Monte Carlo Fashions Q2 FY27 results: net profit down 92.8% to ₹1.17 crore, revenue up 5.5%

How did Monte Carlo Fashions perform in Q2 FY27?

Monte Carlo Fashions reported consolidated revenue of ₹262.40 crore for Q2 FY27, up ₹13.70 crore or 5.5% from ₹248.70 crore in Q2 FY26. EBITDA fell ₹13.18 crore or 31.7% to ₹28.35 crore, and the EBITDA margin declined 5.9 percentage points to 10.8%.

Profit before tax was ₹1.46 crore, down ₹20.32 crore or 93.3% from ₹21.78 crore, while profit after tax was ₹1.17 crore, down ₹15.09 crore or 92.8% from ₹16.26 crore. Basic EPS was ₹0.56, compared with ₹7.84 in Q2 FY26.

Against Q1 FY27, revenue rose ₹113.36 crore or 76.1% to ₹262.40 crore and EBITDA moved to ₹28.35 crore from a loss of ₹12.93 crore. Profit after tax moved to ₹1.17 crore from a loss of ₹23.42 crore, and basic EPS moved to ₹0.56 from ₹11.30 negative.

On a standalone basis, Q2 FY27 revenue was ₹262.40 crore, up 5.5% from the year-ago quarter, while profit after tax was ₹1.10 crore against ₹16.17 crore. The board approved both standalone and consolidated unaudited results for the quarter and half year ended 30 September 2026.

What changed in Monte Carlo Fashions' costs and profit?

Total expenses rose ₹30.79 crore or 13.0% year on year to ₹266.95 crore, against revenue growth of ₹13.70 crore or 5.5%. Cost of materials consumed increased ₹4.27 crore or 12.2% to ₹39.37 crore, employee cost increased ₹4.76 crore or 13.4% to ₹40.35 crore, and other expenses increased ₹2.80 crore or 4.8% to ₹61 crore.

Finance costs were ₹14.66 crore, up ₹1.72 crore or 13.3% from ₹12.94 crore, while depreciation rose ₹2.19 crore or 13.6% to ₹18.24 crore. Other income fell ₹3.23 crore or 35.0% to ₹6.01 crore from ₹9.24 crore, adding to the decline in operating profit and profit before tax.

Tax expense was ₹0.29 crore, down ₹5.23 crore or 94.7% from ₹5.52 crore. There was no exceptional item in either Q2 FY27 or Q2 FY26. Management said higher material and employee costs and lower other income added pressure in H1 FY27.

The filing did not state that revenue growth itself was the cause of the higher cost lines. It showed that total expenses increased faster than revenue in Q2 FY26, while lower other income and higher operating costs coincided with the decline in profit before tax to ₹1.46 crore.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹411.44 crore, up ₹24.21 crore or 6.3% from ₹387.23 crore in H1 FY26. Total income rose ₹21 crore or 5.2% to ₹427.91 crore from ₹406.91 crore.

Profit before tax moved to a loss of ₹30.25 crore from a profit of ₹0.21 crore, while profit after tax moved to a net loss of ₹22.25 crore from a profit of ₹0.04 crore. Basic EPS was ₹10.73 negative, compared with ₹0.02 in H1 FY26.

Management said H1 revenue growth was led by cotton, but operating EBITDA declined 56.8% to ₹154 Mn. It also said a later festive season shifted meaningful consumer demand and winter sell-through towards Q3 FY27.

What do the balance sheet and cash flow show?

Total assets increased to ₹2,208.88 crore at 30 September 2026 from ₹1,920.47 crore at 31 March 2026, while total equity fell to ₹883.63 crore from ₹905.87 crore. Borrowings rose to ₹604.91 crore from ₹329.08 crore.

Inventories increased to ₹743.38 crore from ₹570.88 crore, trade receivables were ₹496.76 crore compared with ₹499.04 crore, and trade payables rose to ₹192.79 crore from ₹146.36 crore. Cash and cash equivalents increased to ₹4.86 crore from ₹1.59 crore.

H1 FY27 operating cash flow was an outflow of ₹206.77 crore, compared with an outflow of ₹184.67 crore in H1 FY26. Investing cash flow was an outflow of ₹20.75 crore against an inflow of ₹6 crore, while financing cash flow was an inflow of ₹230.8 crore compared with ₹181.45 crore.

