Monte Carlo Fashions Limited – Investor Presentation Summary

Key Operational Highlights

  • Gross sales grew 13.8% YoY to ₹6,274 Mn in H1 FY27
  • Total units sold: 6,378,000 in H1 FY27 vs 5,420,000 in H1 FY26
  • Exclusive Brand Outlets (EBOs) increased to 506 as of September 30, 2026 from 475 year ago
  • Multi-Brand Outlets (MBOs): 1,413 as of September 30, 2026 vs 1,511 year ago
  • National Chain Stores (NCS): 846 as of September 30, 2026 vs 778 year ago
  • Shop-in-Shops (SIS): 632 as of September 30, 2026 vs 536 year ago

Key drivers of operational performance: Expansion of cotton category, growth in footwear from small base, retail network expansion, and increased online penetration

Segment-wise Performance

Product Category Performance Q2 FY27:

  • Woollen: ₹834.1 Mn (21.8% share), 437,000 units
  • Cotton: ₹2,220.8 Mn (58.1% share), 2,362,000 units
  • Home textiles: ₹497.6 Mn (13.0% share), 575,000 units
  • Kids: ₹213.7 Mn (5.6% share), 253,000 units
  • Footwear: ₹57.4 Mn (1.5% share), 26,000 units

Product Category Performance H1 FY27:

  • Woollen: ₹940.4 Mn (15.0% share), 503,000 units
  • Cotton: ₹3,979.5 Mn (63.4% share), 4,428,000 units
  • Home textiles: ₹916.4 Mn (14.6% share), 969,000 units
  • Kids: ₹344.6 Mn (5.5% share), 438,000 units
  • Footwear: ₹93.1 Mn (1.5% share), 41,000 units

Brand Performance Q2 FY27:

  • Monte Carlo: ₹3,007.98 Mn (78.7% share)
  • Rock.it: ₹153.80 Mn (4.0% share)
  • Cloak & Decker: ₹115.21 Mn (3.0% share)
  • Luxuria: ₹49.04 Mn (1.3% share)
  • Monte Carlo Home: ₹497.56 Mn (13.0% share)

Explanation of significant changes in segment performance: Cotton category growth driven by expanded offerings and consumer demand, while woollen sales expected to pick up in Q3 FY27 due to seasonal patterns

Financial Highlights

Q2 FY27 Performance:

  • Revenue: ₹2,624.0 Mn, YoY growth 5.5%
  • Gross margin: 49.4% vs 54.4% in Q2 FY26 (498 bps decline)
  • Operating EBITDA: ₹283.5 Mn, YoY decline (31.7%)
  • EBITDA margin: 10.8% vs 16.7% in Q2 FY26 (589 bps decline)
  • PAT: ₹11.7 Mn, YoY decline (92.8%)
  • PAT margin: 0.4% vs 6.5% in Q2 FY26
  • Diluted EPS: ₹0.56 vs ₹7.84 in Q2 FY26

H1 FY27 Performance:

  • Revenue: ₹4,114.4 Mn, YoY growth 6.3%
  • Gross margin: 49.4% vs 54.2% in H1 FY26 (483 bps decline)
  • Operating EBITDA: ₹154.2 Mn, YoY decline (56.8%)
  • EBITDA margin: 3.7% vs 9.2% in H1 FY26 (546 bps decline)
  • PAT: (₹222.5) Mn vs ₹0.4 Mn in H1 FY26
  • PAT margin: (5.4%) vs 0.0% in H1 FY26
  • Diluted EPS: (₹10.73) vs ₹0.02 in H1 FY26

Drivers of financial performance: Lower gross margins, increased depreciation (13.6% YoY in Q2), higher finance costs (13.3% YoY in Q2), and seasonal working capital requirements

Key Risks: Margin pressure, seasonal demand patterns, working capital intensity, inventory management

Geographical Revenue Split

Q2 FY27 Regional Mix:

