The company reported a 6.3 per cent year-on-year increase in revenue to ₹411.4 crore (~$43.56 million) in the first half of FY27, but profitability weakened sharply due to higher material and employee costs, resulting in a net loss of ₹22.3 crore (~$2.36 million).
Operating EBITDA fell 56.8 per cent to ₹15.4 crore (~$1.63 million) in the six months ended September 2026, compared with ₹35.7 crore (~$3.78 million) a year earlier.
The company attributed the pressure on profitability to increased operating costs and lower other income.
In the second quarter (Q2 FY27), revenue rose 5.5 per cent year on year to ₹262.4 crore (~$27.78 million), while operating EBITDA declined 31.7 per cent to ₹28.4 crore (~$3.01 million). The company reported a profit after tax of ₹1.2 crore (~$0.13 million) for the quarter.
Cotton segment drives sales growth
The company’s gross sales increased 13.8 per cent to ₹627.4 crore (~$66.43 million) during H1 FY27, led by its cotton segment, which recorded 21.8 per cent growth.
Cotton accounted for 63.4 per cent of gross sales, compared with 59.2 per cent in the year-ago period. Home textiles and kidswear sales grew 10.4 per cent and 12.5 per cent, respectively, while footwear sales surged 91.6 per cent from a low base.
Seasonal demand and debt position
Monte Carlo said the first-half performance was affected by the shift in festive demand and winterwear sales towards the third quarter(Q3), which is seasonally stronger for the company. Q3 accounted for 47 per cent of its annual revenue in FY26.
The company’s net debt, excluding lease liabilities, increased to ₹302 crore (~$31.98 million) as of September 2026, from ₹74.2 crore (~$7.86 million) at the end of March 2026, reflecting seasonal working-capital requirements. Capital expenditure stood at ₹33.16 crore (~$3.51 million) during the first half.
For FY27, Monte Carlo is targeting low double-digit revenue growth, supported by stronger second-half demand. It also plans to expand its exclusive brand outlet network, targeting 40-45 new stores during the financial year.
India’s Monte Carlo Fashions’ H1 FY27 revenue rose 6.3 per cent year on year to ₹411.4 crore (~$43.56 million), but higher operating costs pushed it into a net loss of ₹22.3 crore (~$2.36 million).
The company expects stronger second-half demand, driven by seasonal winterwear sales, and is targeting low double-digit revenue growth in FY27.
Fibre2Fashion News Desk (CG)
