Back to Markets
Stocks● Neutral
Ethos Doubles Down on Luxury Watches as Smartwatch Fears Fade
Ethos crosses 100 stores as smartwatch threat fades. Revenue hits ₹1,612 crore in FY26, up 29%. Swiss watch imports cross ₹3,500 crore. New youth format 'Our Studio' tests scale vs curation.
Continue with
NEW DELHI – The threat from smartwatches to traditional analogue timepieces is receding, and Ethos Ltd is betting on that shift with an aggressive expansion plan. The BSE-listed luxury watch retailer has crossed the 100-store mark this week and plans to double its network over the next three to four years, according to managing director and chief executive Pranav Saboo.
“The threat from wearables (smartwatches) is going away. Analogue and mechanical watches continue to find relevance as style-led purchases,” Saboo said in an exclusive interview with Mint.
The company’s push comes as profitability remains under pressure. Ethos closed FY26 with revenue from operations crossing ₹1,612 crore, up from ₹1,251 crore in FY25. Profit largely stayed flat at ₹96 crore, weighed down by higher rentals, employee costs, marketing spends and forex volatility from the Swiss franc’s appreciation against the rupee.
The Smartwatch Threat That Never Materialised
The sub-₹1 lakh watch segment was once considered the most vulnerable to smartwatches. Ethos now reports renewed demand in that price bracket as consumers treat watches as fashion and status products rather than functional devices. Demand is broadening beyond a narrow luxury buyer base, with younger consumers entering the category even as family purchases linked to weddings and milestones continue to drive sales.
Ethos estimated its core customer base at 35-40 years old.
Why Analogue Watches Are Winning Again
Saboo attributed the recovery to changing consumer preferences. The company said the sub-₹1 lakh segment is witnessing renewed demand. “I haven’t seen any short-term impact on demand this year. There is still enough steam in the economy and consumers continue to spend on aspiration-led and long-term purchases such as luxury watches despite broader conversations around austerity,” he said.
Ethos added 25 boutique stores during the year, taking its network to 98 stores across 32 cities. Management said in its earnings commentary that the company remains in an investment phase, prioritizing long-term expansion, customer experience and brand building over near-term margin optimization.
Swiss Watch Imports Cross ₹3,500 Crore for the First Time
Ethos’ expansion comes amid growth in India’s broader luxury watch market. Swiss luxury watch imports crossed ₹3,500 crore for the first time in 2025. The first three months of 2026 showed no signs of slowing down. India imported Swiss watches worth roughly ₹1,035 crore (84.9 million Swiss franc) during the period, up from 62.3 million Swiss franc a year earlier, according to data from the Federation of the Swiss Watch Industry.
Saboo attributed the growth to changing consumer preferences, stronger consumption and the appreciation of the Swiss franc against the rupee.
| Metric | FY25 | FY26 | Change |
|---|---|---|---|
| Revenue (₹ cr) | 1,251 | 1,612 | +29% |
| Profit (₹ cr) | ~96 | 96 | Flat |
| Store count | 73 | 98 | +25 |
| Swiss watch imports (CHF mn, Q1) | 62.3 | 84.9 | +36% |
The Margin Trade-Off
Ethos closed FY26 with revenue up 29% year-on-year, while profit growth lagged at near-flat levels. The divergence reflects: