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Key Conference Call Highlights

Industry:

* The management maintained its stance on the structural shift in the industry as, now, consumers increasingly prefer branded and organised jewellery retail over unorganised players. This trend is driving a preference for outsourcing among organised retailers who are focusing on expanding their footprint and optimising inventory. Shanti Gold expects to benefit from this shift as a trusted, scalable manufacturing partner

* According to SHANTIGOLD, the recent increase in gold import duty, from 6% to 15%, is unlikely to affect demand materially, given the historical resilience of jewellery consumption in India even during earlier periods (2022 to 2024) of sustained 15% duty

* A favourable demand, driven by weddings, rising disposable income and shift towards organised jewellery players, provides sustainable long-term growth opportunities. Moreover, increasing preference for branded and hallmarked jewellery supports organised manufacturers

Guidance:

* SHANTGOLD has guided for 30–40% volume growth and 60–70% value growth, targeting revenue of INR 34–35 Bn in FY27E. FY26 PAT margin stood at 7%, aided by inventory gains from gold purchased using IPO proceeds (FY26 average purchase price at INR 126,000/10gm) before the sharp rise. However, SHANTIGOLD expects FY27E PAT margin to normalise at 4–5% due to the fading low-cost inventory benefit and higher contribution from lower-margin lightweight jewellery

Export Push

* The launch of the Dubai office was delayed due to the ongoing Gulf conflict; however, most regulatory approvals are already in place. Once operational, the facility will cater to key export markets including the US, Singapore, the UK and Malaysia. SHANTIGOLD is aggressively scaling up its export business and targets increasing export contribution, from the current ~4% (FY26) to 10–20% in the medium term

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