Can Nykaa Outpace Shein’s Comeback in India?

The re-entry of Shein into India is expected to increase competition in fashion, but Nykaa remains confident

Nykaa aims for EBITDA break-even in its fashion segment by FY26, despite slowed GMV growth (8% in Q3FY25) and flat order volumes.

Aggressive discounting by brands limited NSV growth to 25.8%, slightly trailing GMV expansion. Despite a 49% growth in Nykaa’s own beauty brands, rising discounts are putting pressure on margins.

Nykaa focuses on customer acquisition, premiumization, and careful monitoring of discounting trends. However, the uncertain turnaround in the fashion business and competitive pressures could weigh on margin expansion, keeping growth a balancing act.