FSN E-Commerce Ventures (NYKAA) Investor Day 2025 summary

Future Plans, Industry Outlook, and Business Developments

• India is projected to become the 3rd largest global economy by FY30, with retail surpassing $1.5T and e-commerce shopper base exceeding 400M by FY30, fueling beauty and fashion growth.

• Ambition to scale the content engine 3x-4x and eB2B Superstore 3x over the next 4-5 years, leveraging AI, brand collaboration, and expansion into underserved markets.

• Focus remains on women as core customers (65%-70%), with men (20%-25%) and kids (5%-7%) as growing segments.

• Premiumization and brandification trends are accelerating, with branded business expected to reach 70% of total and House of Nykaa aiming for 30% CAGR to Rs 6,000 Cr GMV by FY30.

• House of Nykaa operates 12 consumer brands with Rs 2,100 Cr GMV, and eB2B Superstore serves 3.7 lakh stores across 1,100+ cities, with 89% of sales from Tier 2+ cities.

Technology and AI Transformation

• Transitioning to an AI-native platform, embedding AI across all functions for real-time, autonomous decision-making and productivity gains.

• AI-driven initiatives include semantic and conversational search, personalized shopping journeys, virtual try-on, AI-powered stylist, and customer service automation, targeting 30% org-wide productivity gains.

• 50% of code generation to be AI-driven and 70% of customer service load to be handled by AI bots by FY26.

• Centralized AI team established to drive innovation and operational efficiency.

• AI-powered brand intelligence and content commerce enhance partner and consumer experiences.

Financial Performance and Guidance

• FY25 GMV reached Rs 15,604 Cr (+25% YoY), net revenue at Rs 7,950 Cr (+24% YoY), EBITDA at Rs 474 Cr (+37% YoY, margin 6%), and PAT grew 81% YoY to Rs 72 Cr; ROCE improved to 11.3%.

• Five-year CAGR: revenue 35%, EBITDA 41%; fashion vertical CAGR 83% from a lower base.

• Free cash flow for FY25 was INR 150 crore, with strong internal funding for growth businesses.

• Multi-year revenue CAGR of 35% and consistent EBITDA margin expansion, with internal accruals funding growth and capex focused on tech, automation, and retail expansion.

• EBITDA breakeven targeted for FY 2026, with mid to high single-digit EBITDA by FY 2028 and a long-term goal of 10%+ EBITDA.