Shankesh Jewellers Limited – Investor Presentation Summary

Key Operational Highlights

  • 30+ years of industry experience in handcrafted gold jewellery with pan-India presence
  • Diverse customer base across corporate and non-corporate segments
  • Offers 22 Karat and 18 Karat gold jewellery including antique, semi-antique, temple, and various gold finish jewellery
  • Strong network of Mumbai-based karigars with relationships spanning 10-30 years
  • Business process includes procurement of raw materials, design outsourcing, quality checks, finishing, and sales through multiple channels

Segment-wise Performance

  • Corporate Clients: ₹280 Cr (66% of total revenue) in Q1FY27
  • Non-Corporate Clients: ₹144 Cr (34% of total revenue) in Q1FY27
  • 22 Karat Jewellery: ₹337 Cr (79.5% of total revenue) in Q1FY27
  • 18 Karat Jewellery: ₹85 Cr (20% of total revenue) in Q1FY27
  • Job Work: ₹3 Cr (0.7% of total revenue) in Q1FY27

Financial Highlights

  • Revenue: ₹423.6 Cr in Q1FY27, up 55% YoY from ₹273.2 Cr in Q1FY26
  • EBITDA: ₹61.2 Cr in Q1FY27, up 92% YoY from ₹31.8 Cr in Q1FY26
  • PAT: ₹43.2 Cr in Q1FY27, up 100% YoY from ₹21.6 Cr in Q1FY26
  • EPS: Not specified
  • Margins: Gross Margin 15.6% (323 bps improvement YoY), EBITDA Margin 14.4% (279 bps improvement YoY), PAT Margin 10.2% (230 bps improvement YoY)
  • YoY comparison: All key metrics showed significant improvement year-over-year
  • Drivers of financial performance: Improved operating leverage, profitability, and strong customer relationships

Geographical Revenue Split

  • West India: ₹530 Cr (32% of total) in FY26
  • East India: ₹459 Cr (28% of total) in FY26
  • South India: ₹346 Cr (21% of total) in FY26
  • North India: ₹296 Cr (18% of total) in FY26
  • Established core markets: Maharashtra, Bihar, Odisha, Tamil Nadu, and Uttar Pradesh
  • Focus on expanding in high-growth markets: Haryana, Punjab, and Himachal Pradesh

Balance Sheet Snapshot

  • Shareholder's Equity: ₹209.4 Cr as of Mar-26
  • Long Term Borrowing: ₹0.3 Cr as of Mar-26
  • Short Term Borrowing: ₹168.1 Cr as of Mar-26
  • Inventories: ₹240.0 Cr as of Mar-26
  • Trade Receivables: ₹126.4 Cr as of Mar-26
  • Cash and cash equivalents: ₹0.0 Cr as of Mar-26
  • Financial Health Insights: Strong revenue growth with increasing profitability margins

Capex & Cash Flow Health

  • Capital Expenditure: Not specified
  • Free Cash Flow: Not specified
  • Operating Cash Flow: Not specified
  • Net Debt Movement: Not specified
  • Investment Rationale: Focus on asset-light model leveraging karigar network without significant fixed infrastructure investment

Strategic & R&D Initiatives

  • Investments in co-creation with customers on design development and collections
  • Focus on custom jewellery manufacturing based on client designs and specifications
  • Large and bulk order capability through flexible karigar network
  • Custom job-work services where clients provide bullion and design requirements
  • Strategic Rationale: Expanding into high-growth markets while deepening relationships with existing corporate clients

Industry Trends & Business Environment

  • India is the 2nd largest gold market in the world with 850 Tn average gold consumption in FY24
  • Gems & jewellery contributes ~7% to national GDP and ~15% to total merchandise exports
  • Mandatory hallmarking (BIS) enhances quality assurance, giving competitive edge to organized retailers
  • Only 30% of gold jewellery is currently hallmarked
  • Q1CY25 saw 48% YoY growth in India's bar & coin demand despite high prices
  • Lightweight jewellery surging in demand, especially for daily wear (5-8 grams)
  • Impact on Company: Positioned to benefit from shift toward organized and differentiated handcrafted jewellery

Management Commentary & Growth Outlook

  • Strategic Outlook: Focus on sustainable growth, deeper customer relationships, and continued value creation
  • FY Guidance: Not explicitly provided, but management expressed confidence in opportunities ahead
  • Market Share Targets: Not specified
  • Risks and Opportunities: Benefits from relatively inelastic demand for wedding jewellery and shift toward distinctive, occasion-led jewellery

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