Recently Nykaa which is a leading player in the Indian e-commerce sector, is setting ambitious financial targets. Nykaa targets positive EBITDA for fashion business by financial year 2026.

Its E-Retail CEO Anchit Nayar recently announced that Nykaa Fashion's EBITDA has been around negative 10% for some time.

However, the company expects this to turn positive by the end of FY26. This shift is part of Nykaa's broader strategy to enhance profitability and expand its market presence.

Current Financial Scenario

Currently company reported a 10% negative EBITDA for its fashion business. This has been a persistent challenge for the company.

Despite this, Nykaa remains optimistic about the future. Anchit Nayar emphasized the company's commitment to achieving a positive EBITDA by FY26.

This goal reflects Nykaa's determination to enhance operational efficiency and drive sustainable growth in its fashion segment.

Path to Profitability

Nykaa's reported that it will going to take multiple steps toward converting its fashion business EBITDA from negative to positive. Firstly, the company aims to optimize its supply chain and inventory management.

By reducing overhead costs and improving operational efficiencies, Nykaa expects to see a gradual improvement in its EBITDA margin.

Secondly, Nykaa plans to expand its product offerings and tap into new customer segments.

This diversification strategy is expected to boost revenue and contribute to a positive EBITDA.

Long-Term Financial Goals

Looking beyond FY26, Nykaa has set further financial targets. Nykaa's aims that they can achieve a mid single EBITDA till the financial year 2027.

This goal is part of Nykaa's long-term vision to solidify its market position and enhance profitability.

By FY28, Nykaa expects its EBITDA margin to increase to 10%. This ambitious target underscores the company's confidence in its business model and growth potential.

Growth in BPC Business

In addition to its fashion business, Nykaa has high expectations for its Beauty and Personal Care (BPC) segment.

The Falguni Nayar-led company anticipates its BPC business to grow at a compound annual growth rate (CAGR) of mid-to-late 20% till FY28. This growth is driven by Nykaa's strong brand presence, extensive product range, and robust customer base.

The company believes that its BPC segment will continue to be a major revenue driver in the coming years.

Strategic Initiatives

To achieve these ambitious targets, Nykaa is implementing several strategic initiatives.

The company is investing in technology and innovation to enhance the customer experience. This includes improving its online platform, launching new products, and expanding its offline presence. Additionally, Nykaa is focusing on building strong relationships with suppliers and partners.

This collaborative approach is expected to streamline operations and support the company's growth objectives.

Market Expansion

Nykaa is also exploring opportunities for market expansion. The company is looking to enter new geographies and strengthen its presence in existing markets.

By leveraging its strong brand equity and customer loyalty, Nykaa aims to capture a larger share of the e-commerce market. This expansion strategy is crucial for achieving the company's long-term financial goals and driving sustained growth.

Customer-Centric Approach

A key component of Nykaa's strategy is its customer-centric approach.Nykaa's always ready and committed toward understanding to their customers needs.

And for that they also going meet with their customers to identitify customers needs.

This involves offering a wide range of high-quality products, providing excellent customer service, and ensuring a seamless shopping experience.

By prioritizing customer satisfaction, Nykaa aims to build long-term loyalty and drive repeat business.

Short Story

In short we can say Nykaa Targets Positive EBITDA for fashion business by financial year 2026 and hoping that they can achieve new hike in their growth by their advanced strategies and technologies.

Nykaa's journey towards achieving a positive EBITDA for its fashion business by FY26 is an ambitious yet achievable goal.

With a clear focus on operational efficiency, market expansion, and customer satisfaction, the company is well-positioned to enhance its profitability and sustain growth.

Nykaa's long-term vision to achieve a mid-single-digit EBITDA margin by FY27 and a 10% margin by FY28 reflects its confidence in its business model and strategic initiatives.

Additionally, the expected growth in Nykaa's BPC segment underscores the company's strong market position and potential for future success. As Nykaa continues to innovate and expand, it remains a formidable player in the Indian e-commerce landscape.