Ethos Limited , a prominent player in the Indian luxury watch retail sector, has reported no deviations in the utilization of its Initial Public Offering (IPO) proceeds for the quarter ended September 30, 2025. The company has successfully allocated and utilized the majority of the Rs. 40,226.00 lakh raised through its IPO, demonstrating efficient capital deployment across various strategic objectives.

IPO Fund Allocation and Utilization

The company's IPO comprised a fresh issuance of Rs. 37,500.00 lakh and an offer for sale of Rs. 2,726.00 lakh. The funds were strategically allocated across five key objectives:

Extended Timeline for Store Establishment

While most fund categories have been fully utilized, Ethos Limited faced challenges in the complete deployment of funds allocated for new store establishment and renovation. The company encountered delays due to:

1. Mall operations not commencing as scheduled
2. Graded Response Action Plan (GRAP) restrictions in Delhi NCR
3. Delays in obtaining design approvals from global brands

In response to these challenges, Ethos Limited has taken proactive steps:

• The Board of Directors, in a meeting held on August 14, 2025, recommended an extension for the utilization of remaining funds under the store establishment category.
• Shareholders approved this extension in the Annual General Meeting.
• The new timeline for utilizing the remaining funds for store establishment has been set to June 30, 2026.

Financial Prudence and Transparency

Ethos Limited's adherence to its stated objectives and prompt disclosure of fund utilization reflects its commitment to financial prudence and transparency. The company's decision to extend the timeline for store establishment demonstrates adaptability in the face of external challenges, ensuring that shareholder funds are utilized effectively and efficiently.

The company's proactive approach in seeking shareholder approval for the extended timeline aligns with good corporate governance practices, maintaining investor confidence in its expansion plans and capital allocation strategies.

As Ethos Limited continues to navigate the luxury retail landscape, investors and market watchers will likely keep a close eye on the company's progress in establishing new stores and its overall performance in the coming quarters.

Ethos Limited , a prominent player in the Indian luxury watch retail sector, has announced its financial results for the first half of FY26, showcasing robust growth and strategic expansions.

Strong Financial Performance

Ethos Limited reported impressive financial results for H1 FY26, with significant growth in revenue:

The company's EBITDA also saw an increase:

EBITDA margins stood at 10.4% for the period.

Retail Expansion and Performance

Ethos Limited has made significant strides in expanding its retail presence:

1. Opened 16 new boutiques during April-September 2025
2. Expanded from 73 to 86 boutiques across 26 cities
3. Achieved same-store sales growth (SSSG) of 16.5% compared to 15.5% in H1 FY25
4. Increased average selling price per watch to Rs 2.18 lakh

Brand Expansion and Diversification

The company has continued to diversify its brand portfolio:

1. Added 4 new exclusive brands
2. Opened its first Messika boutique
3. Launched the second Rimowa boutique
4. Experienced 25% year-on-year growth in billing from second movement watches

Challenges and Financial Impact

Despite overall growth, Ethos Limited faced some challenges:

1. Margin pressure due to INR depreciation against CHF
2. Exchange rate moved from 96.98 to 111.25
3. Estimated forex loss of Rs 10.70 crore

Ethos Limited's strong revenue growth, retail expansion, and brand diversification demonstrate the company's robust growth trajectory in the luxury watch retail sector. However, the company will need to navigate currency fluctuations carefully to maintain profitability.