Analyst Concall
FSN E-Comm sees EU, US FTAs cut import cost of beauty pdts
This story was originally published at 20:13 IST on 5 February 2026
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--FSN E-Comm: Brands from emerging categories keen to join us
--CONTEXT: Comments by FSN E-Comm mgmt in post earnings analyst concall
--FSN E-Comm: Hope to see more marquee launches like H&M in coming qtrs
--FSN E-Comm: Nykaa Now seeing significant percentage of orders
--FSN E-Comm: Going to expand number of operational hours for Nykaa Now
--FSN E-Comm: See AI helping grow Nykaa's buyer base
--FSN E-Comm: India-EU deal beneficial, help import beauty pdts for cheaper
By Pallavi Singhal and Nandini Sinha
NEW DELHI/ MUMBAI – FSN E-Commerce Ventures Ltd., which operates under the brand name Nykaa, expects emerging trade agreements between India and key global markets such as the European Union and the US materially benefit its beauty business by lowering import costs and improving product affordability.
According to the management, the India–EU trade deal could be particularly beneficial given the large share of global beauty brands sourced from Europe. "A lot of beauty brands come out of Europe...that can definitely be a big benefit not only to us as an importer but also to a lot of our brand partners who are currently importing from the EU zone," the management said in a post-earnings conference call with analysts. The management added that lower tariffs could allow brands to "pass some of that advantage onto the consumer" by reducing price multipliers and making products "more equitable on price to what it is in the US and in European markets."
On the US side, the company said it already imports several beauty brands from the market and any reduction in duties or regulatory friction could be a net positive. While FSN E-Commerce does not disclose the share of imports in its revenue mix, the management noted that "a substantial, significant percent of our revenues" comes from international brands manufactured outside India, indicating scope for meaningful benefit once trade terms become clearer.
Beyond trade-led tailwinds, the company said they see artificial intelligence also expanding Nykaa's buyer base. The management said advances in AI-led discovery and personalisation could improve conversion and customer acquisition efficiency. "With the introduction of AI...the ability to do a lot of personalised journeys that can improve conversion makes us believe that one can have better outcomes going forward," the company said, while noting that digital platforms and ecosystem partners are rapidly evolving to use AI in their systems.
The management also said Nykaa Now, its quick-commerce offering, is gaining traction across key markets. "There is now a significant percentage of orders in cities where Nykaa Now is live that are being serviced through Nykaa Now," the management said, adding that the company plans to expand the number of operational hours for the service to further increase its share of orders. The company said margins per order remain broadly similar to the core platform, and any potential dilution in average order value could be offset by higher purchase frequency.
On the fashion platform, FSN E-Commerce said it is seeing strong interest from brands across emerging categories such as men's wear, kids wear, accessories, and home.
The company also expressed optimism about future marquee brand launches, following the successful debut of H&M on Nykaa Fashion. The management said the launch has strengthened the platform's premium positioning and delivered strong early traction. "We hope many more marquee launches and many more wins to come in the coming quarters," it said.
The company announced its earnings post-market hours on Thursday. Shares of the online retailer closed at INR 258.29 on the National Stock Exchange, up 3% from the previous session. End
Edited by Ashish Shirke
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