1. At a Glance
India’s biggest luxury watch retailer,Ethos Ltd, just dropped itsQ2 FY26 results, and the numbers are ticking like a Swiss chronometer on steroids. Revenue came in at ₹383 crore, up a classy29% YoY, and profit after tax at ₹23.8 crore, up12% YoY. The stock trades at ₹2,851 — expensive, yes, but then again, so are the watches it sells.
With amarket cap of ₹7,629 croreand aP/E of 80.3x, the market is clearly treating Ethos like theTitan of Tier-1 luxury. It’s got aROE of 10.4%,ROCE of 13.8%, andzero dividend yield— because the company clearly believes the only thing it should distribute is wealth vibes, not cash.
From retailingOmega and IWC Schaffhausentocertified pre-owned Rolexes, Ethos has built a monopoly on wrists that scream, “My time is literally money.” But with the stock now more expensive than some of its own Tissots, is this luxury watch giant still in style, or just fashionably overvalued?
Let’s check the dial.
2. Introduction
Once upon a time, watches were about telling time. Now, they tellnet worth. Ethos Ltd has built an empire on this simple insight — that the more complicated a Swiss mechanism is, the more Indians want it on their wrists.
Founded in 2007 and promoted byKDDL Ltd, Ethos has grown into India’slargest luxury and premium watch retailer, commanding a13% share of the overall premium segmentand a whopping35–40% of the exclusive luxury segment.
If you thought Indians only splurged on gold and SUVs, Ethos has a counterargument — they’re splurging onRolex, IWC, Omega, and Jaeger-LeCoultretoo. The company has73 boutiques across 26 cities, including something called the“City of Time”in Gurugram — 22,000 sq. ft. of horological indulgence that makes your mall look like a kirana store.
Ethos isn’t just about selling new watches anymore. It’s also cornered thepre-owned certified luxury watchmarket — a first in India. It’s basically India’s CarTrade for rich wrists.
But as every collector knows, the question isn’t whether a Rolex holds time — it’s whether theEthos valuationcan hold sanity.
3. Business Model – WTF Do They Even Do?
Ethos’s business is pretty straightforward — it’s India’sauthorized retailer for 65+ luxury watch brands, including the who’s who of Swiss precision.
Their segments are divided by how much you’re willing to financially self-harm for a timepiece:
- Premium Segment:₹25,000–₹1 lakh (the “I got my bonus” range).
- Bridge to Luxury:₹1–2.5 lakh (the “mid-life crisis starter pack”).
- Luxury Segment:₹2.5–10 lakh (the “don’t tell my spouse” range).
- High Luxury:₹10 lakh and above (the “family trust fund” tier).
In FY25,Luxury and High Luxury watches made up 70% of sales, with anaverage selling price of ₹2.04 lakh per piece.The shift is clear — Indians are moving from Titan Raga toPatek levels of aspiration.
The company operates through:
- Mono-brand boutiques(exclusive stores for brands like Hublot, Breitling, IWC),
- Multi-brand outlets(Ethos Summit and Watch Boutiques),
- Second Movement Loungesfor certified pre-owned watches,
- And even luxury luggage/jewelry throughRimowa and Messika.
Theircustomer base of 3.28 lakh HNIsis basically the kind of people who check stock prices on a Piaget instead of a phone.
4. Financials Overview
| Metric (₹ Cr) | Q2 FY26 (Sep 2025) | Q2 FY25 (Sep 2024) | Q1 FY26 (Jun 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 383 | 297 | 346 | +29.0% | +10.7% |
| EBITDA | 48 | 42 | 45 | +14.3% | +6.7% |
| PAT | 23.8 | 21 | 19 | +12.0% | +25.3% |
| EPS (₹) | 8.89 | 7.93 | 7.11 | +12.1% | +25.1% |
Annualized EPS = 8.89 × 4 = ₹35.56 → P/E ≈ 2,851 / 35.56 =80.2x.
Commentary:Ethos’s quarterly performance is still ticking like a Swiss lever escapement — precise, steady, and a bit overpriced. Revenue growth is healthy, margins are stable around 13–15%, and PAT is up 12%. But at80x earnings
, even a Rolex Submariner would look cheap in comparison.
5. Valuation Discussion – Fair Value Range
Let’s do some basic math, not haute finance.
(a) P/E Method:EPS (TTM): ₹35.5Industry P/E: 29.8
- Lower range: ₹35.5 × 30 = ₹1,065
- Upper range (premium luxury status, 50x): ₹35.5 × 50 = ₹1,775→Fair Value Range: ₹1,065–₹1,775 per share
(b) EV/EBITDA Method:EV = ₹7,148 CrEBITDA (TTM) = ₹225 Cr (approx)→ EV/EBITDA = 31.8x
Industry average ~18x.Revalued range = (18–24x × ₹225 Cr = ₹4,050–₹5,400 Cr)→ Fair equity value = ₹4,050–₹5,400 CrPer share (2.68 Cr shares): ₹1,510–₹2,015
(c) DCF (Simplified):Assume 20% growth for 3 years, 12% discount rate.→ Implied fair range = ₹1,800–₹2,100
Final Educational Fair Value Range: ₹1,500–₹2,100 per share
Disclaimer:This fair value range is foreducational purposes onlyandnot investment advice.
6. What’s Cooking – News, Triggers, Drama
The quarter wasn’t just about results — it was full ofboardroom action and brand drama.
- Rights Issue:Ethos raised₹410 crore at ₹1,800/sharevia rights issue (June 2025). Clearly, the market is buying time — literally.
- Dubai Expansion:A newwholly-owned subsidiary in Dubaiwill expand the international luxury trade network. Because if you’re selling Swiss watches, why not do it closer to Switzerland’s second home — the UAE?
- ‘City of Time’ Launch:The company launched a 22,000 sq ftluxury watch township in Gurugram, hosting brands like Omega and Breitling. One mall to rule them all.
- New Brands Added:Christian van der Klaauw, HAUTLENCE, Singer Reimagined — names so fancy they sound like Elon Musk’s baby’s name.
- No Deviation in Fund Usage:Ethos confirmed proper utilization of IPO, QIP, and rights issue proceeds. Unlike some Indian companies, at least they know where their money is ticking.
So yes, Ethos isn’t just selling watches — it’s selling aspiration, exclusivity, and a dash of Swiss air.
7.
