Monte Carlo Fas. Q2 FY27 Results (NSE: MONTECARLO)
Signal: Margin pressure
The read
The key inflection is a seasonal revenue rebound to ₹26,240 lakh, +76.1% QoQ, but gross margin contracted 498bps YoY to 49.4%, reversing the prior-quarter recovery and driving EBITDA margin down 730bps YoY to 13.1%; H1FY27 remained loss-making at ₹2,225 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹262.4 Cr | +5.5% | +76.1% |
| EBIT | ₹16.12 Cr | -53.6% | |
| Net profit | ₹1.17 Cr | -92.8% | |
| EPS | ₹0.56 | -92.9% | |
| EBIT margin | 13.1% |
P&L walk
Revenue recovered to ₹26,240 lakh, +5.5% YoY and +76.1% QoQ, but gross margin contracted 498bps YoY to 49.4%, pulling EBITDA margin down 730bps to 13.1% and PAT down 92.8% to ₹117 lakh.
Key positives
- Revenue recovered to ₹26,240 lakh, +76.1% QoQ and +5.5% YoY, after the seasonally weak ₹14,904 lakh in Q1FY27.
- EBITDA margin recovered to 13.1% from approximately -1.5% in Q1FY27, a sequential improvement of about 1,470bps.
- Property, plant and equipment increased to ₹21,380 lakh from ₹16,857 lakh while depreciation rose 13.6% YoY to ₹1,824 lakh, producing a clean depreciation-to-asset-base check.
Key concerns
- Gross margin compressed 498bps YoY to 49.4% as raw-material and inventory cost increased to 50.6% of revenue from 45.6%; revenue grew but the company absorbed the cost pressure.
- PAT fell 92.8% YoY to ₹117 lakh despite 5.5% revenue growth, with EBITDA down 32.3% YoY to ₹3,436 lakh.
- H1FY27 operating cash flow was negative at ₹20,677 lakh versus negative ₹18,465 lakh in H1FY26, while inventory increased to ₹74,338 lakh from ₹57,088 lakh.
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