q
This is Sachin Salgaonkar from Bank of America. Congrats on a great set of numbers. I have 2 questions. First question, more a follow-up on margins. I would love to understand where should we see steady state margins of BPC coming up to? We have seen consistent improvement on margins. I understand as a percentage of revenue continues to increase, but we would love to get a sense and same on fashion. We already had breakeven. So should we expect continued improvement in margins actually going ahead? And any thoughts on where are we from a steady state? A relative question out here is, how shoul
Anchit Nayar
Maybe I'll kick it off on Beauty. And then Abhijeet you can comment on Fashion. Look, again, as I always say on these calls, the Beauty vertical comprises 3 very different businesses. One is obviously the multi-brand retail business. Second is our house of brands and third is the B2B Superstore business. So all 3 have very different margin profiles. But what I can tell you is, and based on the commentary you heard from the various business leaders, each business is independently seeing improvement in their margin profile. So ultimately, how that shakes out at a consolidated vertical reporting
Q
Yes, good evening. This is Nihal Jham from HSBC. Congratulations on the strong performance. I have 3 questions. The first was that what has driven the improvement in the fashion growth in '26? We've seen that the 15 has sort of jumped to more than 30 in this year. And this we've managed while reducing marketing also. So if you could just give a landscape of both these elements?
Abhijeet Dabas
Sure. Thanks for the question, Nihal. Like I said, I think growth is firstly dependent on just customers transacting more frequently, more customers transacting more frequently. We have remained focused and we have called out in pretty much every quarterly update that we have remained focused on customer acquisition throughout. A bulk of our marketing investments actually go towards brand building for the platform as well as acquiring customers. And then we have been very focused on assortment addition through the last year, particularly adding very strong brands like an H&M, like Nike. Those
Q
Am I audible?
Management
Q
This is Percy Panthaki from IIFL. Maybe just had a question on your owned brands in beauty. You've done exceedingly well in this portfolio. There's been a 65% growth Y-o-Y. Dot & Key must be probably close to INR 1,000 crores in NSV terms. How do you see this portfolio growing now? I mean, on this base, which is a pretty high base now, do you think that this growth rate maintains or it slows down a little bit given that it has already scaled up to a meaningful size now? And it would be unrealistic of us to expect the same kind of growth. And I'm sure that, as you said, these businesses are at
Adwaita Nayar
Yes. I can comment there first to address, the first part of that question. The way I would position it is more about I think Nykaa has become very excited about the opportunity to build a really compelling house of brands in India. And I think that strategy will come down to having the right portfolio of brands. We have three big brands at the moment. I would say we probably have 4 really meaningful brands at the moment, Dot & Key, Nykaa Cosmetics, Kay Beauty and Nykd. And I would say there are a couple of brands further that are looking very high potential that will sort of break out this ne
Latika· JP Morgan
Q
Sure. Hi, this is Latika from JP Morgan. You answered a lot of the questions that I had, but just a few more things from my side. The first is given the way the rupee is depreciating, I just wanted to get a sense of what's the salience of imported brands in your beauty business? And have you started to see some of those translations led realization increases already? Is it even meaningful to think about? Sure. The second question I had was just an extension of the discussion you had on owned brands. Clearly, FY '26 saw massive 65% increase in GMV growth and almost 2/3 of that business is Dot &
P. Ganesh
Yes. So the imports for us, direct imports form a relatively small portion of our business. So in that sense, it limits our exposure both from a forex volatility perspective as well as from a potential supply chain challenge. Having said that, from a forex perspective, we operate on a fully hedged basis and at any point in time, the next 2 to 3 months, exposures continue to remain hedged. So that also gives us a level of protection from near-term volatility as far as currency is concerned. Okay, Adwaita, you go first. Like I stated before, I think the growth has to be on the back of both the e
Q
Thank you very much, everyone, for being on the call with us and we look forward to seeing you again later in the year.
Management
Q
Thank you.
Abhijeet Dabas
Thank you.
