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    Shanti Gold International Q4 FY26 earnings call

    SHANTIGOLD
    Consumer Durables·22 May 2026
    Management Summary

    Shanti Gold International Limited reported strong Q4 and FY26 results, with significant revenue and profit growth driven by customer traction and capacity expansion. The company successfully completed its IPO and is expanding manufacturing capabilities to meet growing demand. While geopolitical factors have delayed international expansion, management remains confident in achieving future growth targets and maintaining core profitability.

    Highlights

    5

    • Q4 FY26 Revenue from operations stood at INR 658.93 crores, registering a growth of 121.65% YoY, driven by new customers, increased volumes, and elevated gold prices.

    • Q4 FY26 EBITDA grew 217.26% YoY to INR 67.01 crores, with EBITDA margins expanding by 306 basis points to 10.17%.

    • FY26 PAT grew 159.05% YoY to INR 140.15 crores, with PAT margins improving by 205 basis points to 6.94%.

    • Successfully completed IPO and listed in August 2025, positioning the company for its next growth phase.

    • Expanded manufacturing capabilities with a new Marol facility adding 4,000 kg/annum and a Jaipur facility adding 1,200 kg/annum, bringing total capacity to 7,900 kg/annum.

    Concerns

    3

    • Dubai subsidiary incorporation timeline extended to June '26 due to geopolitical issues, impacting export expansion plans.

    • Analyst concern regarding the sustainability of higher PAT margins (7%) in FY26, with management guiding to a sustainable core PAT margin of 4% for FY27.

    • Gold price volatility remains a risk, though management aims to mitigate this through better hedging policies and focusing on core manufacturing margins.

    What Changed3

    vs Q1 FY27

    Guidance items11 → 8 (-3)Risks discussed3 → 4 (+1)Q&A highlights8 → 6 (-2)
    Key financials

    Metrics

    10

    Periods

    2

    Q4

    5
    • Revenue
      ₹658.93 Cr
      YoY+121.6%
    • EBITDA
      ₹67.01 Cr
      YoY+2.2%
    • EBITDA Margin
      10.2%
    • PAT
      ₹51.93 Cr
      YoY+4.7%
    • PAT Margin
      7.9%

    FY26

    5
    • Revenue
      ₹2,018.71 Cr
      YoY+82.5%
    • EBITDA
      ₹199 Cr
      YoY+121.3%
    • EBITDA Margin
      9.9%
    • PAT
      ₹140.15 Cr
      YoY+1.6%
    • PAT Margin
      6.9%

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    Liquidity

    Liquidity disclosed

    IPO proceeds were used to purchase gold due to geopolitical uncertainties, rather than taking gold metal loans.

    Guidance & targets

    8
    CategoryTargetPriority
    Volume
    Volume Growth
    30%-40%
    		High
    Revenue
    Value Growth
    60%-70%
    		High
    Revenue
    Turnover
    INR 3,000 crores to INR 3,500 crores
    		Medium
    Profitability
    PAT Margin
    4%
    		High
    Capacity
    Full Capacity Utilization
    7,900 kilos
    		Medium
    Capacity
    Marol Factory Initial Production
    100 kgs per month
    		High
    Capacity
    Jaipur Factory Start
    September, October
    		High
    Market Share
    Export Revenue Share
    10%-20%
    		Medium

    What to watch in Q1 FY27

    5

    Marol Factory Commissioning & Production Ramp-up

    next quarter
    CurrentAlmost ready, expected to start in a month
    TargetInitial production of 100 kgs/month, progressing towards 4,000 kilos/annum

    Why it matters

    This new facility is a key part of the capacity expansion plan, crucial for meeting future demand and achieving growth targets.

    So see, our new factory is almost ready, which is going to be like in a month or so for Marol factory, and I guess Jaipur factory should be starting by around September, October now. So initially to start with, like I expect this Marol factory initially few months to start with, it's going to be around 100 kgs per month and reaching very soon we'll be reaching till 4,000 kilos.

