Key Financial Performance

Revenue: The company reported standalone net revenue of ₹7,332 million for Q1 FY27, representing a 48.8% year-on-year (YoY) growth compared to ₹4,926 million in Q1 FY26.

Profitability:

  • Pre-IndAS EBITDA stood at ₹548 million, a 134.6% YoY increase from ₹233 million in Q1 FY26.
  • Pre-IndAS EBITDA margin expanded by 273 basis points YoY to 7.5% from 4.7%.
  • Adjusted Profit After Tax (PAT) was ₹138 million (1.9% margin), a significant turnaround from a loss of ₹213 million (-4.3% margin) in Q1 FY26.
  • Reported PAT was ₹111 million (1.5% margin), compared to a loss of ₹328 million (-6.7% margin) in Q1 FY26.

Margins:

  • Gross margin was 40.7% for Q1 FY27, compared to 43.3% in Q4 FY26 and 41.1% in Q1 FY26.
  • Contribution margin was 36.1% for Q1 FY27, compared to 39.1% in Q4 FY26 and 36.5% in Q1 FY26.
  • Contribution margin excluding inventory gains/losses was 32.7% for Q1 FY27, compared to 31.5% in Q4 FY26 and 31.8% in Q1 FY26.

Operational Highlights

Store Network: The company expanded its distribution by adding 12 new stores during the quarter, taking the total store count to 352 as of June 2026, up from 340 at the end of March 2026 and 292 in June 2025.

Geographic Expansion: City coverage increased from 134 cities in March 2026 to 139 cities in June 2026, with all 5 new cities being Tier 2 and Tier 3 markets.

Consumer Metrics:

  • Same-store sales growth (SSSG) was 39% YoY, ahead of the 34% growth seen in Q4 FY26.
  • The number of customers (lifetime) reached 984,766, a 21% YoY increase from 815,910 in Q1 FY26.
  • Average Order Value (AOV) increased to ₹78,081 from ₹74,816 in Q4 FY26 and ₹55,499 in Q1 FY26.
  • Repeat consumers accounted for 59.7% of revenues.
  • Studded revenue share improved to 57.3% from 55.3% in the previous quarter.

Advertising & Marketing: A&P spending was ₹508 million (6.9% of revenue), flat YoY as a percentage of revenue despite the 50% larger revenue base. The sequential increase from 6.1% in Q4 FY26 was attributed to seasonality and IPL timing.

Capital Structure and Debt

Debt Position:

  • Gross debt stood at ₹6,995 million as of Q1 FY27, down from ₹7,443 million in Q4 FY26 and ₹7,345 million in Q1 FY26.
  • Net debt was ₹4,536 million, compared to ₹3,469 million in Q4 FY26 and ₹6,419 million in Q1 FY26.

Additional Financial Details

Employee Costs: Total employee benefits expense was ₹738 million, including ESOP expenses of ₹184 million.

Depreciation and Amortization: Total depreciation and amortization expense was ₹591 million.

Finance Costs: Total finance costs were ₹547 million, comprising interest and others (₹278 million), interest on franchisee deposit (₹92 million), and interest on lease liabilities (₹178 million).

Cash PAT: Net Cash PAT was ₹567 million, calculated as profit before tax plus depreciation and amortization, finance cost on lease, ESOP expenses, minus rent payment.

Management Commentary Insights

The company attributed its strong performance to:

  • Expanding portfolio with deepening consumer relevance
  • Strong SSSG across all store cohorts
  • Growing consumer base and higher repeat consumer spending
  • Differentiated proposition around lifestyle and occasion-driven jewellery
  • Operating leverage from scaling revenue against a slower-growing cost base

The company noted some demand holdback in May 2026 following the increase in customs duty on gold from 6% to 15%, but stated that demand normalized through June 2026.

Store Operations

No store closures occurred during the quarter. The company does not consider relocations within an area as closures.

Consolidated Performance

On a consolidated basis:

  • Net revenue was ₹7,368 million, up 49.6% YoY
  • Gross margin was 41.4%
  • EBITDA was ₹1,068 million (14.5% margin)
  • Adjusted EBITDA was ₹1,260 million (17.1% margin)
  • PAT was ₹60 million (0.8% margin)