First Read: FSN Ecommerce Ventures "Key Takeaways from Annual Investor Day"

Research evidence excerpt

First Read: FSN Ecommerce Ventures "Key Takeaways from Annual Investor Day"

diluted) (Rs)

by FY30. This will be complemented by AI led personalization and beauty tech such as

UBS Cons.

skin scan, personalized recommendations and enhanced beauty discovery to improve

03/27E 1.79 1.62

conversion. 4) Partner Excellence: Nykaa continues to deepen brand partnerships 03/28E 3.18 2.65

through end to end platform capabilities including distribution, content and advertising. 03/29E 4.69 4.10

This is expected to drive 2.5x-3x growth in ad income by FY30 vs FY26, supported by

strong first party data and increasing brand engagement. Navin Killa

Analyst

Fashion: NSV guidance ahead of our estimates navin.killa@ubs.com

+852-2971 7594

Management expects NSV to scale 3x-3.5x over the next 4 years, implying CAGR of 32-

37% (vs UBSe 29%; cons 25%), driven by expansion in brand assortment, continued Ajay Raj Choudhary

Associate Analyst

customer acquisition+retention and scaling of core businesses. The segment achieved

ajay-raj.choudhary@ubs.com

breakeven in FY26 and is expected to reach "high single digit" margins by FY30 (UBSe +91-20-3055 5000

11%-12%; cons 8%) and 10%+ in steady state. Management indicated that >700bps

Aditya Chandrasekarof margin expansion will be driven by contribution margin expansion, and 500bps from

operating leverage to reach >10% steady state EBITDA margins.

aditya.chandrasekar@ubs.com

+91-22-6155 6056

House of Nykaa and eB2B

House of Nykaa brands’ GMV is expected to grow at 30% CAGR over the next 4 years,

reaching Rs50bn by FY30, with the share of established brands declining to 72% from

92% currently. This is to be driven by expansion into newer categories such as haircare,

bath and body, fragrance, nutraceuticals, mom and baby and male grooming. The eB2B