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    P N Gadgil Jewellers Limited

    PNGJLGood
    Consumer Durables·13 Nov 2025
    Management Summary

    P N Gadgil Jewellers reported an exceptional Q2 FY26, driven by strong festive demand and strategic expansion. The company achieved significant year-over-year growth across revenue, EBITDA, and net profit, with margins expanding notably. Management expressed confidence in sustaining this momentum, fueled by ongoing store expansion into new geographies and an improved product mix, particularly in studded jewellery.

    Highlights

    8

    • H1 FY26 Consolidated Revenue from operations stood at INR 3,892 crores.

    • H1 FY26 Gross Profit came in at INR 484 crores, up almost 77% year-over-year.

    • H1 FY26 EBITDA was INR 266 crores, registering a growth of 101.3% year-over-year.

    • H1 FY26 Net Profit rose to INR 148.7 crores, higher by 111.6% year-over-year, with net profit margin expanding to 3.8%.

    • Q2 FY26 Consolidated Revenue from operations stood at INR 2,177.6 crores.

    • Q2 FY26 EBITDA grew by almost 117% to INR 142.9 crores, reflecting an EBITDA margin of 6.6%.

    • Q2 FY26 Net Profit surged by 127% year-over-year to INR 79.3 crores, with net profit margin rising to 3.6%.

    • Total store count reached 63 at the end of Q2, with 8 new stores launched during the quarter (5 COCO, 3 FOCO).

    What Changed2

    vs Q3 FY26

    Guidance items12 → 24 (+12)Q&A highlights8 → 3 (-5)

    Segment breakdown

    • E-commerce₹143.5 Cr29.6%
    • Franchisee₹340.8 Cr70.4%
    Donut· Share of Revenue

    Guidance & targets

    24
    CategoryTargetPriority
    Store Expansion
    Total store count
    76 to 78 stores
    		High
    Store Expansion
    Total store count
    150 stores
    		High
    Store Expansion
    New stores planned
    around 13 to 15
    		High
    Store Expansion
    New stores planned
    14 to 16 stores
    		High
    Store Expansion
    PNG traditional stores
    around six to seven
    		High
    Store Expansion
    LiteStyle stores
    around seven to eight
    		High
    Store Expansion
    Company-owned vs. Franchisee split for new stores
    50/50 split
    		High
    Store Expansion
    Percentage of new stores in Maharashtra
    10%, 15% (around three to four stores)
    		High
    Profitability
    Breakeven period for Maharashtra stores
    15 to 18 months
    		High
    Profitability
    Breakeven period for outside Maharashtra stores
    18 to 24 months
    		High
    Profitability
    EBITDA margin
    5.5% to 6%
    		High
    Marketing
    Marketing spend as % of total top line
    1%, 1.2%
    		High
    Marketing
    Marketing spend as % of total revenue
    1.25% to 1.50%
    		High
    Other Income
    Other income from fixed deposit
    around INR 50 crores
    		High
    Product Mix
    Stud ratio
    12%-13%
    		High
    Capex
    Capital employed per new store (3500-4000 sq ft)
    INR 47 crores to 50 crores
    		High
    Store Characteristics
    LiteStyle store size
    1,500 to max 2,000 square feet
    		High
    Store Characteristics
    LiteStyle store inventory
    INR 8 crores to INR 10 crores
    		High
    Store Performance
    LiteStyle store stock turns
    2.5 to 3
    		High
    Store Performance
    LiteStyle store revenue
    INR 25 crores
    		High
    Store Performance
    LiteStyle store gross margin
    20% to 25%
    		High
    Store Performance
    LiteStyle store breakeven period
    1 year or 1-1.5 years (15 or 16 months)
    		High
    Revenue
    Consolidated revenue from operations
    INR 3,000 crores to INR 4,000 crores
    		High
    International Expansion
    New international stores
    one store a year
    		High

    Risks & concerns

    3
    RiskSeverity

    High gold prices impacting consumer demand/volumes

    Management stated that despite rising gold prices, consumer sentiments remained highly encouraging, with demand sustained by gold's emotional value and old gold exchange. — Analyst downplayed

    medium

    User-friendliness of the P N Gadgil app

    An analyst noted issues with the app's user-friendliness; management acknowledged it and stated they are working on addressing any bugs. — Analyst acknowledged

    low

    Google search results showing competitor 'PNG Sons'

    An analyst pointed out that Google searches for 'P N Gadgil Jewellers' sometimes return 'PNG Sons'; management acknowledged this and stated they are working on it. — Analyst acknowledged

    low

    Q&A highlights

    3

    “So, I think PAT, what we have posted currently for the financial year 2026 quarter two is 3.6%. And that is without considering the refinery sale. So, that you will see in the coming few quarters as well that we will definitely try to maintain our PAT levels with the same margin.”

    Clarifies the financial performance post-discontinuation of a significant revenue stream, providing a cleaner view of core jewellery business profitability.

    asked by Raj from Finvestors

    2 min read

    Detailed Narrative

    P N Gadgil Jewellers delivered an exceptional performance in Q2 FY26, with consolidated revenue from operations reaching INR 2,177.6 crores. This strong top-line growth translated into significant profitability improvements, with EBITDA surging by 117% year-over-year to INR 142.9 crores, and net profit rising by 127% year-over-year to INR 79.3 crores. Margins expanded notably, with EBITDA margin at 6.6% and net profit margin at 3.6% for the quarter. For H1 FY26, consolidated revenue stood at INR 3,892 crores, EBITDA at INR 266 crores (up 101.3% YoY), and net profit at INR 148.7 crores (up 111.6% YoY), with net profit margin at 3.8%.

    The retail segment remained the largest growth engine, contributing 72.2% of total sales and registering a 29% year-over-year revenue growth, with healthy EBITDA and PAT margins of 9.1% and 5.1% respectively. E-commerce revenue grew by 113% to INR 143.5 crores, and franchisee revenue increased by 105% to INR 340.8 crores. The company's expansion journey progressed well, with 8 new stores launched in Q2, bringing the total store count to 63. Record sales were achieved during Navratri (INR 428 crores, up 66% YoY) and October (over INR 1,800 crores), indicating robust consumer sentiment despite rising gold prices.

    Management provided comprehensive guidance, targeting 76-78 stores by March 2026 and 150 stores by March 2028, with 14-16 new stores planned for H2 FY26, split equally between company-owned and franchisee models. They expect Q3 FY26 revenue to be between INR 3,000-4,000 crores and aim to maintain an EBITDA margin of 5.5%-6% for the full year. The stud ratio is targeted to reach 12%-13% in the next two years, reflecting a shift towards design-led products. Investment per new store is estimated at INR 47-50 crores, with breakeven periods of 15-18 months for Maharashtra stores and 18-24 months for outside Maharashtra stores.

    During the Q&A, management directly addressed concerns regarding the impact of discontinuing the refinery business, confirming that Q2 PAT margin of 3.6% is without refinery sales and they aim to maintain these levels. They also clarified that high gold prices have not impacted demand, attributing sustained interest to gold's emotional value and the significant contribution of old gold exchange (55%-60% of purchases). Working capital fluctuations were explained as a result of pre-festive inventory build-up, which normalizes post-festival. Minor concerns about the company's app and Google search results were acknowledged, with management stating they are actively working on improvements.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.