Capital expenditure was ₹30.11 crore in H1 FY27, compared with ₹7.89 crore in H1 FY26. Management said the seasonal working-capital build was funded through higher borrowings and net debt, and that net debt excluding leases was expected to moderate as H2 collections improved.

How has Monte Carlo Fashions done over the last 8 quarters?

Revenue in the quarterly trend bottomed at ₹138.53 crore in Q1 FY26 and reached a peak of ₹608.38 crore in Q3 FY26. Q2 FY27 revenue of ₹262.40 crore was above ₹149.04 crore in Q1 FY27, and revenue has risen year on year in each of the last six quarters.

Profit after tax bottomed at a loss of ₹23.42 crore in Q1 FY27 and reached a peak of ₹106.99 crore in Q3 FY26. Q2 FY27 profit after tax was ₹1.17 crore, following ₹16.26 crore in Q2 FY26 and ₹5.03 crore in Q4 FY26.

The EBITDA margin bottomed at -8.7% in Q1 FY27 and peaked at 28.2% in Q3 FY25. It recovered to 10.8% in Q2 FY27 from 9.2% in Q4 FY26, but remained below 16.7% in Q2 FY26.

Management said the later festive season shifted a meaningful part of consumer demand and winter sell-through towards Q3 FY27. It expects woollen sales to pick up from Q3 FY27, while store expansion and improved H2 collections are central to the FY27 outlook.

What else did the company announce?

The board approved a corporate guarantee of ₹117 crore, together with interest, costs, charges, expenses and other monies, for MCFL Energy Projects Private Limited’s proposed 35 MW solar power project in Madhya Pradesh. The borrower is an unlisted wholly owned subsidiary.

The guarantee is in favour of IDBI Trusteeship Services Limited, acting as security trustee for Punjab National Bank. The company said the guarantee would be treated as a contingent liability and that it presently has no impact on the company.

The board also approved the standalone and consolidated unaudited results for the quarter and half year ended 30 September 2026, together with the statement of assets and liabilities, cash flow statement and limited review report. No dividend or fund-raising announcement was stated in the same-day filings.

What did Monte Carlo Fashions' management say?

Management said the later festive season shifted meaningful consumer demand and winter sell-through to Q3 FY27. It expects FY27 company revenue growth in the low double digits, home textiles revenue growth of 20–25%, and 40–45 new exclusive brand outlets in the West and South.

Management expects footwear gross sales to roughly double to ₹120–130 Mn in FY27 and said woollen sales were expected to pick up from Q3 FY27. It also expects net debt excluding leases to moderate as H2 collections improve.

Management said Q2 returns were lower, neutralising the higher Q1 effect, while H1 returns were similar year on year. It said Big Basket agreements had been signed and sales would commence in Q3 FY27, with advance talks continuing on other quick-commerce routes.

Management identified higher material and employee costs, lower other income, working-capital and funding strain, seasonal concentration, and returns and rebates as risks. It also said H1 performance must be read in the context of stock preparation and retailer dispatches ahead of winter.

How did Monte Carlo Fashions shares react?

From the price when the filing appeared, the stock fell 5.2% after five minutes, 4.5% after 15 minutes and 5.8% after 30 minutes. On the reaction day, it closed 4.1% lower than the previous close of ₹506.20.

By the next day’s close, the stock was down 2.4% from the pre-results close. The Garments & Apparels industry median moved up 0.6% on the reaction day and up 2.2% by the next day’s close, leaving Monte Carlo Fashions behind by 4.8 percentage points and 4.6 percentage points, respectively.

Earlier results-day moves were mixed: the stock fell 7.2% on 5 August 2026, rose 1.4% on 18 May 2026 and fell 4.9% on 28 January 2026. It had also fallen 4.9% on 14 November 2024, which was one of eight earlier reaction days listed.

How did other Garments & Apparels companies do?

Ten other Garments & Apparels companies that had filed for the quarter were compared. Their median revenue growth was 31.7%, while Monte Carlo Fashions’ revenue growth was 5.5%. Four peers grew slower than Monte Carlo Fashions and six grew faster.

Seven peers reported higher profit among the eight for which profit was compared. The peer figures were available as of 5 November 2026 and do not include Monte Carlo Fashions itself.