Revenue from operations grew 22% year-on-year (YoY) to ₹2,660 crore.
Retail revenue increased 31% YoY to ₹2,061 crore, supported by a Same Store Sales Growth (SSSG) of 25.5%.
Franchisee revenue recorded strong growth of 35% YoY.
E-commerce revenue reduced by 84% YoY due to a strategic recalibration of the product mix, deliberately reducing low-margin coin sales to focus on higher-margin jewellery products.
Gross profit grew 32% YoY to ₹339.8 crore, with gross margin expanding by 89 basis points (bps) to 12.7%.
EBITDA increased 57% to ₹224.6 crore, with an EBITDA margin expanding 186 bps to 8.4%.
Excluding an unhedged inventory gain of ₹5 crore, adjusted EBITDA grew 60% to ₹209.6 crore, with an adjusted EBITDA margin improving to 8.2% from 6.3% a year ago.
Profit After Tax (PAT) grew 53% YoY to ₹121.1 crore, with a PAT margin of 4.5%.
Adjusted PAT increased 57% to ₹117.4 crore, with the adjusted PAT margin improving to 4.4% from 3.3%.
Basic Earnings Per Share (EPS) stood at ₹8.7 compared to ₹5.8 in Q2 FY26.
Financial Performance for H1 FY27
Revenue grew 31% to ₹5,079 crore.
PAT grew 52% to ₹226.5 crore.
Operational and Strategic Highlights
The company rebranded its LiteStyle offering as YOOU by PNG, a lightweight diamond jewellery brand for younger, style-conscious consumers. The stud ratio for YOOU rose to 53.1% from 32.9% last quarter.
On October 1, 2026, the company completed the 100% acquisition of Silvostyle, a fast-growing silver fashion jewellery brand. Silvostyle grew revenue at a 64% CAGR and PAT at a 99% CAGR between FY24 and FY26 and operates 18 stores and approximately 68 shop-in-shops.
The company now operates under a '1 House, 3 Brands' portfolio: PNG (legacy), YOOU, and Silvostyle.
The company raised ₹700 crore through a Qualified Institutional Placement (QIP), which was oversubscribed 1.5x.
CRISIL reaffirmed the company's credit rating at A+ with a stable outlook.
The company works with over 100 Karagir associations and more than 180 vendor associations.
Store Expansion and Geographic Performance
The quarter ended with a total of 80 stores (79 in India, 1 in the U.S.).
This includes 7 company-owned stores across Uttar Pradesh, Madhya Pradesh, Bihar, and Haryana.
Stores in the Northern and Central regions recorded a stud ratio of 17.4%, well above the company average of 11.9%.
The company remains on track to open 23 new stores in FY27, taking the total store count to approximately 103 by year-end.
Expansion will be primarily franchisee-led across both legacy and YOOU formats.
The Ayodhya store is operational, and the Prayagraj store is scheduled to open on November 4, 2026.
Of the planned additions, 8 to 10 openings are targeted in Q3, with the remainder in Q4.
The share of retail revenue from Northern and Central regions increased to 2.7% in Q2 FY27 from 0.7% in Q2 FY26.
Product Mix and Customer Metrics
The retail stud ratio improved to 11.9% compared to 9% in Q2 FY26 and 10.96% in Q1 FY27.
Diamond jewellery recorded growth of 21% in value and 11% in volume.
Gold jewellery grew by 47% in value and 4% in volume.
Gold bar and coins reduced by 24% in value and 48% in volume, now accounting for 15.8% of retail revenue, down from approximately 22% in the previous quarter.
68% of gold bar and coin purchases were converted into jewellery purchases this quarter, compared to 53% in the previous quarter.
Customer footfalls exceeded 178,000, with a conversion rate of 88.6% and an average transaction value of ₹1.22 lakh.
Risk Management and Capital Allocation
The company strengthened its risk management framework, raising hedge coverage to approximately 80% to make earnings more resilient to gold price swings.
Capital allocation will focus on high-return store expansion, festive and wedding season inventory, the integration of Silvostyle, digital investments, and higher hedge coverage.
The company had a net worth of ₹2,865 crore as of September 30, 2026.
The QIP proceeds of ₹700 crore are primarily parked in bank FDs (₹1,191 crore as of Q2 end, up from ₹554 crore last quarter) to be deployed for working capital needs and expansion.
The company plans to reduce borrowings by 20%-25% by FY29/FY30.
Guidance and Outlook
For FY27, the company is targeting revenues in the range of ₹13,000 crore plus.
PAT margin guidance is 4% to 4.2%.
For the longer term (FY27-FY29), the company aspires to a revenue CAGR of around 25% year-over-year, potentially reaching around ₹21,000 crore by FY29.
Management expressed confidence in the festive season (Diwali) and wedding season demand, noting healthy bookings and interest from customers.
Q&A Session Highlights
Gross Margin: The 50 bps quarter-on-quarter dip in gross margin was attributed to an increase in the franchisee revenue share (to 17% from 12% in Q1).
Festive Shift: The Navaratri season shifted to Q3 FY27, pushing an estimated ₹200 crore of revenue from Q2 to Q3.
Expansion Strategy: The FY27 expansion is franchisee-led. From FY28 onwards, the plan is a 50-50 allocation between company-owned (COCO) and franchisee-owned (FOCO) stores for both legacy and YOOU formats.
Northern Expansion Economics: New stores in UP are achieving a stock turn of 1.1x (against a projection of 1x) and revenue of ~₹60 crore (against a projection of ₹50-55 crore). The stud ratio is 17% (against a projection of 15%). Mature stores are expected to achieve 3.5-4x stock turns, ~₹200 crore revenue, and a 22-25% stud ratio.
Inventory Turnover: The consolidated inventory turnover for Q2 stood at 3.7x. Management stated this level is sustainable and among the best in the industry, reflecting a strategic shift towards higher-margin jewellery over bars/coins.
YOOU Brand: The YOOU brand is expected to mature at an inventory turnover of 1.8-2x.
Capital Efficiency: The shift towards the FOCO model improves Return on Capital Employed (ROCE) as it requires minimal capital deployment from PNG.
Franchisee Model: For a new franchisee store, PNG makes an initial outright sale of inventory (avg. ~₹50-55 crore worth) to the franchisee on day zero, followed by regular replenishment sales.
