Monte Carlo Fas. Q1 FY27 Results (NSE: MONTECARLO)
Signal: Loss reversed
The read
The quarter shows a modest revenue recovery of 7.6% YoY and a 250bps YoY improvement in EBITDA margin to -1.7%, but gross margin contracted 460bps to 49.2%, finance costs rose 12.4%, and PAT remained a ₹2,342 lakh loss; relative to the prior series, this is another Q1 loss after Q1FY26's ₹1,600 lakh loss rather than a confirmed earnings inflection.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹149.04 Cr | +7.6% | -46.8% |
| EBIT | ₹-19.41 Cr | -28.4% | |
| Net profit | ₹-23.42 Cr | -43.5% | |
| EPS | ₹11.3 | N/A | |
| EBIT margin | -1.7% |
P&L walk
Consolidated revenue of ₹14,904 lakh grew 7.6% YoY but fell 46.8% QoQ; gross margin contracted 460bps YoY to 49.2% as raw-material cost rose to 21.7% of revenue, while EBITDA margin improved 250bps YoY to -1.7% but remained negative and PAT was a ₹2,342 lakh loss.
Key positives
- Revenue increased 7.6% YoY to ₹14,904 lakh despite the seasonal QoQ decline of 46.8%.
- EBITDA margin improved 250bps YoY from -4.2% to -1.7%, although EBITDA remained a ₹247 lakh loss.
- Advertisement and business-promotion expense fell 34.8% YoY to ₹677 lakh, reducing its revenue intensity to 4.5% from 7.5%.
Key concerns
- Gross margin contracted 460bps YoY to 49.2% as cost of materials consumed increased to 21.7% of revenue from 19.5%; the filing does not disclose the driver.
- PAT remained negative at ₹2,342 lakh despite a ₹1,046 lakh other-income contribution and an ₹829 lakh tax credit.
- Finance costs rose 12.4% YoY to ₹1,242 lakh while EBIT was a ₹1,941 lakh loss.
- Employee benefits rose 14.5% YoY to ₹3,703 lakh, outpacing revenue growth of 7.6%.
- The verified positive EPS of ₹11.3 conflicts with the verified PAT loss of ₹2,342 lakh and the filing's printed negative EPS, requiring clarification.
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