Cosmo First consumer loss reaches Rs 18 crore in Q2 FY27

Cosmo First’s consumer ventures posted a combined EBITDA loss of Rs 18 crore in Q2 FY27, up from Rs 12 crore a year earlier, as Cosmo Consumer began television advertising in July 2026 and Zigly grew to 48 centres. Zigly’s H1 FY27 revenue nevertheless rose 58% to Rs 37 crore, with an annualised gross merchandise value run rate of Rs 100 crore.

Why did Cosmo First’s consumer losses widen in Q2 FY27?

Cosmo First’s consumer EBITDA loss widened because Cosmo Consumer and Zigly continued to invest in expansion, with their combined loss rising to Rs 18 crore in Q2 FY27 from Rs 12 crore in Q2 FY26. Cosmo Consumer’s EBITDA loss doubled to Rs 4 crore from Rs 2 crore, while Zigly’s loss increased to Rs 14 crore from Rs 10 crore.

Cosmo Consumer attributed its Rs 4 crore Q2 FY27 EBITDA loss mainly to higher marketing spending following the launch of a television commercial campaign. Management said brand-building television advertisements began in July 2026, while Cosmo Consumer’s Q2 FY27 topline grew 70% year on year. The presentation does not disclose a break-even date for either consumer venture.

The consumer investment occurred as group EBITDA rose 38% year on year to Rs 177 crore in Q2 FY27 from Rs 128 crore. Flexible Packaging generated Rs 171 crore of EBITDA, Cosmo Specialty Chemicals contributed Rs 21 crore and Cosmo Plastech contributed Rs 3 crore, offsetting the consumer losses.

How is Cosmo Consumer expanding its branded film business?

Cosmo Consumer reported Rs 8.5 crore of revenue in Q2 FY27 and Rs 20 crore in H1 FY27, with first-half revenue at 2.6 times the corresponding prior-year period. Its annualised run rate was Rs 45 crore, excluding seasonal impact, while the Q2 FY27 EBITDA loss was Rs 4 crore.

The business sells window films, paint-protection films and ceramic coatings. Its window-film network covered more than 100 cities and towns, supported by more than 150 distributors and dealers, while the paint-protection-film network had more than 250 distributors and dealers. Four new paint-protection-film variants took the range to seven variants.

Cosmo Consumer also launched four Cosmo Car Care Centres to expand its automotive presence. The presentation estimates India’s paint-protection-film market at about Rs 500 crore and says it is growing 30% year on year; it estimates the heat-control-film and coating market at about Rs 1,000 crore annually, growing about 8% a year.

Management has set an FY30 revenue target of Rs 200 crore for Cosmo Consumer. The disclosed plan includes brand-building, dealer expansion, product launches and exports, which the presentation identifies as a higher-margin opportunity. This target is a management objective, not a reported result, and no FY27 revenue or profitability target was disclosed.

What is driving Zigly’s growth and network expansion?

Zigly’s H1 FY27 revenue rose 58% to Rs 37 crore from Rs 23 crore in H1 FY26, alongside an annualised gross merchandise value, or GMV, run rate of Rs 100 crore. GMV is the value of merchandise sold through the platform and differs from reported revenue.

Zigly operated 48 centres after adding eight during H1 FY27. Its offline-first model combines retail and services, with services representing 64% of the offline mix in H1 FY27. The business served more than 46,000 customers during the half year.

Gross margin increased to 49% in H1 FY27 from 48% in H1 FY26. Zigly also reported 93% year-on-year growth in private-label activity and launched more than 20 products during H1 FY27. The presentation does not disclose Zigly’s standalone first-half EBITDA.

Zigly acquired three hospitals, including Prolife Specialty Vet Clinic in Mumbai in September 2026. The acquisitions add veterinary services to its retail and pet-care ecosystem, but Cosmo First did not disclose the purchase consideration, acquired revenue, integration cost or expected earnings contribution.

How do consumer ventures compare with Cosmo First’s other businesses?

Cosmo First’s consumer ventures remain small relative to its films and business-to-business operations, despite faster growth rates. Packaging Films reported H1 FY27 sales of Rs 2,273 crore and EBITDA of Rs 313 crore, compared with Zigly revenue of Rs 37 crore and Cosmo Consumer revenue of Rs 20 crore.

Cosmo Specialty Chemicals generated H1 FY27 revenue of Rs 156 crore and EBITDA of Rs 39 crore, while Cosmo Plastech recorded H1 FY27 revenue of Rs 75 crore and a 7% EBITDA margin. By contrast, the two consumer businesses together reported a Rs 18 crore EBITDA loss in Q2 FY27, reflecting their earlier stage of investment.

At the consolidated level, Cosmo First’s Q2 FY27 net revenue increased 51% to Rs 1,388 crore and profit after tax rose 111% to Rs 99 crore. EBITDA included a Rs 24.8 crore write-back of additional customs duties at the US subsidiary after a duty refund, partly offset by a Rs 7 crore inventory loss following lower raw-material prices.

Cosmo First reduced net debt to Rs 1,057 crore in September 2026 from Rs 1,159 crore in March 2026, despite a Rs 148 crore increase in net working capital. Net debt to EBITDA declined from 2.4 times in March 2026 to 1.9 times in September 2026, and management said it remains focused on reducing net debt substantially over the next two years.

Conclusion

Cosmo First is funding consumer-business expansion through a period of higher near-term losses while established operations provide most of the group’s earnings. Cosmo Consumer’s television campaign and automotive-channel build-out coincided with a Rs 4 crore Q2 FY27 EBITDA loss, while Zigly’s 48-centre network, service mix and hospital acquisitions coincided with a Rs 14 crore loss.

The next disclosures to watch are Zigly’s progress beyond its Rs 100 crore annualised GMV run rate, the operating contribution from its three hospital acquisitions and Cosmo Consumer’s advance towards management’s FY30 revenue target of Rs 200 crore. Management’s stated plan to reduce net debt substantially over the next two years is also relevant after September 2026 net debt of Rs 1,057 crore.