Ethos H1FY27 revenue rises 31.6% as PAT after minority interest grows 34.6%

Ethos reported consolidated revenue from operations of Rs 960.6 crore in H1FY27, up 31.6% year on year, while profit after tax after minority interest rose 34.6% to Rs 56.9 crore. Reported earnings before interest, tax, depreciation and amortisation, or EBITDA, margin remained 15.0% for the half year, despite a lower Q2FY27 margin of 14.3%.

How did Ethos perform in H1FY27?

Ethos increased H1FY27 consolidated revenue from operations by Rs 230.9 crore to Rs 960.6 crore, compared with Rs 729.7 crore in H1FY26. Reported EBITDA rose 31.5% to Rs 147.9 crore from Rs 112.4 crore, while reported profit before tax increased 35.8% to Rs 78.5 crore from Rs 57.9 crore.

Reported profit after tax rose 35.7% to Rs 58.0 crore in H1FY27 from Rs 42.8 crore in H1FY26. Profit after tax after minority interest, which deducts the share attributable to non-controlling holders, was Rs 56.9 crore against Rs 42.3 crore a year earlier. Basic earnings per share rose to Rs 21.3 from Rs 16.5, and the post-minority-interest margin increased to 5.8% from 5.7%.

What changed in Ethos's second-quarter margins?

Ethos reported Q2FY27 revenue of Rs 498.9 crore, up 30.1% from Rs 383.4 crore in Q2FY26 and 8.1% from Rs 461.7 crore in Q1FY27. Reported Q2 EBITDA increased 20.8% to Rs 73.0 crore, slower than revenue growth, and EBITDA margin declined by 1 percentage point year on year to 14.3% from 15.3%.

Quarterly reported profit before tax was Rs 39.4 crore, up 24.2% from Rs 31.7 crore in Q2FY26 and 0.7% from Rs 39.1 crore in Q1FY27. Q2 profit after tax after minority interest reached Rs 28.9 crore, rising 23.8% year on year and 2.6% sequentially. Its margin was 5.6%, compared with 5.9% in both Q2FY26 and Q1FY27.

The half-year margin result differed from the quarterly movement because H1FY27 reported EBITDA margin stayed at 15.0%, matching H1FY26. Gross profit margin expanded to 29.3% from 28.8%, while employee cost rose to Rs 78.2 crore from Rs 51.9 crore and other expenses increased to Rs 81.0 crore from Rs 63.1 crore. The presentation also records Rs 4.5 crore of one-time expenditure for the Grand Prix d’Horlogerie de Genève exhibition in Q2FY27.

How did associate results affect Ethos's profit before tax?

Ethos's reported H1FY27 profit before tax included a Rs 1.2 crore loss from joint ventures and associates, compared with a Rs 2.3 crore loss in H1FY26. The presentation identifies Pasadena and Silvercity Brands AG as associates. It records a Rs 1.6 crore associate loss in Q1FY27, followed by a Rs 0.4 crore profit contribution in Q2FY27.

On the basis excluding Indian Accounting Standard, or Ind AS, 116, Ethos reported H1FY27 consolidated EBITDA of Rs 105.4 crore, up 31.4%, and profit before tax of Rs 85.7 crore, up 32.4%. EBITDA margin on this basis was 10.7% in both H1FY27 and H1FY26. These figures differ from reported H1FY27 EBITDA of Rs 147.9 crore and reported profit before tax of Rs 78.5 crore.

The reconciliation excluding Ind AS 116 shows standalone profit before tax of Rs 80.1 crore, Ethos Lifestyle profit before tax of Rs 6.8 crore, a Rs 1.4 crore Silvercity share of loss and Rs 0.2 crore from other entities. Together, these components result in consolidated profit before tax of Rs 85.7 crore. This presentation separates the contribution of Ethos Lifestyle and associate holdings from the standalone operation.

What drove Ethos's sales and store expansion?

Ethos reported same-store sales growth of 15.3% in H1FY27 alongside its 31.6% consolidated revenue increase. Average selling price was Rs 2.22 lakh, compared with Rs 2.18 lakh in H1FY26. Luxury and high-luxury watches accounted for 71% of sales in H1FY27, one percentage point below the 72% share in H1FY26.

The retail network reached 106 boutiques across 35 cities as of 12 November 2026, compared with 94 boutiques in 30 cities at the end of FY26. Ethos opened 12 boutiques during FY27 to that date, comprising two exclusive boutiques and 10 multi-brand boutiques. The five new markets were Agra, Faridabad, Amritsar, Visakhapatnam and Calicut.

The 106-boutique network consisted of 102 watch boutiques and four lifestyle boutiques, representing more than 100 brands, including 72 exclusive brands. Ethos added 27 watch brands during H1FY27. The expansion combined a larger store network with entry into five additional cities and a broader watch offering.

What is Ethos planning after H1FY27?

Ethos introduced Hour Studio as an online retail format for watches priced from Rs 10,000 to Rs 2 lakh. Management said it plans to open its first Hour Studio boutique during the current year. The presentation does not disclose a target store count for the format.

Through Ethos Lifestyle, the company opened its third exclusive Rimowa boutique in Bengaluru during the period, taking the brand's India presence to three boutiques. The other listed Rimowa locations are Mumbai and New Delhi, while Messika operates from The Chanakya in New Delhi. Management described Rimowa and Messika as complementary global luxury brands in its expansion beyond watches.

Management said its operating priorities include exclusive brand partnerships, customer experience, operational capabilities and disciplined expansion. The presentation does not provide FY27 revenue, profit or margin guidance. It does identify the first Hour Studio boutique and continuing network development as planned operating milestones.

Conclusion

Ethos delivered growth across its H1FY27 consolidated income statement, with revenue rising 31.6% to Rs 960.6 crore, reported EBITDA increasing 31.5% to Rs 147.9 crore and profit after tax after minority interest growing 34.6% to Rs 56.9 crore. The 15.0% reported H1 EBITDA margin matched the prior-year period, although the Q2FY27 margin was 1 percentage point lower year on year.

What to watch next is the planned first Hour Studio boutique during the current year and further retail execution after the network reached 106 boutiques in 35 cities on 12 November 2026. Subsequent disclosures will also show whether same-store sales growth of 15.3%, average selling price of Rs 2.22 lakh and associate results after the Rs 1.6 crore Q1FY27 loss continue to change.