Financial and Operational Performance

Revenue: The company reported a 49% year-on-year (YoY) growth in revenue for Q1 FY27, reaching ₹733 crores.

Profitability: Pre-Ind AS EBITDA surged by 135% YoY to ₹55 crores. This resulted in an operating margin of 7.5%, representing an expansion of 273 basis points, which management attributed to operating leverage.

Same-Store Sales Growth (SSSG): The company achieved a robust SSSG of 39% for the quarter, which was broad-based across all store cohorts.

Customer Metrics: Repeat revenue contribution increased to 60%, a 9 percentage point rise from the previous year. New customer additions were approximately 40,000 for the quarter. The Average Order Value (AOV) for the quarter was approximately ₹78,000, with repeat customer AOV typically 20-30% higher than that of new customers.

Inventory: The total inventory value as of June 30, 2026, was approximately ₹2,800 crores, up from ₹2,650 crores in March 2026. Management expects the blended inventory turnover to improve towards 1.7-1.8x as store cohorts mature.

Studded Mix: The contribution of studded jewellery to revenue was 57% for the quarter.

Marketing Spend: Marketing expenditure for the quarter was ₹50 crores, constituting 6.9% of revenue, consistent with the year-ago period. The long-term goal is to reduce this to around 4.5-4.6%.

Strategic Commentary and Outlook

Business Model: Management emphasized its identity as a consumer internet company operating in the jewellery category, with over 80% of sales originating online. The integrated online-to-offline journey and a focus on design and technology were highlighted as key differentiators. 95% of products are manufactured in-house to protect design integrity.

Growth Strategy: The long-term target is to achieve revenue of approximately ₹12,000 crores over the next four years. This is expected to be driven by a combination of ~30% fundamental same-store sales growth (SSSG) at maturity and a ~20% CAGR in store count (distribution growth).

Market Environment: Demand was strong during Akshaya Tritiya but softened in May following a hike in the customs duty on gold from 6% to 15%. Demand normalized through June and into July. Management expressed that a stable gold price environment is most conducive for their business, as their customers are price-point buyers rather than investment-driven.

Hedging Policy: The company maintains a consistent hedging policy, covering 50% of its gold inventory. This policy is based on risk management objectives centered on liquidity, capital structure, and P&L impact, not on a view of gold prices.

Store Expansion: The company is on track to deliver its guided 20% annual growth in store count. New stores in Tier-2 and Tier-3 cities are larger (approx. 4,500 sq. ft.) but maintain stable unit economics due to lower rentals. Lease escalations are typically 3-5% annually.

Participants

Management Participants:

  • Mr. Gaurav Singh Kushwaha, Founder and Chief Executive Officer
  • Mr. Rumit Dugar, Chief Financial Officer

Moderator: Ms. Rhea Dharia from EY Investor Relations