MONTECARLO - Monte Carlo Fashions Limited Share Price

In the earnings call held on May 19, 2026, management of Monte Carlo Fashions Limited provided an optimistic outlook for FY27. The company reported Q4 revenue of approximately INR 280 crores, a year-on-year increase of 36%, with an EBITDA of INR 26 crores, reflecting a remarkable growth of 353%. The full-year revenue reached INR 1,276 crores, registering a 16% growth, and the company reported a profit after tax of INR 112 crores, which represents a 38% increase from the previous year.

Key forward-looking points mentioned include:

1. Revenue Guidance: The management stated their commitment to sustaining growth momentum with double-digit growth expected in FY27, supported by the successful execution of strategic initiatives in both existing and new product categories.

2. Store Expansion: The company plans to open 40 to 45 exclusive brand outlets (EBOs) across India in FY27, maintaining a strategic focus on the Western and Southern regions.

3. Product Performance: The management highlighted an impressive performance from the Rock.it brand, which experienced an 86% growth in gross sales over the year. Footwear gross sales surged by 149% compared to the previous fiscal year.

4. Digital Expansion: Online net sales grew by 38% compared to FY25, reflecting the company's emphasis on enhancing its digital presence through partnerships with quick commerce platforms.

5. Renewable Energy Project: The company is in the final stages of commissioning a 40-megawatt project in Madhya Pradesh, expecting annual revenues from this initiative to range between INR 15 crores to INR 16 crores, with an anticipated EBITDA margin of around 90%.

6. Operational Stability: Management indicated that they do not foresee significant consumer spending cuts despite inflationary pressures, maintaining confidence in their brand's performance.

They emphasized delivering on the guidance provided in the prior periods while navigating geopolitical challenges that may impact the broader market.

Question: In the current quarter, the revenues grew by about 20%. How much was volume growth out of this?
Answer: The revenue growth for this quarter was approximately 36%. On an annual basis, we achieved a 12% increase in volume. I need to check the exact volume growth for this quarter, but I estimate it to be around 18% to 20%.

Question: What were the main drivers of this revenue growth? Should we expect similar growth trends in the coming quarters?
Answer: The driver of our growth is attributed to the increased sales in summer categories, which has been growing faster than winter wear. We achieved a revenue growth of 16% for the year, in line with our guidance of 15%, and we anticipate this growth trend to continue.

Question: Have we seen any impact of lower spending or higher inflation recently?
Answer: We haven't noticed significant cutbacks in consumer spending. However, government hikes in petroleum prices could impact spending due to inflation. It's too early to determine the exact effect in the coming quarters, but inflation may lead to reduced consumer spending if it persists.

Question: Can you provide guidance for FY27 in terms of store expansion and top-line targets?
Answer: We aim to open approximately 40 to 45 stores this financial year. For precise guidance, we will provide updated information during our Q2 call, as geopolitical issues may influence future projections.

Question: What is the status of our renewable energy projects?
Answer: We have signed a Power Purchase Agreement (PPA) for about 40 megawatts with the Madhya Pradesh government. We expect this to become operational within 12 months, generating annual revenue between INR 15 to 16 crores with a capex of INR 130 to 140 crores.

Question: What are the expected revenue and EBITDA margins from the solar project?
Answer: The project will operate at full capacity from day one, generating approx. INR 15 to 16 crores in revenue, with EBITDA margins around 90% of the top line after accounting for operational costs.

Question: What about raw material hikes affecting our margins?
Answer: We have managed to cover anticipated raw material price hikes by increasing our prices by about 7% to 8% before our trade shows. Therefore, we expect no significant negative impacts on our margins due to these costs.

Question: Are we expected to be profitable in Q1 of FY27?
Answer: I can't provide quarter-by-quarter guidance, but I will say we expect to be better than the previous year, with double-digit growth likely on the cards.

Question: What sort of growth in the EBOs network do you expect this year?
Answer: We plan to add around 40 to 45 EBOs in FY27, which complements our overall growth strategy.

Question: What steps are you taking regarding e-commerce platforms?
Answer: We're currently exploring various e-commerce partnerships and have tied up with Blinkit, Swiggy, and Zepto. We're aiming for a robust online presence while ensuring that profitability remains in line with our other sales channels.

Question: What is the expected contribution from the home textiles segment in FY27?
Answer: We expect the home textiles segment to contribute around 13% to 14% to our overall revenue, up from the previous year's 12%.