Monte Carlo Fashions reported a 92.8% year-on-year decline in standalone net profit to Rs 1.17 crore (US $0.12 million) in Q2FY27, compared with Rs 16.26 crore (US $1.72 million) in the corresponding quarter last year.
Revenue increased 5.5% to Rs 262.4 crore (US$27.67 million) from Rs 248.7 crore (US$26.24 million) in Q2FY26. However, EBITDA declined 31.7% to Rs 28.35 crore (US$2.99 million) from Rs 41.53 crore (US$4.38 million). The EBITDA margin contracted to 10.8% from 16.7%, while gross margin declined 589 basis points to 49.4% from 54.4%.
The company attributed the decline in profitability to higher material and employee costs, along with a shift in the festive season that pushed winter product sell-through towards the third quarter.
For H1FY27, revenue grew 6.3% year on year to Rs 411.4 crore (US $43.40 million). However, operating EBITDA declined 56.8% to Rs 15.4 crore (US $1.62 million).
The company reported a net loss of Rs 22.3 crore (US $2.35 million) for the half year, compared with a marginal profit in the corresponding period last year. Lower other income also contributed to the earnings pressure.
