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Capacity expansion and entry into bridal jewellery segment position SHRINGAR for accelerated growth:

SHRINGAR, driven by elevated gold prices and healthy volume growth of ~15%, reported a strong Q4FY26 performance, marginally ahead of our estimate. In this quarter, SHRINGAR expanded its manufacturing capacity, from 2,500 kg per annum to 4,000 kg per annum, and forayed into the high-margin, high-growth bridal jewellery segment. Initial traction has been encouraging, with supplies commencing to Tanishq and Malabar. EBITDA margin witnessed pressure due to notional MCX hedging losses and start-up cost related to the new manufacturing facility. For FY27E, SHRINGAR has guided for ~30% revenue growth (15% volume growth) led by bridal jewellery scale-up and capacity ramp-up. Additionally, the management indicated that if gold prices remain stable at around INR 150,000, revenue growth could potentially exceed the guided levels of ~30%

Entry into bridal jewellery market offers strong diversification and growth opportunity:

Bridal jewellery is a high-value category, accounting for nearly 23–25% of overall wedding spends. Leveraging its strong relationships with leading jewellery retailers, such as Tanishq and Malabar, along with its proven design capabilities and integrated manufacturing infrastructure, SHRINGAR is well-positioned to scale up its presence in this segment. It expects bridal jewellery to contribute ~30% of the overall revenue in FY27, with the share targeted to increase further to ~50% in the next 2–3 years.

Valuation: We value SHRINGAR using the DCF approach, having a target price of INR 315, with a 47.9% upside and a BUY rating. This equates to an implied PE of 13.2x on FY28 EPS and a PEG ratio of 0.30

Q4FY26 result: Maintains growth momentum

* Volume was up 15.5% YoY and down 9.3% QoQ to 500 Kgs

* Revenue was up 106.5% YoY and up 10% QoQ to INR 7,256 Mn (vs CIE estimate of INR 7,157 Mn)

* EBITDA was up 93.7% YoY and up 11.2% QoQ to INR 447 Mn (vs CIE estimate of INR 434 Mn). EBITDA margin was down 41 bps YoY and up 6 bps QoQ to 6.2% (vs CIE estimate of 6.3%). Impacted by notional MCX hedging losses and higher opex pertaining to new 4,000 Kg per annum facility

* PAT was up 123.5% YoY and up 12.8% QoQ to INR 340 Mn (vs CIE estimate of INR 327 Mn)

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