P N Gadgil Jewellers Ltd Q4 FY26 Earnings Analysis

- FY ‘26 revenue is expected to exceed guidance, potentially reaching around INR 10,000 crores. - For FY ‘27, the company targets 20%-25% growth over FY ‘26, aiming for around INR 12,000 crores in revenue. - Gold volume growth saw a 25% increase in Q3, with single-digit or flat YoY volume growth overall. - Store expansion planned with 25 new stores in FY ‘27, split 50%-50% between PNG and Litestyle formats. - Focus on increasing studded jewellery ratio from current ~10% to 13%-14% over the next 3-4 years, supporting margin improvement. - Growth driven by both new and existing stores, alongside an increasing contribution from e-commerce. - Expansion and growth financed primarily through internal accruals, with no immediate debt plans.

- **Revenue Target:** INR 11,500 to INR 12,000 crores for FY ‘27, indicating continued top-line growth. - **Store Expansion:** Planning 25 new store openings in FY ‘27 (50% PNG, 50% Litestyle), with emphasis on Maharashtra and Central India. - **EBITDA Margins:** Sustainable annualized EBITDA margin expected at 7% to 7.25%, with retail segment margins around 8% to 8.25%. - **PAT Margins:** Sustainable PAT margins anticipated to be around 3.75% to 4% overall; retail segment PAT margin sustainable at approximately 5.5%. - **Studded Jewellery Mix:** Aim to increase studded jewellery ratio from current ~10% to 13-14% over the next 3-4 years, supporting margin expansion. - **Volume Growth:** Gold volume growth seen around 25% in recent quarters; YoY volume growth expected to be single-digit or flat due to price dynamics. - **QIP Plans:** To fund expansion; timelines and amounts yet to be finalized. - **E-commerce:** Significant growth continuing, complementing retail with margin-accretive business.

- Capex per PNG store: Around INR 2 Crores for store fit-outs. - Capex per Litestyle store: Around INR 70 lakhs. - Franchise stores' capex is borne by franchisees, so no cost to the company. - Inventory requirement for company stores: Approximately INR 55 crores (gold, diamond, silver combined). - Inventory for Litestyle: Between INR 8 to INR 10 crores. - For the next 2-3 years, no major changes expected in capex and inventory numbers, barring price fluctuations. - Planned store additions: 25 new stores next financial year, split evenly between PNG and Litestyle formats. - Expansion funded primarily through internal accruals without needing further debt. - Franchise expansion to accelerate outside Maharashtra; focus on company-owned stores first for proof of concept in new states.

- No definitive plans have been finalized for a Qualified Institutional Placement (QIP) or any promoter stake sale yet; discussions are ongoing and updates will be shared once confirmed. - The QIP approval is effective until August 2026, intended primarily to fund future expansion. - The company is monitoring geopolitical developments before finalizing QIP timing. - Expansion for PNG stores is planned to be funded through internal accruals; no additional debt is expected for growth. - Franchise stores' capex is borne by franchisees, not the company. - Overall, as of now, no major new fundraising through debt or equity has been undertaken or planned imminently, pending further decisions.

The transcript provided on pages 6 to 21 of the P N Gadgil Jewellers Limited report dated February 10th, 2026 does not contain any information on the current or expected order book or pending orders for the company. The discussion primarily covers topics such as: - Capex per store and inventory requirements. - Shareholding and QIP plans. - Customer preference trends between bullion and jewellery. - Revenue and volume growth guidance. - Gross and EBITDA margin sustainability. - Store expansion plans including Litestyle and geographical diversification. - Hedging strategies related to gold prices. - Performance and strategy in new markets like UP and Bihar. No specific details or figures regarding order book or pending orders were mentioned.