    Risks & concerns

    4
    RiskSeverity

    Geopolitical instability delaying international expansion

    Geopolitical issues (wars, Iran, Israel, US) have extended the timeline for the Dubai subsidiary's operationalization to June '26. — Management acknowledged

    medium

    Gold price volatility impacting margins

    While high gold prices contributed to FY26 margins, management acknowledges volatility and plans to focus on core manufacturing margins and hedging policies. — Management acknowledged

    medium

    Increased import duty on gold

    Management stated that the 15% import duty (reinstated from 6%) was previously in effect for many years and did not significantly affect consumer demand. — Analyst downplayed

    low

    Backward integration by organized retailers

    Management expressed confidence in long-term partnerships and the company's unique positioning as a trusted, scalable manufacturer for organized jewellers. — Analyst downplayed

    low

    Q&A highlights

    6

    “This margin would be around 4% and all, which we've been maintaining that 4% plus and all. And whatever extra money what we made profit, our company has made profit, was the borrowing from IPO proceeding. We had purchased gold because the geopolitical things were not good. So we didn't go for GML and we purchased all the gold when we received the money. So that is why the company has made a higher profit. So PAT level 4% is sustainable.”

    Clarifies that the high PAT margins in FY26 included one-time inventory gains due to gold price movements, and the sustainable core PAT margin is around 4%.

    asked by Bharat Gianani

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q4 and FY26 Financial Performance

    Shanti Gold International Limited delivered robust financial results for Q4 FY26, with revenue from operations growing by 121.65% YoY to INR 658.93 crores. EBITDA for the quarter surged by 217.26% YoY to INR 67.01 crores, leading to a 306 basis point expansion in EBITDA margins to 10.17%. For the full fiscal year FY26, revenue increased by 82.46% YoY to INR 2,018.71 crores, and PAT grew by 159.05% YoY to INR 140.15 crores, with PAT margins improving by 205 basis points to 6.94%.

    02

    Inventory Valuation Methodology Change

    The company transitioned its inventory valuation methodology from First In, First Out (FIFO) to the Weighted Average Cost (WAC) method, with retrospective effect from April 01, 2024. This change was undertaken to better reflect blended inventory costs in a volatile gold price environment and to align accounting practices with broader industry standards, improving the quality and comparability of reported financial performance.

    03

    Significant Capacity Expansion Underway

    Shanti Gold is strategically expanding its manufacturing capabilities to support future growth. The existing Andheri facility has a capacity of 2,700 kg per annum. A new Marol facility is expected to add 4,000 kg per annum, with initial production of 100 kgs per month, while a Jaipur facility will add 1,200 kg per annum and is expected to commence operations by September-October 2026. These expansions will bring the total installed manufacturing capacity to approximately 7,900 kg per annum.

    04

    Product Portfolio Diversification and Market Trends

    The company is diversifying its product portfolio by entering the machine-made plain gold jewellery segment and introducing new categories like Mangalsutra and Turkish jewellery. This diversification aims to capture new growth opportunities and cater to evolving customer preferences. Management noted a resilient overall demand despite elevated gold prices, particularly in wedding and occasions-led jewellery categories, and is witnessing an increasing outsourcing preference among organized jewellers.

    05

    Outlook on Profitability and Margins

    While FY26 saw higher PAT margins (6.94%) partly due to inventory gains from gold price movements, management guides for a sustainable core PAT margin of around 4% for FY27. This 4% represents the operational business margin, independent of gold price fluctuations. The company maintains a strong ROCE of 38% and a healthy debt-equity ratio of 0.36, with a target to potentially increase debt-equity to 1:1 to fuel future growth.

    06

    International Expansion and Geopolitical Impact

    The company's plan to establish a Dubai subsidiary, crucial for export expansion to regions like the USA, Singapore, Malaysia, and the UK, has been delayed to June 2026 due to ongoing geopolitical tensions. Despite this, Shanti Gold aims to increase its export revenue share from 5% to 10%-20% in FY27. Management is confident that once geopolitical issues subside, the Dubai operations will become fully functional.

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