P N Gadgil Jewellers reported a robust Q3 FY’26, with Consolidated Revenue from Operations growing 35.6% YoY to INR 3,302 crores. Gross Profit surged 98.2% YoY, and EBITDA grew 109.4% YoY. Management highlighted resilient consumer sentiment despite high gold prices, strong festive demand, and the strategic introduction of the high-margin LiteStyle segment, contributing 5%-6% of sales.
Q3 FY’26 Financial Highlights
P N Gadgil Jewellers announced strong financial results for the third quarter of the fiscal year 2026. Consolidated Revenue from Operations reached INR 3,302 crores, marking a 35.6% year-on-year growth. Gross Profit saw a substantial rise of 98.2% YoY, reaching INR 474 crores, leading to a Gross Margin of 14.4% (up from 13.2% in the previous quarter). EBITDA grew by 109.4% YoY to INR 271.7 crores. Net Profit surged by 98.6% YoY to INR 170.9 crores, resulting in a 5.2% Net Profit Margin for the quarter.
Nine-Month Performance Summary
For the nine months ended FY’26, Consolidated Revenue stood at INR 7,194.8 crores. Gross Profit increased 86.8% YoY to INR 957.9 crores (13.2% margin), while EBITDA grew 105.3% YoY. Net Profit increased by 104.5% YoY to INR 319.6 crores, yielding a 4.4% Net Profit Margin.
Segmental and Operational Drivers
The retail segment remains the primary growth driver, contributing 76.8% of total sales (INR 5,524.4 crores in revenue, up 34.5% YoY). The E-Commerce segment demonstrated explosive growth at 125.8% YoY, reaching INR 377.4 crores, while Franchisee Revenue rose 65.4% YoY to INR 864.8 crores.
- Customer Metrics: Transaction volumes were up 35%, with ATV at INR 1,03,065. Footfall grew 33% with a high conversion rate of 94%.
- Festive Performance: Record sales included over INR 190 crore on Dussehra and INR 606 crores on Diwali, culminating in the highest-ever monthly sale of INR 1,800 crores in October.
- Store Level: Same-store growth for the quarter was 33%. Average revenue per store stood at INR 109 crores for nine months.
- Product Mix Shift: The studded jewellery mix increased by 52% in value, with the stud ratio moving to 8.4%.
- LiteStyle Contribution: The new LiteStyle segment contributed 5%-6% of total sales and is expected to grow toward a 10% target in the future.
Geographical Expansion and Outlook
The company launched three exclusive company-owned stores, entering Patna, Bihar, bringing the total count to 66 stores by quarter-end, spanning five states. Management plans to add 11-12 new stores in the current quarter, aiming for 78-80 stores by March 2026.
Management provided guidance suggesting FY’26 revenue should cross INR 9,500 crores, possibly nearing INR 10,000 crores. For FY’27, the target is around INR 12,000 crores (a 20% to 25% growth over FY’26). Sustainable annualized EBITDA margin is projected at 7% to 7.25%, with PAT margin sustainable around 3.75% to 4%.
Q&A Insights: Margins and Strategy
The significant gross margin increase was attributed primarily to the discontinuation of the zero-margin refinery business, the 52% YoY increase in studded jewellery value, the introduction of the high-margin LiteStyle segment (contributing 5%-6%), and operational efficiencies. Management confirmed they are 100% hedged on gold price movements.
Regarding new markets like UP/Bihar, make-to-order business is lower at 25%-28% compared to 40% in Maharashtra, due to higher demand for studded and fancy jewellery, which does not typically require make-to-order.
Other expenses surged due to increased advertising (signing Brand Ambassadors Ranbir Kapoor and Sara Tendulkar) and higher commission/brokerage from e-commerce, though marketing spend is expected to remain at 1.5% of total turnover.
Future Store Guidance
For the upcoming year (FY’27), the company plans 25 new store openings, split equally between PNG stores and LiteStyle stores (50% each). The total store count is expected to reach 105 stores by March 2027.
Source: BSE
