Lifestyle brand Nicobar eyes ₹1,000 crore revenue in 5-6 years

Lifestyle brand Nicobar is targeting 25-30% revenue growth this year and is working towards building a ₹1,000-crore business over the next five to six years, according to co-founder Raul Rai.

Nicobar also plans to open seven to ten stores annually, nearly doubling its network of 34 stores as the company looks to scale its physical retail and corporate gifting businesses. The company, which operates in a crowded home and lifestyle market, would not chase growth at the expense of its original proposition, Rai told Mint.

Founded by Rai and Simran Lal in March 2016, Nicobar has evolved from a contemporary clothing label into a broader lifestyle brand spanning apparel, homeware, travel accessories, jewellery and gifting. Nicobar is connected to the Eicher Group through family and corporate lineage.

The company is now looking to build on its physical retail network and corporate gifting business, while continuing to fund growth largely through internal accruals. “We stumbled into gifting. We didn't start off as a gifting brand but quickly became synonymous with it,” he said.

While it has taken Nicobar a decade to reach 34 stores, the next phase of growth will come much more quickly. “We have worked on a model where we can sustain the business on 25-30% growth year-on-year, with expanding profitability and free cash flow,” Rai added.

The company reported early double-digit earnings before interest, taxes, depreciation and amortisation (Ebitda) margins for about three years, he said.

In its most recent filings to the ministry of corporate affairs accessed via Tofler, the company's revenue from operations in FY26 rose to ₹211 crore from ₹172.2 crore a year ealier, and net profit increased to ₹15 crore from ₹13.6 crore.

Nicobar's longer-term ambition is to reach ₹1,000 crore in revenue over the next five to six years. Rai estimates that the company would need about 75 stores to support this scale, alongside growth in its digital and corporate channels. Each new store costs around ₹1 crore to set up.

The company has identified about 100 potential locations but remains selective, preferring premium high streets and established retail destinations over a rapid rollout.

Premiumization and opportunity

Nicobar's expansion comes as domestic consumers show greater willingness to spend on premium apparel and brands that offer quality, design and an in-store experience.

Deloitte India’s January 2026 report ‘The Home Reset’ estimated that consumers now allocate 10–15% of a home’s value to interiors. The report projects the home and household market to reach $260 billion by 2030.

The shift towards organised retail is also visible in retail leasing. India recorded an increase in leasing of retail real estate rise to 3.9 million sq. ft. during January-June 2026, a 20% growth over the same period in 2025 according to CBRE.
Emerging brands are also increasingly looking to physical stores for customer engagement and visibility. Nicobar, however, faces competition from both specialist home retailers and larger lifestyle chains.

Nestasia, for instance, founded in 2019, reported revenue of ₹177 crore in FY26 and operates about 15 stores. Fabindia, a more established retailer, with a similar business model with a home and clothing focus, and a wider portfolio has upwards of 350 stores and crossed a revenue of ₹1,236 crore in FY25.

Nicobar’s proposition sits across apparel and home, with a contemporary design language. Rai said it is also distinct from Good Earth, the luxury brand run by Lal’s mother, Anita Lal. The two businesses are separate and target different customer segments.
Nicobar's revenue is spread across several categories, with women's clothing contributing about 40%, men's clothing around 15%, home and gifting together about 40%, and jewellery and accessories accounting for 5-7%, Rai said. Online sales contribute roughly a third of revenue, with physical stores accounting for the largest share.

The company has seen demand from corporate customers, helped by a product range that extends beyond apparel into homeware and accessories. It is also exploring airport retail, where it sees potential for a gifting-led assortment, though it has not finalised a partnership.

Rai estimates that Nicobar has built a base of more than 300,000 customers over the past decade, including repeat buyers, against a potential market of about 20 million.

The founders have so far chosen not to raise external capital, with Rai saying the company prefers to fund expansion through its own cash flows. He believes outside growth pressure can push consumer brands to compromise on their original proposition.

“We can grow 100% in a year if we sacrifice our soul. So, if we have to choose between scale and soul, we’ll always choose soul," he said.