Monte Carlo's Q1 Revenue Grows but Profitability Slumps Deeper into the Red
The apparel brand posted a 7.6% YoY revenue increase, but its net loss widened and profit margin deteriorated sharply from the previous quarter.
Monte Carlo Fashions reported a year-on-year revenue increase for Q1 FY27, but the quarter saw a significant net loss and a sharp sequential drop in profitability.
Monte Carlo Fashions has started FY27 with a mixed performance. While revenue grew compared to a weak first quarter last year, the company swung back to a net loss, with profitability eroding significantly from the preceding quarter.
The latest quarter saw revenue of ₹149.04 crore, a 7.6% improvement over Q1 FY26. However, profit after tax was a loss of ₹23.48 crore. This represents a sharp 565.9% decline from the small profit of ₹5.04 crore posted in Q4 FY26. Consequently, the net profit margin plunged to -15.8%, down from 1.8% in the previous quarter and also weaker than the -11.8% margin from the same period last year.
A look at the recent quarterly trajectory shows the inherent seasonality and volatility in the apparel business.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 149.04YoY +7.6% | 280.30 | 138.53 |
| Profit (₹ Cr) | -23.48YoY -44% | 5.04 | -16.32 |
| Net Profit Margin (%) | -15.8YoY -34% | 1.8 | -11.8 |
The table highlights the peak winter quarter (Q3) as the most profitable, while the first quarters of both years have been loss-making. On a trailing twelve-month (TTM) basis, which smooths out this seasonality, the company maintains an overall profit of ₹104.57 crore on revenue of ₹1,286.42 crore, translating to a healthier net profit margin of 8.1%.
Key Points
- The stock has declined 12.4% over the past year, underperforming the broader market sentiment.
- The company maintains a moderate balance sheet with a debt-to-equity ratio of 0.34 and a current ratio of 1.84.
- At a P/E of 13.4, the stock trades at a significant discount to the industry average P/E of 35.0.
The key challenge for Monte Carlo will be to improve its off-season profitability and build more consistent earnings throughout the year.
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· MONTECARLO
(BSE)
ISIN: INE950M01013
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