Buy PN Gadgil Ltd for the Target Rs. 825 by Motilal Oswal Financial Services Ltd
Festive season boosts retail demand
PN Gadgil (PNG) released its pre-quarterly update for 2QFY26. Here are the key takeaways:
Revenue
* Total revenue (excluding refinery sales) grew 31% YoY to INR21.7b in 2QFY26 (est: INR21.5b, INR20b in 2QFY25).
* Retail segment (72% of revenue) grew 29% YoY, driven by healthy storelevel performance and strong festive season sales.
* SSSG stood at 29% QoQ. The gold category registered a 24% increase in value and a 15% increase in volume. The silver category delivered a strong performance, with 92% growth in value and 59% growth in volume.
* Diamond sales also improved, with 31% QoQ growth in volume, resulting in the stud ratio reaching 9%.
* E-commerce revenue grew 113% YoY, now contributing 6.6% to total revenue.
* Franchisee operations saw 105% YoY growth, contributing 15.6% to total revenue.
* Other segments (B2B & corporate sales) contributed ~6% to total revenue.
* Refinery sales (INR3,435m in 2QFY25) were discontinued from Oct’24.
* During Navratri and Dussehra, PNG delivered 65% YoY growth in sales to INR6,180m.
Stores
* Similar to last year’s Navratri campaign, ‘Nine Days, Nine Stores,’ the company further expanded its presence during this year’s Navratri, opening six Exclusive PNG Jewellers showrooms and four LiteStyle shop-in-shop stores.
* During 2QFY26, the company entered into Indore in Madhya Pradesh and Kanpur and Lucknow in Uttar Pradesh, along with the launch of a flagship store in Dadar, Mumbai.
* During the quarter, the company launched eight exclusive showrooms — five company-owned outlets (COCO) and three franchise outlets (FOCO), taking the total store count to 63 as of Sep’25.
* PNG plans to open 13-15 new stores in 2HFY26 (COCO + FOCO) as it targets 76-78 stores for FY26.
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