Monte Carlo Fashions Ltd

Business overview

• Core apparel brand Monte Carlo; segments Cotton, Woolen, Home Textiles, Kids.
• Two Ludhiana facilities; in-house design team of 26+ designing ~900 SKUs monthly.
• Brands include Monte Carlo, Rock It, Cloak & Decker, Luxuria.
• Pan-India distribution via EBOs, MBOs, national chains and e-commerce.

Operational highlights

• Q1 FY27 channel counts: EBO-COCO 163; EBO-FOFO 333; MBO 1,268; NCS 659; SIS 593.
• Total Q1 FY27 online sales: INR 53 Mn.
• Footwear sales amounted to INR 196 Mn in FY26.

Financial performance

• FY26 revenue INR 12,759 Mn; EBITDA INR 2,272 Mn; PAT INR 1,121 Mn.
• FY26 EBITDA margin 17.81%; PAT margin 8.79%.
• Q1 FY27 revenue INR 1,490 Mn; EBITDA INR -129 Mn; PAT INR -234 Mn.
• Q1 FY27 PBT INR -317 Mn; PAT margin -15.70%.

Capital structure & liquidity

• FY26 borrowings INR 3,291 Mn; lease liabilities INR 1,916 Mn; no long-term borrowings.
• Market data: CMP INR 554.50; market cap INR 11,496 Mn; outstanding 20.73 Mn.

Strategic priorities & outlook

• Diversify revenue mix; expand in cotton and premium segments.
• Penetrate new markets; expand EBO/MBO footprint; strengthen e-commerce.

Governance & leadership

• Chairman & MD: Jawahar Lal Oswal; Executive Directors: Sandeep Jain, Rishabh Oswal.
• Director: Dinesh Gogna; Company Secretary: Ankur Gauba.

Parties

• Lender: Monte Carlo Fashions Limited.
• Borrower: MCFL Energy Projects Private Limited, a wholly owned subsidiary.

Purpose

• Loans to fund energy project under KUSUM-C scheme.

Key terms

• Facility size up to Rs 19 crore.
• Tenor maximum five years from execution.
• Interest rate 9% per annum, compounded annually.
• Unsecured loan facility; no security provided.
• No rights to appoint directors or subscribe to shares.
• Related party: Borrower is a wholly owned subsidiary; arm's length.

Related party status

• Yes; transaction with wholly owned subsidiary.

Impact

• Intra-group funding; no ownership or control changes.
• Interest income: 9% per annum.
• Funds allocated to WOS for solar project implementation.

Other disclosures

• Regulatory: Compliance with SEBI Listing Regulations Regulation 30.
• Amendment/termination: Not applicable.

Financial Performance

• Revenue from operations was INR149 crores, up 8% YoY.
• EBITDA loss stood at INR 3 crores; net loss INR 23 crores.
• Higher product returns weighed on the quarter; offset in coming quarters.

Operational Trends

• Cotton volumes up 23% YoY; home textile up 42%; kids wear up 5%.
• Footwear sales up 38% YoY; Rock It brand growth continues; home textile momentum.
• Online sales grew 15% YoY; 30-minute deliveries via Blinkit, Swiggy, Zepto.
• Salesforce partnership aiding digital transformation and customer experience.

Store Expansion and Capex

• Plan to open 40–45 exclusive brand outlets this year; Western and Southern focus.
• Capex-light business; guided INR 30 crores capex for next financial year.
• Solar projects: ~INR 150 crores for ~50 MW DC; land leased; commissioning in 9–12 months; billing next financial year.
• Exit option after 1 year; SPV may transfer to a new investor; EPC contractor installed.

Returns and Margin Dynamics

• Returns target approx. 12%–13%; discounts and returns are key margin risks.
• Materials cost increases largely prebooked; limited impact from raw material hikes.
• Full-year margin may be ~100 basis points lower than last year.

Guidance and Outlook

• FY27 revenue growth expected to be low double-digit; exact figure not quantified.
• SSSG around 7%; export focus minimal; domestic market emphasis.
• Net overall margin pressures anticipated due to inflation and returns.

Q&A Highlights

• Refinishing capacity increased to about 10,000 pieces per day to speed returns.
• First-quarter returns ~1 lakh extra pieces; second quarter ~70,000 more vs last year.
• Franchise ROI 3–4 years; ~145 company-owned EBOs; online sales from own website ~20%.
• Exports not prioritized; focus remains on domestic growth and online channels.

