P N Gadgil Jewellers Limited (PNGJL) reported a robust performance for the first quarter of Fiscal Year 2027 (Q1 FY27), with total revenue growing by 41% year-on-year (YoY). The company's Retail segment was the primary growth driver, expanding by 56% YoY. This growth was substantially organic, fueled by a 46% YoY increase in same-store sales growth (SSSG), indicating deeper customer engagement at existing stores. The Retail segment now contributes approximately 78% of the total revenue, a significant increase from the previous year. The Franchise and E-commerce businesses also saw growth, increasing by 8% and 20% YoY, respectively. The share of gold bullion sales in retail revenue has normalized to around 22%, down from a higher proportion in the prior quarter. This reduction in lower-margin bullion business, coupled with the increasing contribution of retail and studded jewelry, is improving the overall quality of PNGJL's revenue. The company experienced strong growth across all product categories. Diamond jewelry sales reflect a growing consumer preference for studded jewelry, leading to an improvement in the studded jewelry mix, with the retail stud ratio rising to 10.9%. Notably, newly launched stores in Northern and Central India, although currently contributing 3.4% of retail sales, are showing a higher stud ratio compared to established stores in Maharashtra and Goa, validating the expansion strategy into geographies with a stronger preference for studded jewelry. Operationally, PNGJL focused on enhancing the performance of its existing store network, identifying sites, and onboarding franchise partners for upcoming launches. As of June 30, 2026, the company operated 78 stores (77 in India and 1 in the U.S.A.). The store rollout for the year is planned to commence from the subsequent quarters. PNGJL's financial performance for Q1 FY27 is in line with its previously stated Gross Margin and EBITDA Margin guidance for FY27. The company remains on track to open approximately 25 new stores during the fiscal year, aiming for a total store count of around 103 by the end of FY27. The expansion will be phased across the remaining three quarters, with an accelerating launch calendar and a franchise-led approach for both Legacy and LiteStyle formats, deepening presence in Maharashtra and expanding into Uttar Pradesh, Bihar, Central India, and the NCR region. This update provides a summary of the financial performance for the quarter ended June 30, 2026, and is subject to a limited review by the Statutory Auditors. A detailed information update will follow upon Board approval.
