Ethos Limited revenue rises 30% as profit reaches Rs 29.3584 crore

Ethos Limited reported revenue from operations of Rs 498.9029 crore for the quarter ended September 30, 2026, up 30% from Rs 383.3925 crore a year earlier, while consolidated net profit increased to Rs 29.3584 crore from Rs 23.7923 crore. Revenue also rose from Rs 461.7052 crore in the June 2026 quarter.

How did Ethos perform in the September 2026 quarter?

Ethos increased total income to Rs 511.4211 crore in the September 2026 quarter from Rs 394.9521 crore a year earlier, while profit before tax rose to Rs 39.4096 crore from Rs 31.7382 crore. Revenue from operations contributed Rs 498.9029 crore, while other income was Rs 12.5182 crore.

Ethos’s quarterly net profit rose by Rs 5.5661 crore year on year and by Rs 0.6947 crore from June 2026. Basic and diluted earnings per share, not annualised, were Rs 10.77, compared with Rs 8.78 a year earlier and Rs 10.51 in the preceding quarter. Profit attributable to owners was Rs 28.8084 crore and non-controlling interests accounted for Rs 0.55 crore.

The board approved the consolidated unaudited results on November 12, 2026, following audit committee review. Walker Chandiok & Co LLP reviewed the results under Indian Accounting Standard 34, or Ind AS 34, and issued an unmodified conclusion, while noting that a review is narrower in scope than an audit.

What changed in Ethos’s costs and profitability?

Ethos’s total expenses rose to Rs 472.3983 crore from Rs 361.9957 crore in the September 2026 quarter, broadly tracking the 30% rise in revenue from operations. Purchases of stock-in-trade increased to Rs 428.0404 crore from Rs 318.4368 crore, while the inventory-change line was negative Rs 74.7697 crore against negative Rs 46.0755 crore a year earlier.

Employee benefits expense increased to Rs 41.1527 crore from Rs 28.1675 crore, depreciation and amortisation rose to Rs 26.571 crore from Rs 20.9671 crore, and other expenses reached Rs 43.9723 crore from Rs 33.9539 crore. Finance costs were Rs 7.4316 crore, above Rs 6.5459 crore a year earlier but below Rs 8.0152 crore in June 2026.

Ethos recorded a Rs 0.3868 crore share of profit from associates and the joint venture in the September quarter, compared with a Rs 1.2182 crore share of loss in September 2025 and a Rs 1.6289 crore loss in June 2026. Tax expense rose to Rs 10.0512 crore from Rs 7.9459 crore, resulting in net profit of Rs 29.3584 crore.

Ethos reports retail trading of premium and luxury watches, accessories and other luxury items, including related after-sales services, as one operating segment under Ind AS 108. The filing therefore provides no separate revenue or profit figures for watches, accessories, services, physical retail or digital activities in the September 2026 quarter.

What do Ethos’s first-half results and cash flow show?

Ethos generated revenue from operations of Rs 960.6081 crore in the half year ended September 30, 2026, compared with Rs 729.7105 crore in the corresponding 2025 half. Total income rose to Rs 986.4636 crore from Rs 747.1061 crore, while net profit increased to Rs 58.0221 crore from Rs 42.8114 crore.

First-half profit before tax was Rs 78.5397 crore, compared with Rs 57.8543 crore a year earlier, and basic and diluted earnings per share were Rs 21.28 against Rs 16.54. The share of loss from associates and the joint venture narrowed to Rs 1.2421 crore from Rs 2.3288 crore in the prior-year half.

Ethos reported net cash used in operating activities of Rs 5.7142 crore for the six months ended September 30, 2026, compared with net cash generated of Rs 60.4878 crore a year earlier. Inventory increased by Rs 126.1002 crore, versus Rs 69.1091 crore in the prior-year period, and income tax paid was Rs 23.1734 crore.

Investing activities generated Rs 55.7918 crore in the 2026 half year, including Rs 57.4994 crore from bank deposits with original maturity above three months and Rs 30.4801 crore of interest received. Financing activities used Rs 48.6175 crore, including Rs 27.6734 crore of lease-principal payments and Rs 20.8364 crore of interest paid on lease liabilities.

How did Ethos’s financial position and rights-issue use change?

Ethos’s total assets stood at Rs 2,424.7139 crore on September 30, 2026, compared with Rs 2,197.1932 crore on March 31, 2026. Inventories rose to Rs 821.5887 crore from Rs 695.4882 crore, right-of-use assets increased to Rs 401.2854 crore from Rs 279.172 crore, and total equity reached Rs 1,701.4071 crore from Rs 1,664.3837 crore.

Cash and cash equivalents were Rs 145.5397 crore at September 30, 2026, marginally above Rs 144.0794 crore at March 31, 2026. Other bank balances declined to Rs 239.5369 crore from Rs 517.5664 crore, while non-current lease liabilities rose to Rs 381.8063 crore from Rs 262.6194 crore.

Ethos completed a rights issue in the September 2025 quarter, raising Rs 409.905 crore through 22,77,250 equity shares issued at Rs 1,800 each. By September 30, 2026, it had used Rs 209.7896 crore of proceeds, including Rs 206.0347 crore for working-capital requirements and Rs 3.7549 crore for issue-related expenses.

Rs 200.1154 crore remained unutilised at September 30, 2026, comprising Rs 103.9653 crore for working capital, Rs 96.1148 crore for general corporate purposes and Rs 0.0353 crore of issue expenses. The filing says the unutilised proceeds were temporarily invested in deposits. Separately, Ethos acquired 1,89,480 shares in Ethos Lifestyle Private Limited for about Rs 20.26 crore on April 30, 2026, raising its holding to 77.42% from 75.05%.

Conclusion

Ethos delivered higher revenue and profit in the September 2026 quarter, with revenue from operations increasing by Rs 115.5104 crore year on year and net profit rising by Rs 5.5661 crore. First-half reported earnings also increased, but the Rs 126.1002 crore inventory build contributed to an operating cash outflow of Rs 5.7142 crore.

The next disclosed matters to watch are the use of Rs 200.1154 crore of unutilised rights-issue proceeds and the proposed reappointment of Managing Director Pranav Shankar Saboo. The reappointment requires shareholder approval and is proposed for three years from April 1, 2027 to March 31, 2030.