Meeting Details

• Date: August 6, 2026
• Time: 11:00 a.m. IST
• Type/Mode: Virtual group conference call
• Event: Q1 FY27 results conference call
• Organizer: Monte Carlo Fashions Limited
• Key participants: Company Secretary & Compliance Officer (management role)
• Purpose: Discuss Q1 FY27 results
• Recording: Audio recording available

Meeting Details

• Date & time: Thursday, August 6, 2026, 11:00 AM IST.
• Type & mode: virtual group conference call.
• Organiser: EMKAY GLOBAL FINANCIAL SERVICES LTD.
• Event: Q1 FY27 Post-Results Conference Call for Monte Carlo Fashions Ltd.

Participants

• Key company participants: Executive Directors, Director, Chief Financial Officer, and Company Secretary.

Purpose

• Discuss Q1 FY27 results in a post-results conference call.

Additional Notes

• Dial-in details provided; pre-register and DiamondPass express join available.

Meeting Details

• Board meeting scheduled for August 5, 2026 at the Registered Office.

Key Agenda Items

• Consider and approve Standalone and Consolidated Un-Audited Financial Results for quarter ended June 30, 2026.

Other Notes

• Trading window closed from July 1, 2026 until 48 hours after results declaration.

Rating Action & Instruments

• Bank facilities rated AA-/Stable, reaffirmed by CRISIL.
• Total bank loan facilities: Rs 430 crore; AA-/Stable reaffirmed.
• Commercial Paper rating reaffirmed: A1+; CP size Rs 20 crore.

Rating Agency & Outlook

• Agency: CRISIL Ratings Limited.
• Outlook: Stable for bank facilities.
• CP rating: no formal outlook provided.

Material Changes / Rationale

• Rationale not disclosed in the excerpt.
• No material change; ratings reaffirmed.

Dematerialisation status

• No dematerialisation/rematerialisation requests were received from depository participants for quarter ended 30 June 2026.

Q4 FY26 results

• Revenue rose 36% year-on-year to about ₹280 crore.
• EBITDA jumped 353% year-on-year to ₹26 crore.
• EBITDA margin was 9.2% in Q4 FY26.
• PAT was ₹5 crore versus a ₹10 crore loss last year.
• Full-year FY26 revenue grew 16% to ₹1,276 crore.
• FY26 EBITDA increased 22% to about ₹227 crore.
• FY26 EBITDA margin was 17.81% excluding other income.
• FY26 PAT rose 38% to ₹112 crore, with 8.79% margin.

Operating drivers

• Annual volume growth was 12%; Q4 volume growth was estimated at 18%-20%.
• Summer categories drove growth; penetration increased across regions.
• Rock.it gross sales grew 86% during the year.
• Footwear gross sales surged 149% versus FY25.
• Online net sales grew 38% year-on-year through own website and portals.
• Home textile maintained growth; kids annual revenue run rate reached ₹110 crore.
• Returns were 17% for FY26, versus 15% last year.
• Discounts fell to 9.44% from 10.16% last year.

Expansion and new businesses

• Management plans 40-45 EBO openings in FY27, with possible increase to 50.
• Two Cloak & Decker EBOs were added, taking the total to 24 stores.
• Average store size is 1,000-1,500 square feet.
• Footwear is in about 50 larger stores above 2,000 square feet.
• Solar project has 40 MW PPA signed with Madhya Pradesh government.
• Solar capex is estimated at ₹130-140 crore, with 75% debt funding.
• Solar project revenue is expected at ₹15-16 crore annually.
• Management expects solar IRR above 15% over 25 years.

Q&A Highlights

• Analysts asked about quarterly volume growth; management said annual volume grew 12%, with Q4 around 18%-20%.
• Analysts asked about summer demand; management said penetration and loyal winter customers are driving summer sales.
• Analysts asked about inflation and spending; management said no major spending cut is visible yet.
• Analysts asked about FY27 guidance; management said detailed guidance will come in Q2, but double-digit growth is expected.
• Analysts asked about raw material inflation; management said price hikes of 6%-8% were taken immediately.
• Analysts asked about footwear growth; management said turnover could double, led by online channels and select offline trials.
• Analysts asked about inventory; management said inventory days fell to 144 from 169 last year.
• Analysts asked about quick commerce; management said Blinkit, Swiggy, Zepto are live, with BigBasket under discussion.
• Analysts asked about future IPP/BESS projects; management said new projects depend on achieving good IRR.
• Analysts asked about manufacturing capex; management said annual capex stays around ₹10-15 crore, with 85% production outsourced.