Nykaa Fashion is increasingly contributing to customer acquisition for the wider Nykaa ecosystem, marking a shift in the relationship between the company’s fashion and beauty businesses, according to Nykaa Fashion Chief Executive Officer Abhijeet Dabas.
Speaking in a post-Q4 FY ’26 earnings interview, Dabas said that while Nykaa Fashion had initially benefited significantly from the company’s established beauty business, the dynamic has now become reciprocal. He noted that the fashion platform is playing an important role in bringing new customers into Nykaa’s broader business.
FSN E-Commerce Ventures, the parent company of Nykaa, reported a consolidated net profit of Rs. 78.38 crore (US $8.21 million) in the fourth quarter of FY ’26, compared with Rs. 20.28 crore (US $2.12 million) in the corresponding period last year, reflecting a growth of 286%. The increase was driven by strong demand across beauty, make-up and fashion categories.
The company’s largest segment, beauty, recorded a 27.2% year-on-year increase in sales to Rs. 2,409 crore (US $252 million) during the quarter. Meanwhile, Nykaa Fashion, which competes with online fashion retailer Myntra, delivered a 40% year-on-year growth on a smaller base, with revenue reaching Rs. 225 crore (US $23.57 million).
Addressing concerns around rising fuel costs and inflationary pressures on discretionary spending, Dabas said the company has not observed any deterioration in consumer sentiment or purchasing behaviour. He stated that Nykaa continues to work closely with both brand and logistics partners to monitor evolving macroeconomic conditions, adding that there has been no indication of demand softening so far.
Nykaa launched its fashion business in 2018 through a marketplace-led model and has since expanded well beyond its initial focus on women’s wear. While women’s fashion remains central to the platform, with more than 600 brands added during FY ’26, the company has broadened its portfolio to include men’s fashion, children’s wear and home accessories.
According to the company’s quarterly presentation, the gross merchandise value (GMV) of its emerging categories grew by more than 60% year-on-year in FY ’26. Within these segments, the kids’ category recorded growth of over 50%, while the home category expanded by more than 40%.
Dabas also expressed confidence in the outlook for the fashion business, stating that the company is not witnessing any slowdown in demand. He said the business is instead seeing accelerating momentum, supported by the sizeable market opportunity available in India’s fashion sector, which he described as a US $5 billion category.
