Consolidated Revenue: Grew by 67% year-on-year (YoY), crossing ₹3,000 crore in a single quarter for the first time.
Retail Sales Growth: Increased by 50% YoY.
Same-Store Sales Growth (SSSG): Approximately 39% YoY.
EBITDA: ₹213 crore at a 7.0% margin.
Consolidated Profit After Tax (PAT): ₹101 crore at a 3.3% margin.
Average Selling Price (ASP): Increased by 40% YoY.
Average Transaction Value (ATV): Increased by 38% YoY.
Average Gold Price: Increased by 61% YoY and 1% quarter-on-quarter (QoQ).
Quarterly Performance Analysis
Monthly Sales Breakdown: April contributed approximately 55% of quarterly sales (₹1,500-1,600 crore), while May and June averaged ₹500-600 crore per month.
Demand Drivers: Strong performance during Poila Boishakh and Akshaya Tritiya festivals, supported by summer wedding season demand.
Headwinds: West Bengal elections, Adhik Maas (inauspicious period), and heat wave affected footfalls in May and June.
Sales Composition: Old gold exchange accounted for 43% of total sales quantity (blended basis) and over 55% for company-owned stores.
Diamond Jewellery: Sales increased by 43% in value and 18% in volume.
Grammage: On a 24-carat equivalent basis, grammage declined by approximately 1%.
Operational and Strategic Updates
Store Expansion: Added 3 company-owned company-operated (COCO) stores, 4 franchise stores, and 1 Sennes showroom (focused on lab-grown diamonds) during the quarter.
Future Expansion: Plans to open 12-15 additional stores in FY27, with a majority being franchise stores focused on East and North India.
Product Innovation: Launched new men's jewellery collection 'Aham' combining titanium with gold and diamonds, priced between ₹20,000 and ₹1 lakh. Continued focus on lightweight jewellery collections including 9-carat and 14-carat offerings.
Design Development: Company launches approximately 100 new designs daily through its factory subsidiary.
Margin Analysis and Guidance
Sustainable EBITDA Margin: Management reiterated guidance of 7.5%-7.8% for FY27, considering Q1 FY26's reported 10.1% margin included 1.5%-2% from inventory gains.
Q1 FY27 Margin Drivers: Affected by gold price decline, competitive discounting, and old gold exchange schemes. Partially offset by customs duty benefit estimated at ₹12-15 crore for the quarter (based on 45 days of impact).
Other Expenses: Increased to approximately ₹195 crore from ₹80 crore in previous periods due to store renovations, customer schemes, and brand-building initiatives (management indicated this is quarter-specific). Marketing spend decreased by 19% to ₹35 crore.
Hedging Strategy: Maintained at approximately 50% of inventory under Board-approved policy. Long-term goal to increase to 75%-80% as volatility reduces.
Subsidiaries and Working Capital
Factory Subsidiary: Captive design and jewellery supply hub performing well.
Sennes Fashion Limited: Startup phase focusing on lab-grown diamonds, perfumes, and leather bags, currently affecting consolidated PAT.
Dubai Entity: Also contributing to consolidated PAT pressure.
Inventory Days: Approximately 152 days, showing improvement from previous periods.
Gold Metal Loans (GML): Availability was constrained during March-April due to bank caution, geopolitical uncertainty, and discussions around duty changes. Situation has normalized since then.
Cash Flow: To be disclosed with H1 results; may appear negative due to accounting treatment of lower GML borrowing.
Outlook and Guidance
Current Trading: July and August showing approximately 25% YoY growth and 8%-10% improvement over May-June levels.
Q2 FY27: Seasonally softer quarter focused on inventory building for festive season.
FY27 Revenue Guidance: Maintained at 20%+ value growth (implies revenue exceeding ₹10,000 crore vs. ₹8,430 crore in FY26). To be revisited after Q3 results.
Long-term Vision: Target of reaching ₹20,000+ crore revenue and 300+ stores over next 4-5 years.
Margin Targets: Aiming to achieve 8% EBITDA margin (through higher stud ratio), 4.5%-5% PAT margin, and improve return on equity/return on capital employed toward 20%.
