The jewellery retailer posted a 51.9% year-on-year rise in consolidated net profit to ₹105.3 crore, while revenue increased 40.7% to ₹2,413 crore. EBITDA grew 65.8% to ₹182.4 crore, helping EBITDA margin improve to 7.56% from 6.41% a year ago.
The stock was trading higher at ₹672 on the NSE in afternoon trade following the earnings announcement.
Retail business continues to lead growth
The June quarter reinforced a trend that management had highlighted in its earlier business update, retail continues to be the primary growth engine for the company.
Retail revenue grew 56% year-on-year, supported by an impressive 46% same-store sales growth (SSSG), suggesting that much of the growth was driven by stronger demand at existing outlets. Retail contributed nearly 78% of total revenue during the quarter, increasing its share in the overall business mix.
The company also said the proportion of lower-margin gold bullion sales within retail revenue had normalised to around 22%, while a higher contribution from retail and studded jewellery continued to improve the quality of revenue.
Diamond jewellery remained another bright spot. The retail stud ratio improved to 10.9%, with recently opened stores across North and Central India already reporting a significantly higher stud ratio than the company’s more established stores in Maharashtra and Goa.
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Meanwhile, the franchise business grew 8% year-on-year, while e-commerce revenue rose 20%, providing additional support to overall growth.
Expansion plans remain firmly on track
P N Gadgil Jewellers ended the June quarter with 78 stores, including 77 in India and one in the US.
Management reiterated that it remains on track to open around 25 new stores during FY27, taking its total network to roughly 103 outlets by the end of the financial year. The expansion will largely follow a franchise-led model across Maharashtra, Uttar Pradesh, Bihar, Central India and the National Capital Region.
The company also reaffirmed that it remains on course to achieve its previously guided gross margin and EBITDA margin targets for FY27.
The latest quarterly performance builds on the momentum seen in the March quarter, when P N Gadgil had delivered healthy earnings despite elevated gold prices.
