Nykaa Fashion posted a 30% year-on-year GMV jump in FY26, crossing ₹4,900 crore. This surge comes despite Myntra executives still burying Nykaa’s numbers in an “others” dropdown on their competitive analysis sheets. The vertical also turned profitable for the first time in Q1 FY27, hitting a 0.1% EBITDA margin.
How We Got Here
For years, Nykaa Fashion focused on building private label brands like Nykd and Twenty Dresses to chase better margins. This strategy, however, failed to deliver the growth it sought, leading to a strategy pivot two years ago.
The Numbers
- Nykaa’s share price in early August touched its highest since January 2022, partly buoyed by the fashion vertical’s performance.
- Myntra's internal competitive analysis spreadsheets directly track Flipkart Fashion, Amazon Fashion, Reliance Retail’s Ajio, and Meesho.
- Former Myntra CEO Nandita Sinha also relied on this limited competitor list during business meetings.
- Nykaa Fashion previously avoided larger third-party brands due to their demands for deep discounts and high listing fees.
- CEO Abhijeet Dabas attributed recent GMV growth to expansion in assortment and consistent addition of strong brands.
What Happens Next
🇮🇳 Why This Matters for India
For fashion founders in Surat and Ludhiana building D2C brands, Nykaa Fashion’s new, more generous margin structure offers a better platform alternative to Myntra.
The Take
Myntra's dismissal of Nykaa Fashion is a blind spot; fashion consumers don't track internal excel sheets. Nykaa is quietly winning over third-party brands with its improved terms, a segment Myntra previously alienated.
Source:
The Ken ↗