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Gross Margin Benchmarks for Indian D2C FMCG 2026

By Sylvr Founder's Desk

No median is published. Named examples: Nykaa FY26 gross margin 45.1% (listed retailer, not D2C); Minimalist FY25 materials consumed ₹150.5 Cr on revenue ₹514.8 Cr, an implied ~71% before packaging and other COGS. Named beauty example: Minimalist FY25, implied ~71% before packaging and other COGS (see F241). No category range is published.

Sources: thecpglab.substack.com/p/i-studied-35-indian-d2c-brands-heres, multibagg.ai/market-pulse/articles/nykaa-fy26-margins-94581.

What's in the line

Gross margin here is revenue minus COGS (formulation + packaging + inbound freight). It does not include channel fees, last-mile fulfilment, or returns. That's why D2C founders calling gross margin 'profit' overestimates the picture.

Lifting gross margin

Three levers: formulation cost reduction (works at scale), packaging consolidation across SKUs, and vendor renegotiation once your annual cost of goods is large. Each takes months.

Sources

Every figure above is here. A page with a figure and no source here does not publish.

  1. thecpglab.substack.com/p/i-studied-35-indian-d2c-brands-heres. Open the source ↗
  2. multibagg.ai/market-pulse/articles/nykaa-fy26-margins-94581. Open the source ↗

Questions founders ask

How is gross margin different from CM1?

Gross margin = revenue − COGS. CM1 = gross margin − channel fees − fulfilment − returns. CM1 is the more honest single number for unit economics.

What gross margin does a brand need to reach EBITDA-positive?

The higher the gross margin, the more room is left after acquisition and overhead. A low gross margin needs very efficient acquisition or strong repeat.

Does private-label give better gross margin than co-pack?

It can, but it needs inventory commitment and quality oversight that many early-stage brands underinvest in.

Related answers

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