Company Overview

Shanti Gold International Limited (BSE: 544459, NSE: SHANTIGOLD) reported exceptional financial performance for FY 2025-26 with revenue surging 82.46% to ₹2,018.71 crore and profit after tax increasing 159.01% to ₹140.15 crore. The company demonstrated strong three-year CAGR with revenue growth of 68.45% and PAT growth of 128.38% from FY23-FY26.

Financial Performance & Operations

Revenue was primarily driven by 22KT Gold Jewellery (92.7% of total revenue at ₹18,713.17 million), with domestic sales constituting 95.9% of product sales. The company achieved jewellery volume growth of 15.2% to 1,747.8 kg. Key financial ratios improved significantly with current ratio at 3.31 times (from 1.44 in FY25) and debt-equity ratio reducing to 0.36 (from 1.77 in FY25).

Capacity Expansion & Facilities

The company completed capacity expansion with commissioning of Mumbai-Marol facility adding ~4,000 kg per annum capacity in June 2026. Existing Mumbai-Andheri facility operates at 2,700 kg capacity, while Jaipur facility at Mahindra World City (adding 1,200 kg) is under development. Total installed capacity will reach ~7,900 kg once fully operational.

Corporate Actions & Capital Raising

Shanti Gold successfully completed its IPO in August 2025, issuing 1,80,96,000 equity shares at ₹199 per share raising ₹360.11 crore. Post-year end, the company completed Rights Issue of 46,43,471 equity shares at ₹215 per share raising ₹99.83 crore. IPO proceeds utilization included ₹200 crore for working capital, ₹17 crore for borrowing repayment, and ₹46.01 crore for general corporate purposes, with ₹45.25 crore remaining unutilized primarily for Jaipur facility capex.

Banking Facilities & Security

Working capital facilities totaling ₹2.21 billion were secured from Saraswat Co-operative Bank (₹1,245 million), HDFC Bank (₹500 million), and YES Bank (₹465 million) against personal guarantees of directors and pari passu charge on current assets, plant & machinery, and specific properties. Interest rates range between 8-11.50% repayable on demand.

Accounting Policy Change

The Board approved voluntary change in inventory valuation from FIFO to Weighted Average Cost method effective retrospectively from April 1, 2024, reducing reported profit before tax by ₹703.54 million for FY26 to ₹1,843.75 million.

Corporate Governance & AGM

The 13th AGM is scheduled for September 28, 2026, with agenda including adoption of financial statements, re-appointment of directors, and special resolutions to increase borrowing limit to ₹2,000 crore and create charges on assets. The company maintains strong corporate governance with 6 directors (4 non-executive, 3 independent) and held 15 board meetings during FY26.

International Expansion & Subsidiaries

Post-year end, the company incorporated Shanti Gold Jewellery Trading L.L.C. S.O.C. in Dubai as a wholly-owned subsidiary to support international business expansion, marking its first overseas venture.

Risk Factors & Compliance

The company faces risks from gold price volatility, working capital intensity, and geopolitical factors. It confirmed regulatory compliance with no material orders from regulators or courts, no fraud instances, and all related party transactions at arm's length. CSR expenditure of ₹92.99 lakhs was incurred during the year.