Ethos Q1 FY27 Results (NSE: ETHOSLTD)

3 Aug 2026 · Analysis by Alpha Inflection

Signal: Margin expansion

The read

The key inflection is a sharp operating-margin recovery to 16.2% from 13.0% YoY after four consecutive quarters of YoY margin contraction, allowing PAT to rise 50.7% to ₹2,866.37 lakh on 33.3% revenue growth; however, other income of ₹1,333.73 lakh contributed 32.7% of PBT, EPS growth lagged PAT because of dilution, and associate/JV losses reached ₹162.89 lakh.

P&L walk

Revenue rose to ₹46,170.52 lakh, up 33.3% YoY and 11.5% QoQ, while EBITDA margin expanded to 16.2% from 13.0% YoY; depreciation increased 37.1% YoY, finance costs rose 40.5%, and PAT grew 50.7%, aided by other income of ₹1,333.73 lakh and partly offset by ₹162.89 lakh of associate/JV losses.

Key positives

• Revenue reached ₹46,170.52 lakh, up 33.3% YoY and accelerating from +26.7% in Q1FY26.
• EBITDA margin expanded to 16.2%, up 320bps YoY and 420bps QoQ, reversing the 13.0% margin in Q1FY26 and 12.0% in Q4FY26.
• Gross margin improved 74bps YoY to 29.3% as net stock-in-trade cost declined to 70.7% of revenue from 71.4%.
• The retail network reached 102 stores, following the opening of a new watch boutique in Vizag.

Key concerns

• Other income of ₹1,333.73 lakh grew 128.5% YoY and represented 32.7% of consolidated PBT, making the 50.7% PAT growth less purely operational.
• Employee benefits expense rose 55.6% YoY to ₹3,699.82 lakh, faster than revenue growth of 33.3%, increasing employee-cost intensity to 8.0% of revenue.
• Finance costs increased 40.5% YoY to ₹801.52 lakh, also faster than revenue growth.
• EPS growth of 35.2% materially lagged PAT growth of 50.7% because of the rights issue share-count increase.
• Associate and joint-venture losses widened 46.7% YoY to ₹162.89 lakh.

Earnings quality: includes non-operating other income

View original filing

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