FSN E-Commerce Ventures

“the same things that we've been working on, which now have started showing results over a sustained period of time, over 3 successive quarters, will lead to the long-term guidance that we have shared, which is high single digits by FY '30 and then 10% plus in steady state.”

“And the fashion, the same numbers are INR 509 crores for the quarter 2 of this year, which is 47% year-on-year growth, a pretty strong momentum.”

“Q2 has been a strong quarter for the Beauty business as well, with GMV growing 25% to over INR 4,400 crores and NSV growing at a faster clip by 28% to INR 2,500-plus crores.”

“Also a point to note is the retail business has performed well, and this business has delivered a very strong early 20s like-for-like growth, the highest we've managed to deliver in the past 6 quarters.”

“And I think it's reflecting in the fact that currently, we have over 45 brands already who partnered with us through Nykaa Global Store. And these brands are growing at over 60% year-over-year, which is more than double the growth rate of the overall platform.”

“Today, 34% of the total Korean beauty business that is done on Nykaa is being done by brands who are currently coming through the Nykaa Global Store.”

“So, clearly a good strong quarter in a period where the festive has shifted to the third quarter.”

“So in terms of monthly active unique visitors, that has grown at 30%, which is testament to the fact that we have continued to improve the engagement.”

“In terms of annual unique transacting customers, that is now at 22.1 million.”

“So, I would say, healthy AOV improvement on the back of premiumization of brands that are being bought on the platform, thanks in part to a lot of the work that we have done as a retail platform on improving the education awareness for premium brands and premium products, and that is now reflecting in the AOV mix as well.”

“And in retail as well, you can see that the average order values in retail today are 40% higher than they were several years ago.”

“EBITDA is at INR 263 crores for the quarter, a 65% growth year-on-year and the margin stands at 8.7%.”

“The EBITDA margin for the quarter this year has come out at INR 267 crores in the second quarter, which when compared to INR 178 crores a year ago is an EBITDA margin improvement to 10.5%, a significant improvement from 9% that it was about a year earlier.”

“So the EBITDA margin for fashion for this quarter has improved from minus 3.5% to just breakeven at 0.2%.”

“On the profitability front, EBITDA is up 51% year-over-year and has crossed 10% EBITDA margin for the first time.”

“Now the interesting thing is that this improvement in scale came by zero increase in our off-line BDE headcount, which remained stable at 2,300, while we onboarded more retailers and serviced more retailers.”

“Fixed asset turnover increased to 10.8x in H1 FY '27 compared to 9.9x in FY '26, reflecting the increasing salience of our asset-light businesses.”

“Working capital days, which were already healthy at 28 days in FY '26, have remained stable at a similar level for H1 FY '27.”

“It's primarily on account of the inventory uptake, which will normalize by the time the festive season gets over and you come to the end of quarter 3.”

“And the details of the capital employed are given that capital employed pretty much stands compared to INR 1,786 crores in second quarter of '24. It now stands at INR 2,566 crores.”

“And I think we are now starting with focus on Nykaa Luxe Fashion as a Luxe store-in-store environment.”

“On Nykaa, another very interesting announcement is our partnership with L'Oreal in terms of Nykaa and L'Oreal BOLD.”

“This quarter, we're also announcing an acquisition of an 82% stake in Simply Nam.”

“As of now, this brand in FY '26 had a net revenue of INR 17 crore and has seen 5x growth in the last 4 years.”

“In terms of the transaction structure, we'll be acquiring 82% for INR33 crores.”

“The difference between GMV and NSV is half because of the GST-led impact where the GST, as you all know, came down last year.”

“That along with improvement in fulfillment expense, which is an improvement in spite of a little bit more money we had to give as part of the new labor code.”

“So I think there are enough moats that make us believe that Nykaa will continue to be a meaningful contributor in an agentic world.”

“So I think it's a bit too early to start thinking about competitive intensity in a beauty market like India, and that too in an online beauty market like India.”

“The second quarter, the September quarter has ended well with the GMV at INR 6,151 crores, which is a 30% year-on-year growth.”

“And the profit after tax is at INR 101 crores, a 207% year-on-year growth and the margin stands at 3.4%.”

“On the first half, the net revenue stands at INR 5,788 crores, a 29% year-on-year growth and gross profit margin at 45.9%, which is INR 2,657 crores.”

“You can see that from a return on capital employed, which is only 6%, 3 years ago, it now stands at solid 27.3%.”

“the fourth version of Nykaaland in Delhi again this year. Fabulous attendance, again, 30,000 attendees.”