Monte Carlo H1 revenue rose 6.3% while EBITDA fell 56.8%

Monte Carlo reported H1 FY27 revenue of Rs 411.4 crore, up 6.3% year on year (YoY), but operating EBITDA, or earnings before interest, tax, depreciation and amortisation, fell 56.8% to Rs 15.42 crore and it posted a Rs 22.3 crore net loss. The presentation attributes operating pressure to higher material and employee costs, while lower other income added to bottom-line pressure.

How did Monte Carlo's H1 FY27 earnings change?

Monte Carlo increased H1 FY27 revenue by Rs 24.2 crore from H1 FY26, while operating EBITDA declined by Rs 20.24 crore over the same period. H1, or the first half of the fiscal year, revenue reached Rs 411.4 crore versus Rs 387.2 crore a year earlier. Operating EBITDA was Rs 15.42 crore, compared with Rs 35.66 crore in H1 FY26.

The differing movement in the two measures is the central feature of the half-year result: revenue rose 6.3%, but operating EBITDA fell by more than half. Monte Carlo also reported a Rs 22.3 crore net loss for H1 FY27. The presentation does not provide an H1 FY26 profit-after-tax comparison, so the disclosed loss cannot be measured against a prior-year net result from this source.

Why did Monte Carlo's operating profit fall in H1 FY27?

Monte Carlo said higher material and employee costs weighed on H1 FY27 operating profitability, despite the Rs 411.4 crore revenue outcome. The presentation specifically identifies those two cost lines in explaining why operating EBITDA declined to Rs 15.42 crore from Rs 35.66 crore. It does not quantify either cost increase or provide a gross-margin figure in the supplied H1 performance page.

Lower other income added further pressure below operating profit, according to Monte Carlo's H1 FY27 commentary. That stated factor accompanied the Rs 22.3 crore net loss, following the 56.8% reduction in operating EBITDA. The presentation does not disclose the amount of other income in either H1 FY27 or H1 FY26, nor does it separately quantify finance or depreciation costs in the supplied material.

What did Monte Carlo's second quarter show?

Monte Carlo's Q2 FY27 revenue rose 5.5% YoY to Rs 262.4 crore, while operating EBITDA declined 31.7% to Rs 28.4 crore. Q2, or the second quarter, revenue was higher than both Rs 248.7 crore in Q2 FY26 and Rs 149 crore in Q1 FY27. The quarterly pattern shows that the company generated most of its H1 FY27 revenue in the second quarter.

Q2 FY27 operating EBITDA margin was 10.80%, down from 16.70% in Q2 FY26 but above the negative 8.68% reported for Q1 FY27. EBITDA improved from a Rs 12.9 crore loss in Q1 FY27 to a Rs 28.4 crore profit in Q2 FY27, although it remained below the Rs 41.5 crore reported in Q2 FY26. Monte Carlo reported Q2 FY27 profit after tax of Rs 1.2 crore.

Which product categories drove Monte Carlo's H1 FY27 gross sales?

Monte Carlo's H1 FY27 gross sales rose 13.8% YoY to Rs 627.4 crore, led by cotton sales of Rs 397.95 crore. Cotton increased 21.8% from Rs 326.67 crore in H1 FY26 and represented 63.4% of H1 FY27 gross sales, up from 59.2%. The presentation distinguishes gross sales by category from reported revenue, so the Rs 627.4 crore total should not be equated with Rs 411.4 crore H1 revenue.

Woollen gross sales fell to Rs 94.04 crore in H1 FY27 from Rs 106.24 crore in H1 FY26, reducing the category's mix share to 15.0% from 19.3%. Home textiles rose 10.4% to Rs 91.64 crore, kids increased 12.5% to Rs 34.46 crore, and footwear grew 91.6% to Rs 9.31 crore from a smaller base. Monte Carlo said woollen sales were expected to pick up from Q3 FY27.

What is Monte Carlo tracking for FY27?

Monte Carlo said H1 FY27 revenue growth of 6.3% was on track for its low-double-digit FY27 revenue-growth guidance, supported by a seasonally stronger second half. The company described the first half as a period that includes stock preparation and retailer dispatches ahead of winter. This means its stated FY27 delivery view relies in part on H2, or the second half, performance rather than the first-half result alone.

Management also reported that H1 FY27 home-textile growth was 11%, against its FY27 guidance of 20% to 25%, while footwear gross sales grew 92% against a goal to roughly double sales to Rs 12 crore to Rs 13 crore. Monte Carlo opened 24 exclusive brand outlets, or EBOs, and closed 15 during H1 FY27, compared with its FY27 plan to open 40 to 45 outlets in western and southern India. Agreements with Big Basket were signed, with sales scheduled to commence in Q3 FY27.

Conclusion

Monte Carlo's H1 FY27 result combined higher reported revenue of Rs 411.4 crore with a sharp reduction in operating EBITDA to Rs 15.42 crore and a Rs 22.3 crore net loss. Cotton's 21.8% gross-sales growth and 63.4% category share supported total gross sales of Rs 627.4 crore, but higher material and employee costs prevented the higher sales base from translating into higher operating profit.

The next disclosed markers are Q3 FY27 woollen sales, the start of Big Basket sales in Q3 FY27, and H2 delivery against low-double-digit FY27 revenue-growth guidance. Management also has 16 to 21 further EBO openings to achieve its 40 to 45 FY27 target after opening 24 in H1, while home-textile growth needs to move beyond the reported 11% H1 rate to meet the 20% to 25% guidance range.