“In the early years, fashion was benefiting very significantly from the larger beauty business. But now, it works both ways. Fashion plays a big role in acquiring customers into Nykaa ,” he said at a post Q4 2026 earnings interview.
For the quarter ended of FY26, FSN E-Commerce Ventures, parent of the beauty and fashion retailer, reported consolidated profit at Rs 78.38 crore versus Rs 20.28 crore in the year-ago quarter, growing 286%, on the back of surge in demand for make-up, beauty and fashion. Its biggest segment, beauty, grew 27.2% year-on-year in sales to Rs 2,409 crore, while the fashion business, which competes with rival Myntra, grew 40% year-on-year on a smaller base, to Rs 225 crore.
On fuel costs and overall inflation impacting discretionary spending, Dabas said so far, the platform hasn’t see negative impact in terms of consumer sentiment and trajectory. “We continue to work with our brand partners as well as logistics partners to see how the macroeconomic situation is evolving. At least so far, we don’t see any softening.”
Nykaa, which introduced the fashion business in 2018 as a marketplace operating model, has since diversified beyond women’s wear. While the women’s wear segment remains at its core with over 600 brands added in FY26, Nykaa has expanded into the men’s, kids and home accessories categories. While the GMV of emerging categories grew over 60% year-on-year in FY26, the kids and home segments grew over 50% and 40% respectively, it said in its quarter presentation.
“We are not seeing any slowdown just yet. In fact, we are seeing acceleration. And I say that because the total addressable market that we play in, fashion, is itself a $5 billion category,” Dabas added.