Ethos Limited has filed its quarterly statement confirming the complete utilization of proceeds from its Qualified Institutional Placement (QIP) as of December 31, 2025. The company reported no deviations or variations in the use of funds for the quarter ended December 31, 2025, maintaining compliance with regulatory requirements under SEBI regulations.

QIP Details and Fund Utilization

The luxury watch retailer had raised funds through a QIP conducted on November 3, 2023, issuing 11,31,210 equity shares. The placement generated gross proceeds of Rs 17,499.82 lakhs, with net proceeds amounting to Rs 16,959.64 lakhs after deducting issue expenses.

Fund Allocation and Usage

The QIP proceeds were allocated for two primary objectives, both of which have been fully utilized according to the company's regulatory filing. The funds were deployed as originally planned without any deviations from the stated objects.

Regulatory Compliance and Monitoring

Ethos Limited's QIP utilization is being monitored by CRISIL Ratings Limited as the designated monitoring agency. The company has maintained transparency in its fund utilization process, with both the Audit Committee and auditors providing no adverse comments on the deployment of proceeds.

The company filed this statement in compliance with Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the relevant SEBI circular dated December 24, 2019. The statement has been made available on the company's website for stakeholder reference.

Corporate Governance Aspects

The filing was signed by Shubham Kandhway, Company Secretary and Compliance Officer, confirming that there were no deviations in objects, purposes, or amounts of fund utilization as against the original disclosure. The complete utilization of QIP proceeds demonstrates the company's adherence to its stated business plans and regulatory commitments.

The working capital funding component, representing the larger portion at Rs 13,125.00 lakhs, was fully utilized by the quarter ended June 30, 2025. The general corporate purposes allocation of Rs 3,834.64 lakhs was deployed for expenses incurred in the ordinary course of business operations.

Ethos Limited has delivered a mixed third quarter performance, showcasing robust revenue growth and improved EBITDA alongside steady profitability, though facing some margin compression challenges. The luxury watch and jewelry retailer demonstrated strong business momentum with significant top-line expansion while navigating operational efficiency dynamics.

Strong Revenue and EBITDA Performance

The company achieved remarkable financial growth during the quarter, with total revenue reaching ₹4.7 billion compared to ₹3.7 billion in the corresponding quarter of the previous year, representing a substantial year-on-year increase of 27.03%. EBITDA performance showed solid improvement, rising to ₹606 million from ₹551 million in the same quarter last year, marking a 10.00% year-on-year growth.

Profitability and Margin Analysis

While maintaining steady profit growth, Ethos reported net profit of ₹306 million for Q3, representing a 3.03% increase from ₹297 million in the same quarter last year. However, the company experienced margin compression with EBITDA margin declining to 12.86% from 14.89% in the previous year, indicating some pressure on operational efficiency despite absolute growth in earnings.

Business Performance Assessment

The significant revenue growth of 27% indicates strong market demand for Ethos's luxury watch and jewelry offerings, while the 10% EBITDA growth demonstrates the company's ability to generate improved absolute earnings. However, the margin compression from 14.89% to 12.86% suggests increased operational costs or competitive pricing pressures that warrant attention.

Market Position and Operational Dynamics

The robust financial performance reflects Ethos's strengthening position in the luxury retail segment, with substantial revenue expansion indicating successful market penetration. The combination of strong top-line growth with moderate bottom-line improvement suggests the company is investing in expansion while managing operational challenges. This performance indicates strong consumer demand and effective business execution, though margin management remains a key focus area for sustainable profitability.