  • North: 45.19% vs 51.44% in Q2 FY26
  • East: 22.39% vs 19.57% in Q2 FY26
  • Central: 9.19% vs 8.48% in Q2 FY26
  • West: 4.87% vs 4.17% in Q2 FY26
  • South: 4.88% vs 4.20% in Q2 FY26
  • Online: 13.48% vs 12.14% in Q2 FY26

H1 FY27 Regional Mix:

  • North: 45.94% vs 50.62% in H1 FY26
  • East: 23.08% vs 20.40% in H1 FY26
  • Central: 9.13% vs 8.59% in H1 FY26
  • West: 4.61% vs 4.19% in H1 FY26
  • South: 5.08% vs 4.46% in H1 FY26
  • Online: 12.16% vs 11.74% in H1 FY26

Regional growth rates H1 FY27 vs H1 FY26: East (28.77%), Central (20.98%), West (25.07%), South (29.55%), Online (17.88%), North (3.25%)

Balance Sheet Snapshot

As of September 30, 2026:

  • Total equity: ₹8,836 Mn vs ₹8,340 Mn year ago
  • Short-term borrowings: ₹6,049 Mn vs ₹5,063 Mn year ago
  • Lease liabilities: ₹2,516 Mn vs ₹2,365 Mn year ago
  • Trade payables: ₹1,928 Mn vs ₹1,403 Mn year ago
  • Other liabilities: ₹2,759 Mn vs ₹2,363 Mn year ago

Asset Position:

  • PP&E, ROU, CWIP: ₹4,339 Mn vs ₹3,865 Mn year ago
  • Investments: ₹2,570 Mn vs ₹2,467 Mn year ago
  • Inventories: ₹7,434 Mn vs ₹6,469 Mn year ago
  • Trade receivables: ₹4,968 Mn vs ₹4,407 Mn year ago
  • Cash & bank: ₹460 Mn vs ₹385 Mn year ago
  • Other assets: ₹2,319 Mn vs ₹1,941 Mn year ago

Working Capital/Leverage Metrics: Inventory and receivables comprised ~56% of assets, net debt increased to ₹3,020 Mn

Financial Health Insights: Seasonal working capital build-up ahead of winter season, increased borrowing to support inventory requirements

Capex & Cash Flow Health

H1 FY27 Cash Flow:

  • Capital Expenditure: ₹298.4 Mn (net)
  • Operating cash flow: (₹2,067.7) Mn
  • Free Cash Flow: Not Specified
  • Change in inventories: (₹1,725.0) Mn
  • Change in receivables: ₹23.1 Mn
  • Net borrowings: ₹2,756.3 Mn

Investment Rationale: Focus on retail expansion, working capital requirements for seasonal inventory build-up

Strategic & R&D Initiatives

Investments in Innovation: Expansion into compact 500–1,000 sq ft store formats in West and South regions, portfolio diversification beyond winterwear

Expected impact on growth: Broader addressable market across seasons and categories

Strategic Rationale: Convert portfolio breadth into sustained profitable growth, improve store and inventory productivity, scale newer categories responsibly

Industry Trends & Business Environment

Macro/Industry Trends: Later festive season shifting consumer demand and winter sell-through towards third quarter

Impact on Company: Q2 performance affected by delayed seasonal demand, expecting stronger performance in Q3

Management Commentary & Growth Outlook

Strategic Outlook: "Our priority remains clear: to convert the breadth of our portfolio into sustained, profitable growth. This means strengthening the core Monte Carlo brand, improving store and inventory productivity, scaling newer categories responsibly and deploying capital with discipline."

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Seasonal nature of business, working capital management, margin pressures, retail expansion execution

Seasonal Business Model

  • Q3 accounted for 47% of FY26 revenue vs 45% in FY25
  • Winter remains central to business, contributing nearly half of annual revenue
  • Working-capital days improved from 176 in FY25 to 146 in FY26
  • EBO network expanded to 497 stores in FY26, up 5.5% YoY
  • Annual weighted average gross revenue per store recovered to ₹14.2 Mn in FY26