Ethos Q1 Profit Surge Outpaces Strong Revenue Growth
India's largest luxury watch retailer posted a 51% jump in profit on a 33% revenue rise, with net profit margin expanding to a five-quarter high.
Ethos delivered robust Q1 FY27 results, with profit growth significantly outpacing strong revenue expansion. The company's net profit margin improved, signaling effective cost management amid healthy demand.
Ethos Limited, India's premier luxury watch retailer, started fiscal 2027 with impressive momentum. The company's first-quarter results show profit growth significantly outpacing a strong top-line increase, driven by an expansion in net profit margins.
Revenue for the quarter ended June 2026 came in at ₹461.7 crore, a solid 33.3% increase from the same period last year. Profit surged even faster, rising 50.7% year-on-year to ₹28.66 crore. This performance also marks a strong sequential improvement, with revenue up 11.5% and profit up 25.9% from the March 2026 quarter. The key driver was an improvement in profitability, with the net profit margin rising to 6.2% from 5.5% a year ago.
A look at the last five quarters shows a steady upward trajectory in both sales and earnings, with the latest quarter's profit margin at its highest level in this period.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 461.7YoY +33% | 414.01 | 346.32 |
| Profit (₹ Cr) | 28.66YoY +51% | 22.76 | 19.02 |
| Net Profit Margin (%) | 6.2YoY +13% | 5.5 | 5.5 |
Key Points
- The trailing-twelve-month (TTM) net profit margin stands at 6.1%, with TTM profit at ₹105.78 crore.
- The company maintains a strong, debt-free balance sheet with a return on capital employed (ROCE) of 16.81%.
- Over the past three years, the stock has delivered a compound annual growth rate (CAGR) of 25.1%, significantly outpacing its modest 3% gain over the last year.
While the stock trades at a price-to-earnings (P/E) ratio of 60.9, this represents a discount to the broader retail chains industry average. The Q1 results demonstrate Ethos's ability to convert robust demand for luxury timepieces into faster-growing profits, setting a positive tone for the fiscal year ahead.
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· ETHOSLTD
(BSE)
ISIN: INE04TZ01018
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