Ethos revenue grows 8.05% QoQ, but faster costs cut margin
Net profit rose 2.44% as lower interest and tax offset weaker operating profit; other income contributed 32.73% of pre-tax profit.
Filed 12 Nov 2026, 19:05 IST · after market close · Ethos Ltd (ETHOSLTD)
Key takeaways
- Consolidated revenue grew +8.05% QoQ to Rs 498.9 cr, but expenses grew faster at +9.55%, narrowing operating margin by 1.20 percentage points to 12.13%.
- Net profit rose +2.44% QoQ to Rs 29.36 cr as interest expense fell -7.36% and the tax rate declined by 1.25 percentage points.
- Other income accounted for 32.73% of pre-tax profit, making reported earnings less dependent on operating profit alone.
Price around the results
Revenue grew, but operating profit slipped
Ethos reported consolidated revenue growth of +8.05% QoQ in Q2FY27, while operating profit declined -1.64%. Expenses rose +9.55%, outpacing revenue and reducing operating margin by 1.20 percentage points. The company also incurred a one-time Rs 4.5 cr expense for the GPHG exhibition during the quarter, according to management.
Lower interest and tax supported net profit
Net profit increased +2.44% QoQ even as operating profit fell, helped by a -7.36% decline in interest expense and a 1.25-percentage-point reduction in the tax rate to 25.50%. Other income was 32.73% of pre-tax profit, so reported profit included a meaningful non-operating contribution. Operating margin nevertheless moved down from 13.33% in Q1FY27 to 12.13% in Q2FY27.
Ethos remained above the peer-sector margin
Ethos's 12.13% operating margin was 0.90 percentage points above the 11.23% median for the 327 Consumer Discretionary peers that had reported the same quarter. The available trend shows a sequential margin decline from Q1FY27, but does not establish a longer run of declines.
Boutique expansion remains central to the company’s plan
Management said the retail network expanded from 94 boutiques in 30 cities at the end of FY26 to 106 boutiques in 35 cities, with 12 boutiques opened during the financial year to date across five new markets. It also said Ethos plans to open its first Hour Studio boutique this year; the format currently targets watches priced from Rs 10,000 to Rs 2 lakh. Management said its focus remains on brand partnerships, customer experience, operating capabilities and disciplined expansion.
Results were filed after market close
Ethos filed the consolidated Q2FY27 results after market close, so the stock's immediate response is not covered here. The next market assessment will need to weigh the 8.05% sequential revenue growth against the 1.20-percentage-point margin contraction.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹499 cr | ₹462 cr | +8.05% |
| Other income | ₹13 cr | ₹12 cr | +10.16% |
| Expenses | ₹438 cr | ₹400 cr | +9.55% |
| Operating profit | ₹61 cr | ₹62 cr | -1.64% |
| Operating margin (%) | 12.13% | 13.33% | — |
| Interest | ₹7 cr | ₹8 cr | -7.36% |
| Depreciation | ₹27 cr | ₹26 cr | +1.84% |
| Profit before tax | ₹39 cr | ₹39 cr | +0.72% |
| Tax | ₹10 cr | ₹10 cr | -4.01% |
| Net profit | ₹29 cr | ₹29 cr | +2.44% |
| EPS (₹) | ₹10.77 | ₹10.51 | +2.47% |
Operating margin of 12.13% compares with a Consumer Discretionary sector median of 11.23% across 327 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Ethos entered five new markets during the financial year to date: Agra, Faridabad, Amritsar, Visakhapatnam and Calicut.
- Ethos opened its third exclusive Rimowa boutique in Bengaluru during the period.
Guidance & outlook
- India’s luxury watch market continues to offer significant growth opportunities, and Ethos says it is well positioned to capture them.
- Ethos plans to open its first Hour Studio boutique this year to expand the format and reach a wider customer base.
- Ethos says its focus is on strengthening partnerships, enhancing customer experience, improving operations and pursuing disciplined expansion.
Expansion
- Ethos expanded its retail network from 94 boutiques in 30 cities to 106 boutiques in 35 cities.
- Ethos opened 12 boutiques during the financial year to date and entered Agra, Faridabad, Amritsar, Visakhapatnam and Calicut.
- Ethos opened its third exclusive Rimowa boutique in Bengaluru, taking Rimowa’s India presence to three boutiques.
New initiatives
- Ethos introduced Hour Studio as an online retail format for watches priced from ₹10,000 to ₹2 lakh.
- Ethos hosted the GPHG Exhibition 2026 in Mumbai, showcasing 78 of 84 nominated timepieces across 14 categories.
Problems & risks
- Ethos incurred a one-time expenditure of INR 4.5 crore on the GPHG exhibition in Q2 FY27.
What to watch
- The next operating margin against the 12.13% reported in Q2FY27.
- Whether expense growth stays below or above the +8.05% QoQ revenue growth rate.
- Whether the Rs 4.5 cr GPHG expenditure is repeated in the following quarter.