Monte Carlo Fashions Ltd (NSE:MONTECARLO)

Q1 2027 Monte Carlo Fashions Ltd Earnings Call Transcript

Aug 6, 2026 / 05:30 AM GMT

Release Date Price: ₹498.95 (-0.40%)

Transcript

Key Points

Positve

Monte Carlo Fashions Ltd (BOM:538836) reported broad-based volume growth across key categories, with cotton volumes up 23% YoY, home textiles up 42% YoY, and footwear sales up 38% YoY.
The company's digital channel is gaining traction, with online sales growing 15% YoY and new partnerships with quick commerce platforms like Blinkit, Swiggy, and Zepto enabling 30-minute deliveries.
Management is confident in achieving low double-digit revenue growth for FY27, supported by a strong order book and successful pre-winter and winter trade shows.
The company maintains a strong balance sheet with Rs 305 crore in cash and a very asset-light business model, with minimal CapEx requirements of only Rs 10-15 crore annually for modernization.
Monte Carlo Fashions Ltd (BOM:538836) has one of the lowest sales return rates in the industry at approximately 11-12%, compared to the industry average of 15-20%, and is implementing better stock planning and backend scrutiny to further minimize returns.

Negative

The company reported an EBITDA loss of Rs 13 crore and a net loss of Rs 23 crore in Q1 FY27, primarily due to a significant increase in product returns, with Rs 50 crore more in returns processed compared to the same quarter last year.
Management guided for a potential 100 basis point reduction in EBITDA margins for FY27 due to rising input costs, inflation, and freight expenses, despite taking price hikes of 6-10%.
The company has consciously curtailed its production and growth target from an initial plan of 15-20% to a more conservative low double-digit growth, citing geopolitical tensions, inflation, and monsoon deficit risks.
The stock has underperformed significantly, trading near book value after 11 years, which has led to repeated investor suggestions for a share buyback, though management has only noted the suggestion without committing to action.
The company's heavy reliance on B2B sales (over 90% of total sales) makes it vulnerable to institutional returns, which are a key factor distorting quarterly financials and impacting profitability.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

MOCF.NS - Monte Carlo Fashions Ltd
Q1 2027 Monte Carlo Fashions Ltd Earnings Call
Aug 06, 2026 / 05:30AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and Gentlemen, Good day and welcome to the Monte Carlo Fashions Limited Q1 FY27 Earnings Conference Call hosted by MK Global Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during the conference call, please signal an operator by pressing and 0 on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Sunny Bhadra from MK Global Financial Services Limited.

Thank you and over to you sir.

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