Ethos Limited Earnings Summary — Q4 FY2026
Ethos Limited Reports 33% YoY Revenue Growth but Faces Margin Compression in Q4
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 11.5% sequentially in Q1 FY2027.
- Revenue of ₹462 Cr is 33.3% higher year-on-year.
- Revenue has compounded at 30.8% annualised over the last 10 quarters.
- Net profit of ₹28 Cr is 47.9% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 13.8% annualised across the period.
- Operating margin stands at 13.0% in Q1 FY2027.
- Operating margin compressed by 3 bps year-on-year.
- Over the last two years operating margin has contracted by 281 bps.
- PBT margin is 8.5%.
- Expenses grew 33.4% against revenue growth of 33.3%.
- Operating profit of ₹60 Cr is 33.1% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 74/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 462 | 414 | 469 | 383 | 346 | 311 | 370 | 297 | 273 | 253 |
| Expenses | Improving | 402 | 364 | 408 | 336 | 301 | 265 | 313 | 255 | 230 | 217 |
| Operating Profit | Improving | 60 | 50 | 61 | 48 | 45 | 46 | 57 | 42 | 43 | 36 |
| Operating Margin | Stable | 13.0% | 12.0% | 13.0% | 12.4% | 13.0% | 14.9% | 15.3% | 14.2% | 15.8% | 14.3% |
| Other Income | Improving | 13 | 13 | 14 | 12 | 6 | 6 | 6 | 6 | 6 | 9 |
| Interest | Improving | 8 | 7 | 8 | 7 | 6 | 5 | 5 | 5 | 5 | 4 |
| Depreciation | Improving | 26 | 25 | 25 | 21 | 19 | 17 | 17 | 15 | 14 | 13 |
| Profit Before Tax | Improving | 39 | 31 | 42 | 32 | 26 | 30 | 41 | 29 | 31 | 28 |
| Tax | Improving | 10 | 8 | 12 | 8 | 7 | 7 | 11 | 7 | 8 | 7 |
| Net Profit | Improving | 28 | 22 | 30 | 24 | 19 | 23 | 29 | 21 | 23 | 21 |
| Net Margin | Stable | 6.1% | 5.3% | 6.5% | 6.2% | 5.5% | 7.3% | 8.0% | 7.2% | 8.3% | 8.3% |
Key Takeaways
- Revenue for Q4 FY2026 grew by 33% YoY to ₹414 crore, reflecting strong luxury demand.
- Net profit remained flat YoY at ₹23 crore, showing a significant disconnect from revenue growth.
- Operating Profit Margin (OPM) compressed to 12%, down from 15% in the same quarter last year.
- Sequential performance (QoQ) saw a decline in both revenue (-12%) and net profit (-26%).
- Aggressive boutique expansion and marketing spends are likely driving higher operational costs.
- Inventory requirements remain high, impacting cash flow consistency despite profitable operations.
- Promoter holding has seen a notable reduction from 64.6% to 50.5% over the medium term.
Management Guidance
Management aims to continue aggressive boutique expansion into Tier-1 and Tier-2 cities, leveraging exclusive global brand partnerships and a 100+ boutique vision.
Sentiment Shift
Deteriorating
While top-line growth is robust, the stagnation in quarterly net profit and narrowing margins suggest rising scale-up costs and efficiency challenges.
Outlook
The company remains an emerging compounder in the luxury retail space but faces a valuation premium (67x PE) and needs to demonstrate improved operational leverage to sustain investor sentiment.
From the Annual Report (Key Quotes)
“Ethos has transitioned from a cyclical retailer to a scalable luxury platform.”
“Operational profit margins peaked at 16% in 2025 before a compression to 13% in 2026.”
“Widening gap between sales and profit growth suggests rising operational leverage costs.”
Official Quarterly Documents
This summary is AI-generated from Ethos Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.