Key Financial Performance

Full Year FY26 Performance (Consolidated)

  • Revenue: ₹10,739 crores, representing 40% year-over-year (YoY) growth
  • Gross Profit: ₹1,302 crores, representing 83% YoY growth
  • Gross Margin: 12%, expanding by 280 basis points (bps) YoY
  • EBITDA: ₹704 crores, representing 90% YoY growth
  • EBITDA Margin: 6.6%, improving by 180 bps YoY
  • PAT: ₹410 crores, representing 88% YoY growth
  • PAT Margin: 3.8%, expanding by 100 bps YoY
  • ROCE: 30.5% (improved YoY)
  • ROE: 21% (improved YoY)

Q4 FY26 Performance (Consolidated)

  • Revenue: ₹3,544 crores, representing 123% YoY growth
  • Gross Profit: ₹344 crores, representing 80% YoY growth
  • Gross Margin: 9.7%, declining 230 bps from Q4 FY25 (12%)
  • EBITDA: ₹166 crores, representing 53% YoY growth
  • EBITDA Margin: 4.7%
  • PAT: ₹90 crores, representing 46% YoY growth
  • PAT Margin: 2.5%

Operational Highlights

Store Expansion

  • Added 12 new stores in Q4 FY26 (8 COCO: 3 legacy + 5 LiteStyle; 4 FOCO: 1 legacy + 3 LiteStyle)- Total store count reached 78 as of March 31, 2026, across 36 cities
  • Added 25 new stores in FY26
  • Expanded into new markets: Gorakhpur and Banaras (Uttar Pradesh)

Segmental Performance (FY26)

  • Retail Segment: Revenue grew 51% YoY to ₹8,131 crores
  • E-commerce Segment: Revenue grew 105% YoY to ₹529 crores
  • Franchisee Segment: Revenue grew 83% YoY to ₹1,292 crores
  • Other Segments: Contributed ₹357 crores in Q4 FY26

Q4 FY26 Segmental Performance

  • Retail: ₹2,600 crores (102% YoY growth)
  • Franchise: ₹430 crores (132% YoY growth)
  • E-commerce: ₹152 crores (67% YoY growth)

Key Operational Metrics (FY26)

  • Same-Store Sales Growth (SSSG): 43% for full year; 86% for Q4 FY26
  • Average Transaction Value (ATV): Over ₹1 lakh
  • Average Revenue Per Store: ₹137.7 crores
  • Revenue Per Square Feet: ₹4,51,000
  • Net Profit Per Store: ₹5.25 crores
  • Inventory Turnover Ratio: 3.8x
  • Stud Ratio: 9.9% for full year (declined 1% in Q4 FY26)

Volume Growth (Q4 FY26 YoY)

  • Gold Volumes: Grew 27%
  • Silver Volumes: Grew 37%
  • Diamond Volumes: Grew 125%

Margin Compression Analysis

Management identified three primary factors for Q4 FY26 gross margin compression:

1. Higher Share of Gold Bars and Coins: Contribution increased from 28% in Q4 FY25 to 40% in Q4 FY26

  • Value increased from ₹450 crores to ₹1,400 crores YoY
  • This segment operates on thin margins (0.5-1% vs. 12-13% for jewelry)
  • Attributed to consumer shift from consumption to investment gold
  • All sales are B2C (no refinery or B2B business)
  • Estimated 150 bps (1.5%) margin impact

2. Lower Studded Jewelry Mix: Declined 1% in Q4 due to heavy discounting on making charges during promotional events

  • Estimated 1% margin impact

3. Promotional Discounts: Marketing promotion and trade discounts exceeded ₹50 crores during Foundation Day and Gratitude Day offers

  • Foundation Day sales: ₹365 crores
  • Gudi Padwa sales: ₹171 crores (38% YoY growth)
  • Gratitude Day sales: ₹225 crores

Additional Factors

  • Franchise Sales: Increased by ₹200 crores in Q4 with 5 new franchises
  • Franchise gross margins range 2.5-3%
  • Hedge Gains: Q4 FY25: ₹7.4 crores; Q3 FY26: ₹45 crores; Q4 FY26: ₹20 crores

Hedging Strategy

  • Monthly sales average: 600 kilos
  • Inventory held: 2,000 kilos
  • Q4 FY26 hedging: 67% (up from 55% in Q4 FY25 and 63% in Q3 FY26)
  • Full year FY26 average hedging: ~60%
  • Plan to increase hedging to 75-80% in FY27 to reduce margin volatility

Credit Rating Update

  • Long-term credit rating upgraded to A+ Stable from A
  • Short-term rating reaffirmed at A1
  • Reflects strengthened business profile and financial position

FY27 Guidance

  • Revenue: ₹13,500 crores
  • EBITDA Margin: 7-7.5%
  • PAT Margin: 4%
  • Guidance may be updated in next quarter based on market evolution

Business Mix Details

  • Old Gold Exchange: ~40% of business, expected to increase to 50%+
  • Make-to-Order Jewelry: ~30-35% of business
  • Non-Maharashtra Contribution: 10% of business
  • LiteStyle Business: ~₹70 crores (0.7% of turnover) with ~30% studded ratio

Impact of Import Duty Increase

  • Management expects minimal margin impact as duty is passed to consumers
  • Anticipates reduction in gold bar/coin sales (from 40% to ~25%)
  • Expects increased jewelry sales through old gold exchange
  • Launched "Swarna Swaraj" program to encourage old gold exchange

Store Expansion Plans (FY27)

  • Plan to open 25 new stores (5 COCO + 20 FOCO)
  • Focus on asset-light expansion
  • Expansion into UP, Bihar, MP, Gujarat, and Gurgaon
  • Most new stores will be outside Maharashtra

QIP Update

  • Enabling board resolution valid until end of August 2026
  • Not an immediate priority as business is self-sufficient
  • Will be evaluated based on market conditions

Promoter Shareholding

  • Requirement to reduce to 75% by September 2027 (listed September 2024)

Conference Call Participants

Management:

  • Dr. Saurabh Gadgil - Chairman and Managing Director
  • Mr. Deepak Vijay - Chief Financial Officer

Moderator:

  • Mr. Aayush Adukia - Nuvama Wealth Management Limited

Analysts:

  • Uchit Shah (Vimana Capital)
  • Yash Sonthaliya (Edelweiss Public Alternatives)
  • Bharat Gianani (MC Research)
  • Pallavi Deshpande (Sameeksha)
  • Anukool Arora (Inved Research)
  • Nitin Jain (Fairvalue Equity Advisory)
  • Prince Choudhary (PINC Wealth)
  • Jenil Barad (Prudent Corporate Advisory)
  • Paras Kakkar (Finance Sarthi)
  • Sandeep Abange (Individual Investor)