Monte Carlo swings to Q1 loss despite revenue growth, backs solar push

MUMBAI: Not every fashion season is stitched with profits. Monte Carlo Fashions found itself wearing a different trend this quarter, with higher revenue unable to prevent a slide into the red as seasonal pressures and rising costs weighed on earnings.

Monte Carlo Fashions reported a standalone net loss of Rs 23.48 crore for the quarter ended 30 June 2026, compared with a profit of Rs 5.04 crore in the previous quarter and a loss of Rs 16.32 crore in the corresponding quarter last year, even as revenue from operations grew 8 per cent year-on-year to Rs 149.04 crore from **Rs 138.53 crore.

Total income increased to Rs 159.49 crore, up from Rs 148.96 crore a year earlier, while total expenses climbed to Rs 191.28 crore, resulting in a pre-tax loss of Rs 31.79 crore. The company reported a tax credit of Rs 8.31 crore, narrowing the net loss for the quarter.

The retailer’s cost of materials consumed rose to Rs 32.32 crore, while purchases of stock-in-trade increased to Rs 73.76 crore. Employee benefit expenses stood at Rs 37.03 crore, finance costs at Rs 12.42 crore, depreciation at Rs 16.94 crore, advertisement and business promotion expenses at Rs 6.77 crore, and other expenses at Rs 42.46 crore.

Despite the weak quarterly earnings, Monte Carlo’s board approved an investment of up to Rs 30 crore in its wholly owned subsidiary, MCFL Energy Projects Private Limited, through equity, preference shares, debentures or unsecured loans in one or more tranches. The capital will fund the subsidiary’s solar power projects under the PM KUSUM-C Scheme, marking the apparel company’s deeper push into renewable energy.

The subsidiary, incorporated in January 2026, focuses on the generation and supply of solar power. Following the proposed investment, Monte Carlo will continue to hold 100 per cent ownership in the business.

The board also approved the reappointment of Jawahar Lal Oswal as Chairman and Managing Director for another five-year term from 10 August 2026 to 9 August 2031. Executive Directors Ruchika Oswal and Monica Oswal were similarly reappointed for five years, subject to shareholders’ approval.

In addition, independent directors Manikant Prasad Singh and Parvinder Singh Pruthi were reappointed for second consecutive five-year terms beginning 1 February 2027, pending shareholder approval. The company will hold its 18th Annual General Meeting on 28 September 2026 through video conferencing.

Monte Carlo noted that its apparel business remains seasonal, meaning quarterly performance may not necessarily reflect the full year’s financial trajectory.