P N Gadgil Jewellers Reports Strong Q1 FY26 Results with 97% PAT Growth and Aggressive Expansion Plans

* P N Gadgil Jewellers Limited (PNGJL) reported a robust financial performance for Q1 FY26, with consolidated revenue from operations growing 2.8% year-over-year (Y-o-Y) to ₹1,715 crore (₹17,145 million). * Gross profit surged by 63% Y-o-Y, with the gross margin improving significantly from 8.3% to 13.2%. * EBITDA grew by 85.4% to ₹122 crore (₹1,228.5 million), achieving an EBITDA margin of 7.2%, up 320 basis points Y-o-Y. * Profit After Tax (PAT) increased by 97% Y-o-Y to ₹69.3 crore (₹693.4 million), with a PAT margin of 4%, an increase of 190 basis points Y-o-Y. * The retail segment, contributing 70.3% of total sales, saw 19% Y-o-Y revenue growth, an EBITDA margin of 10%, and a PAT margin of 5.7%. * E-commerce revenue surged by 126% Y-o-Y to ₹66.1 crore (₹661 million), while franchise revenue rose by 109% Y-o-Y to ₹269.3 crore (₹2,693 million). * Customer engagement remained strong, with transaction volume up 23%, average transaction value nearing ₹95,000 to ₹1 lakh, footfall increasing by 25%, and a conversion rate of 92%. * The company achieved its highest ever single-day festive sale on Akshaya Tritiya, reaching ₹139.53 crore (₹1,395.3 million), a 35.1% increase over the previous year. * The studded portion of sales increased by 41.6% Y-o-Y, now accounting for 10% of total retail sales. * Revenue per store stood at ₹31.2 crore (₹312 million), and net profit per store reached ₹1.3 crore (₹13 million). * Same Store Sales Growth (SSG) for Q1 FY26 was 8%, influenced by the timing of the Gudi Padwa festival. * CRISIL reaffirmed PNGJL’s long-term rating at CRISIL A with a stable outlook and short-term rating at CRISIL A1 for its total bank loan facility of ₹419 crore. * Mr. Saurabh Gadgil, Chairman and Managing Director, noted the resilience of the Indian consumer despite a 35% Y-o-Y surge in gold prices, with increasing interest in value-conscious choices like lightweight jewellery. * The company's lightweight jewellery brand, 'LiteStyle by PNG', is positioned as a key growth driver, with its own stores achieving gross margins of 25%-26%. * PNGJL launched two new LiteStyle stores in Q1 FY26, increasing the total store count to 55. * For FY26, the company plans to add another 20-23 stores, aiming for a total of approximately 80 stores by the end of the financial year. This includes expansion into Central and North India, starting with Indore, Kanpur, and Lucknow. * The expansion will be a mix of PNG and LiteStyle stores, with about half being franchisee models requiring zero investment from the company. * The management expects the 13% gross margin to be sustainable due to increased studded jewellery sales, procurement of old gold at a 3% discount, and effective diamond procurement at lower costs. * The company reported a notional hedging loss of approximately ₹25 crore in Q1 FY26 due to continuous gold price increases, but confirmed it is 100% hedged month-on-month. * Net debt stood at ₹324 crore, with a total debt of ₹854 crore and fixed deposits of ₹530 crore, resulting in an effective finance cost of 4.90%. * Future expansion will primarily be funded by internal accruals, with potential additional bank limits of ₹100 crore - ₹150 crore if needed. The company has board approval for a QIP but no immediate plans for it. * PNGJL aims to cross 100 stores by March 2028, with a potential target of 150 stores if QIP funding is utilized.