Speaking time
Anchit Nayar
14
Moderator
9
Falguni Nayar
9
Percy Panthaki
7
Abhijeet Dabas
5
Kapil Singh
5
Latika Chopra
5
Adwaita Nayar
4
Nihal Mahesh Jham
4
Sachin Salgaonkar
3
Opening remarks
Falguni Nayar
Thank you, Michelle. Hi. Good afternoon, everyone, and I want to welcome all of you on behalf of me and my management team who are here today. I'll start with a brief presentation of the presentation of performance snapshot. For the quarter 4 financial year '26, we are really seeing continued growth momentum in both GMV, which grew at 28% year-on-year and net revenue, which grew also at a similar pace of 28% year-on-year. And the net revenue for the quarter was INR 2,648 crores. This is some of the highest growth we've seen in the last 12 quarters as well as around now for the last 14 quarters, we have sustained a mid-20s growth in our GMV and net revenue on a broad basis. On the gross profit, we are really happy to say that gross profit has come out at INR 1,203 crores, which is 45.4%, about a 32% increase year-on-year and again. One of the highest gross margin ever in the last 14 quarters. On the EBITDA front, the EBITDA was at INR 223 crores, 8.4% to net revenue and 67% growth year-
Anchit Nayar
Yes. Okay. Great. Thank you very much, and thank you for everyone for joining this call. So in a similar vein, Beauty as a vertical has also had a very strong quarter to cap the end of a very strong year. To give you a sense, we closed FY '26 with almost INR 15,000 crores of GMV, which is a 27% growth year-on-year, around INR 8,500 crores of NSV and an EBITDA margin of 9.6%. In terms of Q4, again, 27% growth on GMV, 29% growth on NSV and an EBITDA margin of 10.3%, so exiting the year on a strong note with a 70-basis point improvement on EBITDA margin year-over-year. So, we're seeing acceleration in both growth and profitability as we end FY26. Next slide, please. So the growth on revenue is coming alongside an improvement in the marketing efficiencies at all levels of the funnel. As you can see, we had about 1.8 billion visits to our website and app in FY '26, which was a 28% growth year-on-year. So despite getting to a very large scale in terms of customer visit and traffic, we contin
Adwaita Nayar
Hi, everyone. So we'll be talking about the House of Nykaa. For FY '26, this unit delivered a strong INR 3,176 crores of GMV. That's a ~50% year-on-year increase. Served more than 17 million consumers and expanded distribution beyond online as well to 150,000 GT doors. As a reminder, this unit includes brands across beauty and fashion, 7 brands in Beauty and in Fashion 5 brands with an increased focus on one in particular, which is Nykd. The year was really strong from the perspective of certain brands really emerged as very strong players, both on our platform and on other platforms as well, and we'll talk about some of those going forward. There were a lot of very strong innovations that became real leaders on the platform and dominated in categories in which they were launched. And there was a lot of focus on driving the right unit economics channel by channel. And therefore, this unit as a whole saw a very large EBITDA expansion as well. Moving on. Focusing on just the Beauty side
Vishal Gupta
Thanks, Adwaita. Good evening, everyone. Happy to report that we continue to expand the scale of our business. In a short span of 4 years, we have created a ~INR 1,200 crores GMV business which is quite remarkable on its own. And this has been driven by 2 things. The kind of customer base and scale that we have created, we now reach ~ 0.5 million retailers, what we call customers across 1,300 cities. And we continue to grow that year-on-year with 1.3 lakh retailers added in last year alone and the kind of brands we attract, which I'll come to in a second. But what is also important is that this year, almost 30% of our orders actually came from retailers placing the orders on their own, which shows the shift in the habit towards self-serve, which is important for us. Next slide. Like I said, our 0.5 million retailer base is quite mouthwatering for our brand partners. We have over 220 leading brands on our platform from the traditional large FMCG brands who, despite having a good distrib
Abhijeet Dabas
Yes. Thanks, Vishal. Hi. Good evening, everyone. I'll quickly share the highlights from the Nykaa Fashion business. So firstly, just talking about the whole year numbers first, as Falguni ma'am shared earlier. I think this has been a year of revival in growth and strong growth performance for the full year for the fashion business. As you can see on the slide, the financial year '26 was 30% growth, almost reaching INR 5,000 crores in GMV, close to 30% growth in NSV reaching INR 1,447 crores in NSV for the year. And as a result of the growth as well as the underlying health of the business that we have consistently been improving through the year. A significant improvement in EBITDA margin from minus 8.3% in FY '25 to minus 2.6%, which is a 570 basis points improvement in EBITDA for the full year, but talking about even the last quarter, quarter 4 of financial year '26, that was even higher growth, particularly on NSV it was 42% year-on-year growth. And I'm happy to share with everyone
P. Ganesh
Thank you, Abhijeet, and good evening, everyone. I'll now share a quick overview of our quarterly as well as full year performance. There's been a strong quarter and, more importantly, a strong year for Nykaa. We crossed the milestone of INR 100 billion revenue in FY '26, our revenue from operations has doubled in the last 3 years, reflecting a healthy growth and continued momentum across businesses. The profitability improvement was even stronger with EBITDA at 3x and PAT at 10x versus 3 years ago. For FY '26, revenue, EBITDA and PAT growth has been higher compared to the last 2 years, coming in at 26%, 59% and 183%, respectively. Moving to the next slide. Sharing a quick snapshot of the P&L, which reflects a strong improvement across gross margin, EBITDA and PAT, both for the quarter as well as the full year and going ahead. Here, we have a quick overview of the key factors that have been driving the margin improvement. That's what you see on this slide, with gross margin improving b
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