Monte Carlo Fashions Q1 FY27: Higher sales, but costs and seasonality kept profits under pressure

Revenue from operations was INR 149.0 crore, operating EBITDA was INR -12.9 crore (excluding other income), and PAT was INR -23.4 crore. EBITDA margin was -8.66% and PAT margin was -15.70%.

Management attributed the weak quarter primarily to higher processed B2B sales returns in Q1 FY27, which also affected reported revenue and margins. They stated the impact should normalize over subsequent quarters as returns even out across Q1 and Q2.

In FY26, cotton was 55.1%, woolen 27.7%, home textile 10.2%, kids 5.9%, and footwear 1.1%. In Q1 FY27, cotton was 71.8%, home textile 17.1%, kids 5.3%, woolen 4.3%, and footwear 1.5%.

Management stated it is working towards opening 40 to 45 Exclusive Brand Outlets during FY27, with emphasis on Western and Southern India.

Management reported cotton volumes increased 23% YoY, home textiles increased 42% YoY, and kids wear increased 5% YoY in Q1 FY27. Woolen volumes were down to 65 thousand from 70 thousand in Q1 FY26.

Management highlighted returns and discounts as key challenges. They also indicated input and packing cost inflation could lead to around 100 bps margin pressure versus FY26 for the full year.

Management stated a plan for around 50 MW DC solar with expected investment of about INR 147 to 150 crore. They said no investment had been made yet, commissioning could take 9 to 12 months, land is leased long-term, and an exit is possible post one year of commissioning as per agreement.