Monte Carlo Fashions Limited , a prominent player in the Indian textile and apparel industry, has announced its financial results for the second quarter of fiscal year 2026, ending September 30, 2025. The company has shown a significant turnaround in its performance compared to the previous quarter.

Key Financial Highlights

Improved Performance

Monte Carlo Fashions has reported a standalone net profit of ₹16.17 crore for Q2 FY2026, marking a substantial improvement from the loss of ₹16.32 crore in the previous quarter. This turnaround also represents a year-on-year growth of 102% from the ₹8.01 crore profit reported in Q2 FY2025.

Revenue Growth

The company's revenue from operations stood at ₹248.70 crore for the quarter, showing a quarter-on-quarter growth of 79.5% from ₹138.53 crore in Q1 FY2026. On a year-on-year basis, the revenue grew by 15.3% from ₹215.70 crore in Q2 FY2025.

Operational Efficiency

The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 FY2026 was ₹50.77 crore, significantly higher than the ₹4.56 crore reported in Q1 FY2026. This indicates an improvement in operational efficiency and profitability.

Balance Sheet Position

As of September 30, 2025, Monte Carlo Fashions reported:

• Total assets of ₹1,960.23 crore, up from ₹1,722.44 crore at the end of March 2025
• Inventories increased to ₹646.92 crore from ₹503.18 crore
• Short-term borrowings rose to ₹513.14 crore from ₹293.73 crore

Management Commentary

The Board of Directors approved these unaudited financial results in their meeting held on November 12, 2025. The results were reviewed by statutory auditors Deloitte Haskins & Sells.

Market Outlook

While the company has shown a recovery in Q2, it's important to note that Monte Carlo Fashions' business is seasonal in nature. The company states that performance in any single quarter may not be representative of its annual performance.

Conclusion

Monte Carlo Fashions' Q2 FY2026 results demonstrate an improvement in both top-line and bottom-line performance. The company has reversed its loss from the previous quarter and shown year-on-year growth. However, investors should consider the seasonal nature of the business when evaluating these results in the context of long-term performance.

Monte Carlo Fashions Limited, a prominent Indian apparel company, has reported a mixed financial performance for the first quarter. The company saw a 10% year-over-year increase in revenue, reaching INR 139.00 crores, but faced challenges with profitability.

Financial Performance

Despite the revenue growth, Monte Carlo Fashions posted an EBITDA loss of INR 6.00 crores and a net loss of INR 16.00 crores for the quarter. The company's Executive Director, Sandeep Jain, attributed these results partly to the seasonal nature of the business, with returns from previous seasons typically impacting Q1 results.

Segment Performance

The online segment emerged as a strong growth driver, with significant sales increases, particularly through the company's own website. The Rock It brand maintained its growth momentum, while the home textile segment also performed well. Notably, footwear sales doubled compared to the same quarter last year, with 90% of these sales occurring online.

Retail Expansion

Monte Carlo Fashions continues to focus on expanding its retail presence:

• Opened 3 new Cloak & Decker stores, bringing the total to 15
• On track to reach 35 Cloak & Decker stores by year-end
• Plans to open 40-45 Monte Carlo stores across India, with emphasis on Western and Southern regions

Strategic Initiatives

The company has undertaken several strategic initiatives to enhance its market position and operational efficiency:

1. Partnered with quick delivery platforms Blinkit, Swiggy, and Zepto for 30-minute deliveries
2. Initiated a digital transformation collaboration with Salesforce to improve operations and customer experience
3. Focusing on expanding in Western and Southern regions of India

Future Outlook

Management maintains its current guidance of 10-11% revenue growth and 19% margins but expressed confidence in potentially revising these figures upwards after Q2. The company anticipates strong performance in upcoming quarters, driven by several positive factors:

• Good monsoon season
• Early Diwali festivities
• Strong wedding season
• Reduced interest rates

Management Commentary

Sandeep Jain, Executive Director of Monte Carlo Fashions, stated, "We are very optimistic and confident in achieving our guidance as well as potentially revising it upwards at the end of this quarter. The growth has been above our expectations, and we see only tailwinds going forward into the next two quarters."

Mr. Jain also highlighted the company's strong financial position, noting, "We are a debt-free company with even INR 300.00 crore cash on books as of 31st March."

As Monte Carlo Fashions navigates through the challenges of Q1, the company remains optimistic about its growth trajectory and strategic initiatives for the remainder of the year.