Nykaa jumps 8% to 52-week high as FY30 roadmap, wellness push cheer investors

Shares of FSN E-Commerce Ventures, the parent company of Nykaa, surged 8.12% to a 52-week high of ₹303.75 on Thursday after the beauty and fashion retailer announced an ambitious FY30 growth roadmap, outlining plans to become a “$5 billion+ beauty and lifestyle business” over the next four years.

At its Annual Investor Day 2026, Nykaa said it expects to deliver 2-3X revenue growth, 4-5X EBITDA growth, low-to-mid teen EBITDA margins and a return on capital employed (ROCE) of over 40% by FY30.

The guidance appeared to reassure investors that the company is focusing not only on growth but also on profitability and capital efficiency.

“Our ambition is to create a $5 billion-plus beauty and lifestyle business by FY30, driven by customer obsession, innovation and operational excellence,” founder and executive chairperson Falguni Nayar said.

The company said it currently serves over 55 million consumers across beauty, fashion and lifestyle categories and addresses a market opportunity exceeding $100 billion.

Wellness emerges as the next growth engine

One of the biggest takeaways from the investor presentation was Nykaa's aggressive push into wellness, which management described as a key pillar of future growth.

“Wellness is the next major opportunity, and one we believe is a natural extension of our journey,” Nayar said.

According to the company, India's health and wellness market is expected to reach $27 billion by FY31. Nykaa estimates wellness retail alone could add nearly $12 billion to its addressable market, expanding its total beauty and wellness opportunity to around $54 billion by FY31.

The company said it is leveraging its existing consumer base, premium positioning and brand partnerships to build a stronger presence in the segment.

Fashion profitability outlook improves

Investors also appeared encouraged by management's confidence in Nykaa Fashion, a business that has historically faced questions over profitability.

The company is targeting 3-3.5X GMV growth in fashion by FY30 while aiming for high single-digit EBITDA margins and eventual double-digit profitability.

Nykaa Fashion reported GMV of ₹4,954 crore in FY26 and management indicated the business is moving into a phase focused on scale as well as margin expansion.

The company's owned brands business, House of Nykaa, is also expected to play a larger role, with a target of ₹5,000 crore net sales value (NSV) by FY30.

Beauty business remains the foundation

Beauty continues to be Nykaa's largest and most profitable vertical.

The company said its beauty business exited FY26 with nearly ₹15,000 crore in GMV and serves around 45 million consumers through its online platforms and 313 stores across 99 cities.

By FY30, Nykaa aims to serve 100 million beauty consumers and expand its retail footprint to more than 600 stores.

Management highlighted that the beauty segment continues to benefit from premiumisation trends, rising disposable incomes and increasing online penetration.

AI, premium consumption add to investor optimism

Nykaa also showcased a range of AI-led initiatives across customer discovery, merchandising and operations.

The company highlighted tools such as Skin Scan, Virtual Closet, AI-powered personalisation and generative AI applications for sellers and advertisers.

Beyond technology, management anchored its long-term growth strategy on India's expanding premium consumption market.

Nykaa estimates affluent and emerging household income in India could grow from $3 trillion currently to $6.5 trillion over the next decade, while the number of online lifestyle shoppers could rise from 220 million to 330 million.

The market's reaction suggests investors looked beyond the headline $5 billion GMV target and focused instead on the company's improving profitability outlook, expanding wellness opportunity, stronger fashion economics and confidence in India's long-term premium consumption story.

The shares of Nykaa have surged over 53% in the past year, outperforming the Nifty Midcap 50 index that has risen nearly 8% during the same period.