Financial Performance for Q1 FY27 (Unaudited)

  • Total Revenue: ₹853.63 crores, compared to ₹541 crores in Q1 FY26, representing 58% year-on-year growth.
  • EBITDA: ₹93.99 crores, compared to ₹55 crores in Q1 FY26, representing 70% year-on-year growth.
  • EBITDA Margin: 11.01%, expanded by 80 basis points from 10.21% in Q1 FY26.
  • Profit After Tax (PAT): ₹64 crores, compared to ₹36 crores in Q1 FY26, representing 77% year-on-year growth.
  • PAT Margin: 7.55%, expanded by 82 basis points year-on-year.

Revenue Mix by Category

  • Gold Revenue: ₹781 crores (Q1 FY27) vs. ₹491 crores (Q1 FY26), growth of 59% YoY.
  • Silver Revenue: ₹40 crores (Q1 FY27) vs. ₹16 crores (Q1 FY26), growth of 150% YoY.
  • Diamond Revenue: ₹29 crores (Q1 FY27) vs. ₹31 crores (Q1 FY26).

Product Category Mix

  • Wedding-related purchases: 62% of total sales.
  • Festive and lightweight jewellery: 18% of total sales.
  • Other categories and gift articles: 20% of total sales.

Operational Metrics

  • Same-Store Sales Growth: 52% on an overall basis.
  • Footfall-to-Conversion Ratio: 81%.
  • Average Ticket Size: Approximately ₹1,57,000.
  • Old Gold Exchange Contribution: Approximately 25% of total sales.

Expansion and New Initiatives

  • New Showroom in Dahod, Gujarat: 3,200 sq. ft., Company-Owned Company-Operated (COCO) model. Marks strategic entry into Gujarat market. Fit-out and development underway.
  • New Showroom in Jabalpur, Madhya Pradesh: 3,750 sq. ft., Franchisee-Owned Company-Operated (FOCO) model. First FOCO model showroom.
  • E-commerce Launch: Launched e-commerce website and mobile application on Play Store and App Store. Expanding presence on online marketplaces.
  • New Product Collection: Launched Rani Rupmati Collection, showcased exclusively in Kota.
  • Brand Building: Strategic sponsorship of Madhya Pradesh League – Scindia Cup 2026.

Business Trends and Strategy

  • Industry Context: Elevated gold prices influenced purchase decisions initially, but correction in June improved buying sentiment. Demand supported by Akshaya Tritiya, summer weddings, and regional festivities.
  • Consumer Trends: Growing interest in lightweight, daily-wear, minimalist jewellery. Increased use of old-gold exchange for new purchases.
  • Digital Engagement: Rising role of digital discovery through catalogs, online platforms, and social media before in-store purchases.
  • Government Impact: Increase in gold import duty from 6% to 15% in May 2026 introduced near-term cost sensitivity, but long-term fundamentals remain intact.
  • DP Swarna Plus Scheme: Introduced in April 2026. SIP-based scheme with minimum ticket size of ₹5,000. Allows customers to accumulate gold weight monthly and redeem against jewellery or bullion. Received strong response, with ~50 customers contributing over ₹1,00,000 per month.

Inventory and Hedging Strategy

  • Inventory Valuation: Weighted average cost of inventory is approximately ₹1,20,000, compared to current market price of ₹1,51,000-₹1,52,000.
  • Hedging Mechanisms: Real-time replenishment, exchange-based procurement, Gold Metal Loan (GML), and MCX-based hedging.
  • Inventory Turnover Ratio: 4.7x to 5.0x annually.

Management Guidance and Targets

  • Volume Growth Target: 10% for FY27 and FY28.
  • Store Expansion Target: 51 stores by FY30. Current count: 12 stores. Planned mix: 5-7 FOCO stores, remainder COCO.
  • FY27 Expansion: Target of 5-6 new stores. Two locations finalized (Dahod, Jabalpur), two more in planning, and 2-3 additional locations expected to be finalized by end of July 2026.
  • Diamond Segment Target: Increase studded mix from current 6-7% to 12-15% by March 2028.

Additional Business Details

  • Geographic Strategy: Focus on Tier II and III cities in Rajasthan, Madhya Pradesh, Gujarat, and potential entry into Maharashtra (e.g., Nagpur). No immediate plans for metropolitan markets.
  • Competitive Positioning: Built on trust, transparency, and fair dealings. Strong regional brand recognition in operating markets.
  • Formats: Two store formats - small to medium (3,000-5,000 sq. ft.) and larger format (8,000-10,000 sq. ft.).
  • Break-even Timeline: New stores typically break-even in 6-9 months.
  • Maturity Timeline: Stores reach 3x inventory turnover in 2-3 years, optimum level of 4.5-5x in 4-5 years.
  • Lightweight Brand: Amoura brand for daily-wear studded jewellery, introduced two years ago.
  • Lab-grown Diamonds: Not currently pursuing, as focus remains on natural diamonds for investment value.

Cash Flow Context

Management noted that negative operating cash flow is characteristic of the jewellery industry due to high inventory requirements (95-98% of assets), with profitability driven by making charges rather than inventory valuation gains.