25/05/2026
π’ Re-Initiating Coverage β Ethos Ltd.
Ethos crossed the 100-boutique milestone post-year-end, with the 100th boutique opening in Indore on May 15,
2026, against 73 at end-FY2025.
We expect Ethos Limited to deliver revenue growth of approximately 138% by FY2029E over FY2025, driven by robust domestic luxury demand, aggressive store network expansion, and margin improvement supported by the India-Switzerland EFTA agreement now in force since October 2025. We estimate EBITDA and PAT margins to improve to approximately 14.2% and 7.4%, respectively, by FY2028E, reflecting operating leverage from store maturation and a favourable revenue mix shift toward exclusive brand partnerships. Our EPS estimates stand at Rs.53.5, Rs.67.8, and Rs.81.9 for FY2027E, FY2028E, and FY2029E, respectively.
Assigning a P/E multiple of 40x on FY2029E EPS, we arrive at a target price of Rs.3,274, implying an upside of ~35% from the current market price of Rs.2,459. We re-instate coverage on Ethos Limited with a BUY rating, with an investment horizon of 24β 30 months.
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