P N Gadgil Jewe.

P N Gadgil Jewellers achieved a significant milestone in FY26, crossing INR10,000 crores in revenue for the first time, reaching INR10,739 crores, a 40% year-over-year growth. This was supported by an 83% increase in gross profit to INR1,302 crores, with gross margin expanding by 280 basis points to 12%. The fourth quarter of FY26 also saw robust performance with consolidated revenue growing 123% year-over-year to INR3,544 crores, driven by a strong wedding and festive season and record event-led sales, including a Foundation Day sale of INR365 crores and Gudi Padwa sale of INR171 crores (38% YoY growth).

Despite strong revenue growth, Q4 FY26 gross margins moderated to 9.7%, a 2.3% (230 bps) decline year-over-year. This was primarily attributed to three factors: a higher share of lower-margin gold bars and coins in the sales mix (rising from 28% in Q4 FY25 to 40% in Q4 FY26), a 1% lowering in the studded jewellery mix due to one-time^📎 promotional offers, and marketing/trade discounts exceeding INR50 crores. Management emphasized that these impacts are largely one-time^📎 and mix-driven, not structural, with full-year gross margins still achieving 12%.

In FY26, the company expanded its network by adding 25 new stores, bringing the total count to 78 as of March 31, 2026. Q4 alone saw 12 new store additions, comprising 8 COCO (3 legacy, 5 LiteStyle) and 4 FOCO (1 legacy, 3 LiteStyles) stores. This expansion strengthened presence in Maharashtra and facilitated entry into new potential markets like Uttar Pradesh (Gorakhpur, Banaras). For FY27, management plans to open 5 COCO and 20 franchise stores, focusing on new locations such as Gurgaon, Lucknow, and Gujarat, continuing an asset-light expansion strategy.

The higher share of gold bars and coins, which rose to 40% of sales in Q4 FY26, significantly impacted margins due to their thin 0.5-1% gross margins. Management views this as a temporary shift driven by investment demand and geopolitical factors, expecting it to stabilize at 20-22% or lower in FY27, with a focus on converting these to new jewellery. To mitigate margin volatility, the company increased its hedging from 57% in Q4 FY25 to 67% in Q4 FY26 and aims to further increase it to 75-80% in FY27.

P N Gadgil Jewellers revised its FY27 revenue guidance upwards to INR13,500 crores (from a previous INR12,000 crores), citing the strong outperformance in FY26 (achieved INR10,739 crores against a INR9,500 crores guidance) and robust response from new stores outside Maharashtra, which now contribute 10% of the business. The company also maintained its FY27 EBITDA margin guidance at 7-7.5% and PAT margin at 4%. Operational metrics for FY26 included an average revenue per store of INR137.7 crores, net profit per store of INR5.25 crores, and an inventory turnover ratio of 3.8x.

The company's expansion into new geographies has shown promising results, with non-Maharashtra stores contributing 10% of the total business. New stores in regions like Bihar, UP, and Indore are performing well, exceeding initial expectations with annualized stock turns of 1x in their first year, compared to a guidance of 0.8x. While the overall inventory turnover ratio for FY26 was 3.8x, management noted that the recent opening of 8 COCO stores in Q4, which are yet to mature into sales, had a temporary impact on the ratio.