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    Shanti Gold International Q1 FY27 earnings call

    SHANTIGOLD
    Consumer Durables·20 Aug 2026
    Management Summary

    Shanti Gold International Limited reported a robust Q1 FY27 with revenue growing 144.69% YoY to INR716.38 crores and PAT increasing 46.94% YoY to INR50.48 crores. The quarter was marked by the successful commencement of operations at the new Marol manufacturing facility, significantly boosting manufacturing capabilities. While the reported EBITDA margin was 9.97%, management guided for a sustainable 7.5-8% for the full year, attributing the difference to a one-time inventory gain. The company also announced a INR100 crore rights issue to support its ambitious growth plans, including further capacity expansion and market penetration.

    Highlights

    5

    • Strong revenue growth of 144.69% YoY, reaching INR716.38 crores.

    • Healthy PAT growth of 46.94% YoY to INR50.48 crores.

    • Successful commencement of operations at the new Marol manufacturing facility, enhancing capabilities.

    • Continued focus on strengthening product mix and value-added categories, contributing to improved realization.

    • Rights issue of INR100 crores approved to fuel growth and strengthen capital.

    Concerns

    2

    • EBITDA margin guidance for the full year is 7.5-8%, lower than the reported 9.97% for Q1 FY27, due to a one-time inventory gain.

    • Negative cash flow is a result of the business model requiring ready stock, which management acknowledges.

    Key financials

    Single quarter

    05 metrics
    1. 01Revenue from Operations₹716.38 Cr+144.7%YoY
    2. 02EBITDA₹71.45 Cr+39%YoY
    3. 03EBITDA Margin10.0%
    4. 04Profit After Tax₹50.48 Cr+46.9%YoY
    5. 05PAT Margin7.0%

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    0.5x EBITDA

    Guidance & targets

    11
    CategoryTargetPriority
    Profitability
    EBITDA margin
    7.5% to 8%
    		High
    Profitability
    Long-term EBITDA margin
    8% (potential to 10%)
    		Medium
    Revenue
    Revenue growth (value)
    50% to 60%
    		High
    Revenue
    Target revenue
    INR3,500 crores
    		High
    Volume
    Revenue growth (volume)
    30% to 40%
    		High
    Product Mix
    Studded jewellery revenue ratio
    75%
    		High
    Capacity
    Mumbai facility capacity utilization
    75%
    		High
    Capacity
    Jaipur facility operationalization
    Operational
    		High
    Market Expansion
    Dubai office international footprint
    Increased
    		Medium
    Growth
    Long-term growth (value)
    40% to 50% (or 50% to 60%)
    		Medium
    Growth
    Long-term growth (volume)
    30% to 40%
    		Medium

    What to watch in Q2 FY27

    5

    Jaipur facility operationalization

    November/December 2026
    CurrentUnder construction
    TargetCommercial operations

    Why it matters

    Commissioning of this new facility is key to expanding manufacturing footprint and addressing growing demand.

    the upcoming Jaipur facility will further strengthen our manufacturing footprint and support our ability to address the growing demand across markets... capex is around INR47 crores what we have allotted for Jaipur facility, and it should be operational around November, mid-November or December

    Risks & concerns

    3
    RiskSeverity

    EBITDA margin compression due to one-time gain

    Q1 FY27 EBITDA margin of 9.97% includes a 2-2.5% unrealized inventory gain from the previous year, leading to a guided sustainable margin of 7.5-8% for FY27. — Analyst acknowledged

    medium

    Increasing working capital requirements

    Growth trajectory, new facilities, and market expansion will lead to higher working capital needs, which will be funded through a prudent mix of debt and equity, keeping debt-to-equity below 1x. — Management acknowledged

    medium

    Negative cash flow from operations

    Negative cash flow is a result of the company's strategic business model of maintaining ready stock to support volume growth and customer acquisition, rather than order-to-order manufacturing. — Analyst acknowledged

    low

    Q&A highlights

    8

    “EBITDA margin would be around 7.5% to 8%... So roughly 2% to 2.5% basically comprises of the unrealized gain which we realized in this quarter. But going forward, we don't see that, because the gold is still moving in a narrow band, so we expect the margin should be around 7.5% to 8% EBITDA this year.”

    Clarifies the sustainable EBITDA margin for the year, adjusting for a one-time inventory gain in Q1, which is crucial for future profitability expectations.

    asked by Preeyam, Choice Institutional Broking

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview

    Shanti Gold International Limited reported a strong Q1 FY27, with revenue from operations surging 144.69% year-on-year to INR716.38 crores. This growth was primarily driven by healthy volume expansion, new designs, and expanded customer outreach. EBITDA for the quarter stood at INR71.45 crores, achieving a margin of 9.97%, while Profit After Tax (PAT) grew 46.94% YoY to INR50.48 crores, with a PAT margin of 7.05%.

    02

    Operational Expansion and Capabilities

    The company successfully commenced operations at its new manufacturing facility in Marol, Mumbai, during Q1 FY27, marking a significant enhancement in manufacturing capabilities and flexibility. This facility is expected to support growing customer requirements and improve production efficiency. Additionally, a new Jaipur facility, with an allocated capex of INR47 crores, is slated to become operational around November or December, further strengthening the manufacturing footprint.

    03

    Financial Outlook and Margin Trajectory

    While Q1 FY27 reported an EBITDA margin of 9.97%, management clarified that the sustainable EBITDA margin for the full year FY27 is expected to be in the range of 7.5% to 8%. The higher Q1 margin included a 2-2.5% unrealized inventory gain from the previous year. Long-term, the company aims to gradually increase its EBITDA margin towards 10% over the next three to four years, driven by new facilities and technological advancements.

    04

    Growth Strategy and Market Expansion

    Shanti Gold is targeting a revenue growth of 50-60% in value terms and 30-40% in volume terms for FY27, aiming for a total revenue of INR3,500 crores. The company's strategy includes continued focus on strengthening its presence in key domestic markets, expanding export business, and deepening customer relationships. The Dubai office, awaiting RBI approval, is expected to significantly increase the international footprint, tapping into a huge potential market.

    05

    Capital Allocation and Funding

    To support its growth ambitions, the company has approved a rights issue aggregating INR100 crores, which opened on August 20, 2026. This fundraise will be utilized for growth plans and working capital requirements. The current net debt-to-equity ratio stands at 0.50, and management aims to maintain it below 1x, ensuring prudent financial management while fueling expansion. The company's business model involves maintaining ready stock, which contributes to negative cash flow but supports volume growth.

    06

    Product Mix and Customer Engagement

    The company's product strategy emphasizes strengthening its product mix, particularly in value-added categories like designer and Turkish jewellery, which contribute to improved realization. Approximately 75% of the revenue comes from studded jewellery. Management focuses on both deepening engagement with existing customers through new designs and expanding across new geographies and customer segments to drive continuous growth.

    This is an AI-generated summary of a publicly available earnings call transcript.