IGI Logo

Overall beat on profitability Revenue

• PNGJ’s consolidated sales rose 3% YoY to INR17.1b (est. INR17.4b) in 1QFY26.
• The company stopped HO Bullion accounting from 3QFY25; hence, the reported numbers are not comparable and are lower than the underlying numbers.
• Total revenue (ex-bullion) grew 30% YoY. ? The retail segment (70% of revenue) grew 19% YoY to INR12.1b, reflecting stable store-level operations.
• SSSG stood at 8% for 1QFY26. Growth was impacted by the absence of the Gudi Padwa festival in the quarter. In FY25, Gudi Padwa was part of Q1, aiding performance. In FY26, the festival was preponed to 4QFY25, affecting LFL growth. Gudi Padwa sales were ~INR1,235m this year (booked in 4Q).
• E-commerce revenue jumped 126% YoY to INR661m, contributing 4% to total revenue.
• Franchisee operations saw 109% YoY growth to INR2.7b, contributing 16% to total revenue.
• Stud Ratio Studded jewelry sales grew 41.6% YoY, increasing the stud ratio to 10% of retail sales.
• The company delivered 35% YoY growth on the day of Akshaya Tritiya and record INR1,395m sales.
• The transaction count grew by 23% and the ATV at INR93k.
• The company recorded a 25% increase in footfalls, coupled with a strong 92% conversion rate.
• The company opened two Litestyle stores during the quarter, taking the store count to 55 stores (42 COCO, 13 FOCO).

Profitability

• Gross margin expanded 490bp YoY to 13.2% (est. 10%)
• EBITDA margin expanded 260bp YoY to 6.4% (est. 4.4%)
• Employee expenses were up 58% YoY, and other expenses rose 55% YoY.
• EBITDA grew 71% YoY to INR1,100m. ? PAT jumped 96% YoY to INR693m. PAT margin came in at 4.0% vs. 2.1% in 1QFY25.

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412