ETHOSLTD
Micro CapEthos Limited
Consumer
Ethos Limited is a luxury watch and lifestyle retailer in India, operating 98 boutiques across 32 cities. It offers over 80 global luxury brands, including 49 exclusive ones, and is expanding its network and product portfolio, including pre-owned watches and lifestyle products like Messika and Rimowa.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT 0% YoY · margin compression · Rev +33% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹414 Cr | +33.1% | -11.7% |
| EBITDA | ₹50 Cr | +8.7% | -18.0% |
| Operating margin | 12.0% | -300 bps | -100 bps |
| PAT | ₹23 Cr | +0.0% | -25.8% |
| PAT margin | 5.6% | -184 bps | -105 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
FY26 consolidated revenue grew 28.8% YoY to ₹1,612.2 crore, with Q4 FY26 revenue up 33.3% YoY. However, FY26 consolidated EBITDA grew 13.5% YoY to ₹182.7 crore, and PBT grew only 4.0% YoY to ₹146.5 crore, impacted by forex volatility and new store costs.
While revenue growth remains robust, profitability is under pressure. Significant forex headwinds and increased operating costs from aggressive store expansion and marketing spend have compressed EBITDA and PBT margins. The long-term growth strategy is intact, but short-term margin performance is a concern.
Network Growth
Expanded from 73 to 98 boutiques across 32 cities in FY26, entering six new markets.
Premiumisation Trend
Continued demand across portfolio and increasing premiumisation in luxury timepiece and lifestyle segments.
Lifestyle Vertical Expansion
Onboarding Messika and expanding Rimowa to two boutiques, witnessing strong customer traction.
Exclusive Brand Partnerships
Added 4 exclusive brands (3 watches, 1 luggage) in FY26.
Boutique Expansion FY26
Added 25 boutiques in FY26, reaching 98 boutiques across 32 cities by May 2026.
New Market Entry
Entered six new markets: Ranchi, Jodhpur, Srinagar, Kanpur, Agra, and Faridabad.
Q1FY27 Additions (April-Till Date)
4 Watch Boutiques added in Faridabad, Agra, Pune (4th), Jaipur (4th & biggest).
Rising HNI Population
Increase in wealth of people due to rise in HNIs in fast-growing economies like India.
Luxury Brand Awareness
Awareness and availability of luxury brands at Ethos with international retail standards.
Foreign Exchange Volatility
CHF/INR moved from ₹96.98 (Mar 2025) to ₹122.6 (May 2026), ~26% INR depreciation.
Gross Margin Impact from Forex
Estimated adverse forex-related gross margin impact of ~₹18.7 crore in FY26.
New Labour Code Charge
One-time charge of ~₹1.8 crore (consolidated) recognized in FY26 due to gratuity restatement.
New Store Costs
22 new boutiques opened in FY26 are in nascent stage of revenue, impacting margins.
Forex Rate Fluctuations
INR depreciation against CHF impacts cost of goods sold and creditor restatement, affecting margins.
New Store Profitability Ramp-up
New boutiques are in nascent stages of revenue, requiring time to achieve profitability and scale.
Talent Investment & Marketing Spend
Commitment to investing in high-quality talent and increased marketing expenses (₹24 Cr to ₹40 Cr) could pressure short-term margins.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Annual (FY26 vs FY25) comparison provides a full-year view of growth and profitability trends. Quarterly (Q4 FY26 vs Q4 FY25) comparison is useful for assessing recent momentum and the impact of seasonal factors in the consumer luxury segment.
Revenue from Operations (Consolidated)
FY26: ₹1,612.2 Cr, +28.8% YoY; Q4 FY26: ₹414.0 Cr, +33.3% YoY
Gross Profit Margin (Consolidated)
FY26: 29.0% (FY25: 30.0%); Q4 FY26: 29.3% (Q4 FY25: 31.0%)
EBITDA Margin (Consolidated, without IND AS 116)
FY26: 11.0% (FY25: 12.6%); Q4 FY26: 10.6% (Q4 FY25: 12.3%)
Average Selling Price (ASP)
FY26: ₹2.07 Lacs, +22.9% YoY
Long-term Revenue Ambition
Progressing towards a long-term ambition to achieve a tenfold increase in revenue over the next decade.
Expansion Strategy
Expansion strategy anchored in network growth, productivity enhancement, and deeper brand partnerships.
Calibrated Pricing Approach
Higher costs from forex only partially passed through in pricing to protect long-term brand equity and customer relationships.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Gross Profit Margin | 29.0% (FY26) | Stabilization or improvement as new stores mature and forex impact normalizes. |
| EBITDA Margin (without IND AS 116) | 11.0% (FY26) | Recovery from current pressures due to forex and new store operating costs. |
| Boutique Productivity | 98 boutiques (May 2026) | Revenue per store and SSSG to assess efficiency of new store additions. |
| Forex Impact | CHF/INR at ₹122.6 (May 2026) | CHF/INR movement and management's ability to mitigate its impact on costs and pricing. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
43NeutralSMA20 -8.7% / mo
Technical chart
ETHOSLTDdaily · 6M-21.5%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 55. Wait for confirmation.
- SMA20 falling (~4.3% over last month) — short-term momentum negative.
- RSI(14) at 55 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 23% off 52W high · 26% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 12.5%.
- Growth contributes 18/25 to the score.
Main drags
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 8/30; verify the latest quarterly trend.
- Cash flow is weaker at 3/10; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 64th percentile of the scored universe and 63rd percentile within Consumer. Main check: financial discipline is weak at 50/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: ROE is low at 7.8%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Consumer: 63rd pctile, median 67 · Micro: 46th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸8/8 recent quarters had positive YoY revenue growth.
- ▸6/8 recent quarters had positive YoY PAT growth.
- ▸OPM spread across recent quarters is 4%.
Trust risks
- ▸ROE is low at 7.8%.
- ▸ROCE trend is -3.2%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 65.50
- P/B
- 4.23
- EV/EBITDA
- 22.65
- Market Cap
- 6291.00Cr
Profitability
- ROE
- 7.77%
- ROCE
- 9.82%
- ROA
- 4.37%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 33.00%
- EPS 5Y
- 83.00%
- Revenue 3Y
- 27.00%
- EPS 3Y
- 17.00%
Balance Sheet
- Debt/Equity
- 0.22
- Interest Coverage
- 7.52×
- Altman Z
- 7.54
- Book Value
- 556.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 3/5
- OCF
- 90.00 Cr
- EPS TTM
- 35.42
Shareholding
- Promoter Hold
- 50.58%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 33%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.