Business Expansion Update

Lalithaa Jewellery Mart Limited has inaugurated its 66th showroom located at No. 154, Pattamangala Street, Kamarajar Salai, Mayiladuthurai, Tamil Nadu. The new showroom spans 6,770 square feet.

To celebrate the opening, the company is offering introductory discounts valid until September 30, 2026, including:

  • 2% discount on gold Value Addition (VA)
  • Zero VA on gold coins
  • ₹150 extra per gram on old gold exchange
  • ₹12,000 off per carat on diamonds

Retail Footprint Expansion

Since April 2026, the company has expanded its retail footprint from 61 to 66 stores, adding 5 new stores. The expansion is supported by integrated manufacturing capabilities, extensive karigar network, and disciplined operating model.

Q1 FY2027 Financial Performance

This quarter represents the company's first quarterly results since becoming a public company. Key financial highlights:

  • Revenue growth of 26% year-on-year
  • Gold prices remained stable during Q1 FY2027, significantly reducing contribution of gold price movements (inventory gains) to reported profitability
  • Contribution of inventory gains to gross margin declined by over 90% year-on-year
  • Core Gross Margin (representing margin generated from making charges) improved by 20 bps year-on-year

Operational Commentary

The resilience and improvement in Core Gross Margin reflects the strength of underlying jewellery operations and benefits from continued focus on making charges, product mix, and pricing. The margin performance is increasingly driven by core economics of the jewellery business rather than gains from gold price movements.

Making charge revisions implemented in Q4 FY2026 and towards the end of Q1 FY2027 are expected to progressively contribute to underlying gross margins as the revised pricing structure gains greater representation across sales.

Market Environment

The demand environment remains encouraging, supported by weddings and festive consumption, with continued consumer preference for trusted, organised jewellery retailers. While volatility in gold prices may continue to influence purchase volumes and product mix, the company remains positive about long-term growth opportunity for organised jewellery retail.

Forward Outlook

The company remains committed to disciplined growth and operational execution while continuing to deliver strong value to customers. The expansion strategy focuses on deepening presence across existing markets while selectively entering attractive new catchments.