Key Financial Performance (Q1 FY27 vs Q1 FY26)

  • Revenue from Operations: ₹716.38 crores (vs ₹292.78 crores), growth of 144.69% YoY
  • EBITDA: ₹71.45 crores (vs ₹51.41 crores), growth of 39% YoY
  • EBITDA Margin: 9.97%
  • Profit After Tax (PAT): ₹50.48 crores (vs ₹34.36 crores), growth of 46.94% YoY
  • PAT Margin: 7.05%

Operational Highlights

  • Volume Growth: 61% YoY driven by customer expansion and new designs
  • Product Mix: 75% studded jewellery, 25% plain gold jewellery
  • Export Contribution: 4% of total revenue in Q1 FY27
  • Capacity Utilization: 75% at existing facilities

Manufacturing Capacity Expansion

  • Marol Facility (Mumbai): Commenced operations in June 2026, adds 4-ton capacity
  • Jaipur Facility: Under construction with ₹47 crores capex, expected operational by November-December 2026
  • Total Capacity: Current 2.7 tons, expanding to 6.7+ tons with new facilities

Capital Structure & Fundraising

  • Rights Issue: Approved 46,43,471 equity shares (face value ₹10) aggregating ₹100 crores
  • Share Capital: Post-rights issue will be approximately ₹7.67 crores (from current ₹7.2 crores)
  • Current Debt-Equity: 0.50, planned to remain below 1.0
  • IPO History: Raised 1,80,96,000 shares in IPO from initial capital of ₹5.40 crores

Margin Analysis

  • EBITDA Margin Drivers: 2-2.5% came from inventory gain due to accounting method change from FIFO to WAC
  • Sustainable Margin Guidance: 7.5-8% EBITDA margin for FY27 (excluding one-time inventory gain)
  • Other Expenses: Increased 132% YoY, in line with revenue growth trajectory

Business Strategy & Guidance

  • FY27 Volume Growth Guidance: 30-40% YoY
  • FY27 Value Growth Guidance: 50-60% YoY
  • Revenue Target: ₹3,500 crores for FY27
  • Focus Areas: Capacity expansion, market expansion, product mix enhancement
  • Geographic Expansion: Recently entered North Indian markets, expanding international footprint through Dubai office

Working Capital & Cash Flow

  • Working Capital Model: Maintains ready inventory rather than order-to-order basis
  • Cash Flow: Historically negative due to inventory stocking business model
  • Gold Inventory Management: Uses Gold Metal Loan (GML) for natural hedging, resumed after period of high volatility

Management Commentary

  • Industry Outlook: Constructive for organized jewellery supported by wedding demand, rising incomes, and shift to branded jewellery
  • Gold Price View: Long-term bullish despite short-term jitters, currently trading in ₹142-150 range
  • Growth Drivers: New designs, customer relationships, manufacturing scalability, and organized retail shift

Q&A Session Highlights

  • Capacity: Marol facility new and scaling up, Jaipur to add different jewellery lines
  • International Business: Dubai office awaiting RBI approval, expected to significantly increase international footprint
  • Product Development: Capable of manufacturing 14k, 18k, and 22k jewellery based on customer demand
  • Growth Sustainability: Believed sustainable for several years given small market share relative to industry size

Participants

  • Management: Pankajkumar Jagawat (Chairman & MD), Shriram Iyengar (CFO)
  • Moderator: Smit Shah (Adfactors PR)
  • Analysts: Multiple participants from institutional and retail investors