FSN E-Commerce Ventures Ltd Q4 FY26 Earnings Call: Crosses Rs.100B Revenue Milestone, Own Brands Surge 65%

FSN E-Commerce Ventures Ltd held its Q4 FY26 earnings call on May 21, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record profitability as Nykaa crosses Rs.100B revenue milestone

• Q4 FY26 net revenue grew 28% YoY— to Rs.2,648 crores, with GMV growth also at 28% YoY for the quarter.
• Q4 FY26 EBITDA reached Rs.223 crores (8.4% margin)— up 67% YoY, the highest EBITDA margin the company has ever reported in a quarter.
• Q4 FY26 PAT stood at Rs.79 crores (3% margin)— up 313% YoY, one of the highest PAT margins in the company's history.
• FY26 full-year revenue crossed Rs.10,000 crores— the Rs.100B milestone, growing 26% YoY; GMV grew 28% YoY for the full year.
• FY26 full-year EBITDA was Rs.752 crores (7.5% margin)— up 59% YoY, the highest annual EBITDA margin ever; PAT grew 183% YoY to Rs.204 crores (2% margin).
• ROCE improved sharply to 21.2% in FY26— versus 11.3% in FY25, as revenue doubled from ~Rs.5,000 crores in FY23 to ~Rs.10,000 crores in FY26 while improving EBITDA margin from 5% to 7.5%.

Own brands surge 65% as beauty vertical crosses Rs.15,000 Cr GMV

• Beauty vertical FY26 GMV reached ~Rs.15,000 crores— up 27% YoY, with NSV of ~Rs.8,500 crores and a 9.6% EBITDA margin for the full year.
• Q4 FY26 beauty GMV grew 27% YoY— NSV grew 29% YoY, and EBITDA margin expanded 70 bps YoY to 10.3%.
• Beauty own brands portfolio delivered 65% YoY growth in Q4 FY26— Dot & Key nearing Rs.1,000 crores NSV for the reporting period; the three-pronged strategy scales big brands, incubates toward the Rs.150 crore+ threshold, and pursues acquisitions.
• House of Nykaa GMV for FY26: Rs.3,176 crores— up 50% YoY, serving 17 million consumers across 1,50,000 retail doors; beauty segment GMV within the house was Rs.2,788 crores, up 65% YoY (4x in three years).
• Dot & Key (largest brand) hit Rs.1,790 crores GMV— 13x in three years; ranked #1 sunscreen brand on Nykaa, Amazon, Flipkart, and Blinkit, with 53,000 offline doors across 1,000 cities.
• 200+ new brands launched on Nykaa in FY26— including Korean beauty (Etude, Innisfree, Anua, Missha), global derma (La Roche-Posay, It Cosmetics, Supergoop), and luxury labels (Chanel, La Prairie, SK-II); Korean beauty category grew 58% YoY, derma cosmetics GMV grew over 40% YoY.

Fashion delivers positive EBITDA in Q4; H&M and Nike partnerships drive acceleration

• Fashion GMV grew ~30% to nearly Rs.5,000 crores in FY26— NSV reached Rs.1,447 crores (growth ~30%); new customer acquisition increased 41% YoY.
• Q4 FY26 fashion NSV growth accelerated to 42% YoY— the segment reported positive EBITDA of 30 bps for the quarter, a key turnaround milestone.
• Full-year fashion EBITDA margin improved 570 bps— from -8.3% in FY25 to -2.6% in FY26, driven by improving customer retention and assortment expansion.
• H&M (onboarded Nov 2025) became the #1 brand on Nykaa Fashion— the Nike partnership (Feb 2026) includes end-to-end management of Nike's DTC digital platforms (nike.com and app) in India.
• Men's category grew >60% YoY, Kids >50%, Home >40%— ~1,300 brands added across categories in FY26; marketing strategy shifting toward creator economy and content-commerce integration.

Gross margin up 132 bps; each sub-business improving independently

• Gross margin improved 132 basis points in FY26— driven by House of Nykaa's strong performance and an improved service mix.
• Superstore EBITDA margin improved by >500 bps in FY26— to Rs.1,200 crores GMV, serving half a million retailers across 1,300 cities; better gross margin mix (D2C and owned brands) and lower fulfillment costs drove the improvement.
• Fixed asset turnover improved to 9.9x in FY26— from 9.1x in FY25; working capital days improved to 28 days (from 34 days); capex as a percentage of revenue stood at 1.4%.
• Beauty EBITDA margin improved 70 bps in FY26— to 9.6%; core retail platform has the highest margin profile and continues improving through marketing efficiencies and fulfillment cost reduction.
• Management noted BPC vertical has three sub-businesses with distinct margin profiles— multi-brand retail, own brands, and B2B superstore each improving independently, but faster B2B growth could be slightly dilutive at the aggregate level in the near term.

AI delivering marketing efficiency and personalization gains

• AI is delivering benefits on both top line and costs— with improved marketing funnel efficiency (cost per visit, conversions, engagement) and enhanced on-platform personalization, even for new customers with limited historical data.
• Marketing spend efficiency improved QoQ in Q4 FY25-26— driven by focused new customer acquisition efforts and better use of digital platforms (Meta, Google) aided by AI.
• New AI-driven consumer insights and ad properties are being launched— to maintain brand interest and mitigate any advertising revenue concentration risk from potential inflation-led brand pullback.
• Nykaa Now: ~75–80 rapid stores cover the top 7 metros— delivering 80–90% of relevant pin codes in 30 minutes to 2 hours; the focus in FY 2026-2027 is to market Nykaa Now more aggressively to drive consumer traction.
• Offline store expansion in FY 2026-2027 will be similar to FY 2025-2026— at 50–70 new doors per year, with management "aiming for 500 stores over the next 3–4 years" (tracking to add 170–180 stores over the next 2–3 years).

Cautious near-term view on macro; growth momentum intact in early FY27

• Management expressed a cautious FY 2026-2027 outlook— due to global concerns around inflation, high oil prices, and currency depreciation, but noted that consumption in "small luxuries" categories may be less impacted.
• April and May FY 2026-2027 have shown good growth momentum so far— management expects to sustain a growth rate similar to the "last few quarters" (H2 FY 2025-2026).
• No specific numerical margin or revenue guidance was provided for FY 2026-2027 or FY 2027-2028— a detailed house-of-brands plan will be shared at the annual day in about 1.5 months.
• Brands are currently avoiding price increases to consumers— but procurement cost pressure from higher fuel prices may lead to price hikes in FY 2026-2027; management views beauty as relatively immune given low ticket size and daily consumption habit.
• Management sees significant headroom for AUTC expansion over the next 2–3 years— through roughly FY 2028-2029, citing millions of consumers yet to experience Nykaa; AOV improvement expected via personalization and premiumization in coming quarters.
• Direct imports form a small portion of the beauty business— limiting forex exposure; operations are fully hedged for the next two to three months to mitigate near-term volatility.