Nykaa Fashion could break even in four years - FashionNetwork India

Published 3 weeks ago• 2 minute read

Beauty giant Nykaa's fashion division could break even in four years if its current trend of improvement in its earnings before interest, tax, depreciation, and amortisation continues. While Nykaa Fashion remains a loss-making vertical, its executives are confident that its outlook is improving.

A snapshot of a recent interactive Nykaa event - Nykaa- Facebook

Nykaa is charting a steady path towards profitability, posting a 40% rise in EBITDA to Rs 470 crore ($54.87 million) in the 2025 financial year, Apparel Resources India reported. The platform’s gross merchandise value climbed 28% year-on-year to Rs 15,600 crore, with fashion and business to business platform Nykaa Superstore contributing increasingly to the business' overall momentum.

“Fashion is a massive opportunity- it’s five times the size of the beauty market,” said Nykaa's co-founder and chief executive of its fashion division Adwaita Nayar, Apparel Resources India reported. The fashion vertical, now five years old, registered Rs 4,000 crore in gross merchandise value. “We’re currently operating at -8% EBITDA, but that’s a 200 basis point improvement over the previous year," said Nayar.

Offline retail contributes just 10% to GMV but plays a key role in premium and luxury sales, where it accounts for almost half. “Actually, Nykaa has one of the highest sales per square foot in the world,” said Nayar. As Nykaa evolves into a multi-vertical player, its investments in in-house brands, retail tech, and personalisation through AI are central to its strategy for long-term growth.

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