Financial Performance Summary

Q2 FY27 Results (Quarter Ended September 30, 2026):

  • Revenue from operations: ₹746 crores (vs. ₹430 crores in Q2 FY26), representing 73.4% YoY growth
  • EBITDA: ₹42.5 crores (vs. ₹36.8 crores in Q2 FY26), representing 15.6% YoY growth
  • Profit After Tax: ₹29.6 crores (vs. ₹26 crores in Q2 FY26), representing 13.5% YoY growth
  • Volume: 535.5 kgs, representing 25.4% YoY growth

H1 FY27 Results (Six Months Ended September 30, 2026):

  • Revenue from operations: ₹1,462.3 crores (vs. ₹722.9 crores in H1 FY26), representing 102.3% YoY growth
  • EBITDA: ₹114 crores (vs. ₹88.2 crores in H1 FY26), representing 29.2% YoY growth
  • Profit After Tax: ₹80 crores (vs. ₹60.4 crores in H1 FY26), representing 32.5% YoY growth
  • Volume: 1,057.6 kgs, representing 41.0% YoY growth

Operational Highlights

Capacity Expansion:

  • Commencement of operations at extended manufacturing facility in Marol
  • Added capacity and flexibility to operations
  • Enabled servicing wider range of customers and requirements
  • Supported volume growth

Product Portfolio Expansion:

  • Broadening offerings across categories including designer and Turkish jewelry
  • Deepening engagement with existing customers
  • Onboarding new retail clients

Geographical Expansion:

  • Upcoming Jaipur facility intended to introduce machine-made plain gold jewelry
  • Strengthen presence in North India
  • Complement existing manufacturing capabilities and product portfolio
  • Jaipur facility details: 3 acres land, 65,000 square feet building (increased from 50,000 sq ft)
  • Interior work ongoing, expected commissioning in January-February 2027

Fundraising Activities

Rights Issue:

  • Successfully raised approximately ₹99.83 crores through rights issue
  • Proceeds being deployed towards meeting working capital requirements
  • Expected to support business operations as company scales up
  • Entire ₹98 crores has been utilized for working capital

Financial Guidance

FY27 Revenue Guidance:

  • Maintained guidance of approximately ₹3,200 crores to ₹3,500 crores
  • Represents growth of 60% compared with FY26
  • Volume growth guidance: 25-30%
  • Company confident of achieving this range despite gold price correction from ₹150,000 to ₹140,000 per 10 grams

Margin Guidance:

  • Sustainable EBITDA margin range: 5-7%
  • Current margin moderation viewed as transitional due to growth and investment phase
  • Expect operating efficiencies to improve as utilization levels improve and new businesses mature

Debt and Working Capital Management

Debt Position:

  • Current debt-to-equity ratio: 0.5x
  • Comfortable going up to 1x debt-equity if required
  • Short-term borrowings increased during first half to meet working capital requirements

Gold Metal Loans (GML):

  • Current GML coverage: 15-20% of stock profile
  • Comfortable going up to 30% of stock level
  • Used as lever to hedge inventories
  • Risk management policy centered around natural hedging and inventory discipline

Working Capital:

  • Industry described as working capital intensive
  • More capital required for more gold and more business
  • Inventory buildup expected in initial phases of expansion
  • Balanced mixture planned between equity and debt funding

International Operations

Dubai Office:

  • All approvals in place for Dubai office
  • Expected to contribute to export sales once market settles down
  • Current export revenue: ₹82 crores (doubled from previous)
  • Export share expected to settle at 6-7% this year, with good volume expected from next year

Strategic Investments

Treasury Investments:

  • Invested approximately ₹18 crores in Ratnaveer and Lalithaa Jewelry
  • Viewed as treasury management rather than strategic diversification
  • Small, liquid investment for optimizing short-term returns
  • Priority remains heavily invested in core business

Market Position and Strategy

Competitive Positioning:

  • Positioning as one of leading manufacturers in gold segment
  • Focus on gaining market share rather than optimizing for short-term margins
  • Building comprehensive and dependable manufacturing partnership with organized retail chains

Growth Drivers:

  • Increased customer acquisition
  • Penetration with existing customers
  • Capacity expansion
  • Broader product portfolio
  • Increasing formalization in jewelry industry
  • Growing preference for organized manufacturers

Historical Performance:

  • Consistently growing at CAGR of 43% for past few years
  • Volume growth historically around 25-30%

Manufacturing Capacity Utilization

  • Target utilization: 75-80% of manufacturing capacity in coming years
  • Marol facility ramp-up ongoing
  • Jaipur facility expected to contribute once operational

Future Outlook

  • Foundation laid for future growth with manufacturing setup expansion
  • Product portfolios increased
  • Roadmap in place for continued expansion
  • Management encourages long-term perspective from investors
  • 3-5 year roadmap to be provided in next conference call

Management Participants

  • Mr. Pankajkumar Jagawat – Chairman and Managing Director
  • Mr. Shriram Iyengar – Chief Financial Officer
  • Mr. Harshil Ghanshyani – ADFACTORS PR Investor Relations (Moderator)

Forward-Looking Statements

  • Certain statements made in the call may be forward-looking in nature
  • Based on management's current expectations
  • Subject to risk and uncertainty that could cause actual results to differ materially
  • Company undertakes no obligation to publicly update or revise any forward-looking statement