FSN E-Commerce Ventures (NYKAA) investor relations material

Industry and market outlook

• India's lifestyle consumer market is set for robust growth, with discretionary categories like beauty, personal care (BPC), and fashion expected to outpace overall retail, driven by rising affluence and digital adoption over the next decade.

• Urban household income is projected to double by FY36, with affluent and emerging cohorts leading consumption growth.

• Millennials, Gen Z, and Gen Alpha will drive 90%+ of BPC and fashion spending, with Gen Z showing strong preference for premium and wellness categories.

• Online retail and eB2B platforms are expanding rapidly, especially in Tier 2+ cities, with significant headroom for growth in underpenetrated categories.

• India's BPC and fashion markets are expected to double by FY31, with BPC reaching $42bn and fashion $160bn, making India a top global market.

Strategic vision and growth ambitions

• Aims to surpass $5 billion GMV in beauty and lifestyle by FY30, targeting 2-3X revenue and 4-5X EBITDA growth with low to mid-teens EBITDA margin and ROCE over 40%.

• Plans to serve 200 million cumulative consumers by FY36, leveraging India's rising affluence and digital adoption.

• Focus on expanding into premium, luxury, and specialized segments, leveraging a repeatable brand playbook and entrepreneurial organization design.

• Wellness is a key adjacency, with the wellness retail market expected to grow at 15% CAGR, adding $12bn to the total addressable market by FY31.

• International expansion is planned, with Gen Z-focused brands designed for global appeal and partnerships to bring global brands to India.

Financial performance and profitability

• FY26 delivered robust topline growth: GMV reached Rs 19,963 Cr (+28% YoY), net revenue Rs 10,022 Cr (+26% YoY), and EBITDA Rs 752 Cr (+59% YoY, margin 7.5%).

• ROCE improved to 21.2% in FY26, with working capital days optimized to 28.

• Disciplined cost optimization and operating leverage led to sustained margin expansion, with a path to 10%+ EBITDA margin and 40%+ ROCE by FY30.

• Growth businesses (Fashion, Superstore, Nykaa Man) are funded through internal accruals, with minimal reliance on external capital.

• Capex optimization post-infrastructure build-out, with future investments focused on store expansion, fulfillment, and technology.