Ethos Quarterly Results Q1 FY26

Ethos Ltd, a prominent luxury watch and accessories retailer in India, has released its Q1 FY26 financial results, revealing notable top-line growth alongside pressures on profitability. Below is a refined breakdown of highlights, challenges, and outlook for this quarter, with supporting data and context.

Ethos Ltd Q1 FY26: Summary of Performance

In Q1 FY26, Ethos reported total revenue of ₹346.32 crore, representing a year-on-year (YoY) increase of about 26.7%. mint+2Devyara+2 The company’s consolidated net profit (PAT) for the quarter came in at ₹19.02 crore, down approximately 16.6% YoY, largely driven by cost pressures and unfavourable currency movements. Earnings per share (EPS) stood at ₹7.11 (or in some reports ~₹7.77), reflecting a decline from the prior year.

While revenue growth was healthy, profitability contracted due to rising expenses and foreign exchange impacts. These results underscore the challenge of converting top-line momentum into net earnings in a high-cost environment.

• Revenue in Q1 FY26 stood at ~₹346 crore (up ~26.7% YoY). mint+2Devyara+2
• Some alternative sources (e.g. Kotak) report revenue of ₹352.15 crore (YoY growth ~25.9%) — this discrepancy may reflect differences in recognition or adjustments.
• Total billings growth was in line with revenue growth (quoted ~26% YoY in your original).

Ethos reported a Same-Store Sales Growth (SSSG) of 17.6%, indicating healthy demand in existing store locations.
The blended Average Selling Price (ASP) remained largely stable, around ₹2,13,000 (as per your original). While I did not find an independent confirmation of this exact ASP number in public sources, the stability of ASP is consistent with a premium positioning strategy in luxury retail.

Despite the robust growth in revenue, Ethos experienced margin pressure this quarter. The key drivers were:

• Rising expenses: Total operating costs increased significantly (by ~30–31% YoY in many sources), outpacing revenue growth. AlphaStreet
• Forex / currency impact: The company cited adverse effects from currency fluctuations as a contributing factor to profit erosion. Devyara+1
• Compressing margins: The operating margin dropped (e.g. in Mint reporting, operating profit was ₹27.10 crore with an implied operating margin of ~7.8%) and net income fell. mint

In effect, Ethos’ operating leverage came under strain this quarter, highlighting how increases in cost structure (store expansion, fixed overheads, marketing) and external shocks (currency volatility) can erode profitability even when revenue is rising.

Despite the challenges in Q1, the outlook remains cautiously optimistic among market observers. Key factors influencing sentiment include:

• Retail & store expansion: Ethos continues to invest in expanding its retail footprint, especially in high-potential markets. Devyara+1
• Brand partnerships and omni-channel strategy: The company’s alliances with global luxury watch brands and emphasis on omnichannel presence are expected to strengthen its competitive position. Simply Wall St+1
• Analyst expectations: Some analyst models suggest meaningful upside from current stock prices, assuming improvements in margin discipline and execution. Devyara+1

However, investors are likely to pay close attention to how Ethos manages cost control, mitigates currency risk, and sustains growth from its expansion efforts.

Key Takeaways

• Revenue growth: ≈ ₹346.3 crore in Q1 FY26 (~26.7% YoY).
• Net profit: ₹19.02 crore, down ~16.6% YoY.
• SSSG: ~17.6%, indicating solid performance in existing stores.
• ASP stability: Blended ASP reportedly steady (~₹2,13,000) though independent confirmation is limited.
• Challenges: Profitability was constrained by higher operating costs and forex headwinds.

In summary, Ethos demonstrates strong top-line momentum and solid brand positioning in the luxury watch retail sector. The near-term challenge is translating that momentum into consistent bottom-line growth, especially given cost pressures and currency volatility. For market participants, the ability to monitor margin trends, store-level performance, and strategic capital deployment (e.g. new stores, omnichannel investments) will be key signals.