P N Gadgil Jewellers Shines Bright: Q2 FY26 Performance and Strategic Expansion

P N Gadgil Jewellers Limited, a name deeply rooted in tradition and trust within India's jewellery sector, has delivered a stellar performance in the second quarter of fiscal year 2026. The company reported a robust consolidated revenue from operations of INR 2,177.6 crore, marking an impressive 8.8% year-on-year growth. This strong top-line expansion was complemented by even more significant gains in profitability, with EBITDA soaring by 117.0% to INR 142.9 crore and Profit After Tax (PAT) surging by 127.1% to INR 79.3 crore. These figures underscore the company's operational efficiencies and its ability to thrive amidst dynamic market conditions, including a substantial rise in gold prices. The net profit margin expanded notably to 3.6% in Q2 FY26, up from 1.7% in the corresponding period last year, reflecting an improved product mix and disciplined cost management.

The company's growth in Q2 FY26 was broad-based, with all key segments contributing positively. The retail segment, which remains the largest growth engine, recorded a robust 29% year-on-year growth, accounting for 72.2% of total sales. This was driven by healthy store-level performance and strong festive season sales. E-commerce operations witnessed an exceptional surge of 113.2% year-on-year, contributing 6.6% to total revenue, highlighting the success of its digital expansion and customer engagement initiatives. The franchisee segment also delivered a strong performance, growing by 105% year-on-year and contributing 15.6% to total revenue. The 'Other' segment, primarily comprising B2B sales, accounted for 5.6% of total revenue. It is important to note that the refinery business, which contributed INR 343.5 crore in Q2 FY25, was discontinued effective October 1, 2024, to streamline operations and focus on core jewellery retail.

The festive season proved to be a significant catalyst for the company's performance. Following a positive response to last year's Navratri campaign, P N Gadgil Jewellers expanded its presence during this year's Navratri by opening 6 exclusive PNG Jewellers showrooms and 4 LiteStyle shop-in-shop stores. Dhanteras contributed INR 277 crore, marking the company's highest-ever single-day festive sales with a 105% growth compared to the previous year. Overall Diwali festive season sales reached INR 606 crore, a robust 74% growth. The gold category registered a 24% increase in value and a 15% increase in volume, while the silver category saw a remarkable 92% growth in value and 59% in volume. Diamond sales also improved significantly, with a 31% rise in volume, leading to the stud ratio reaching 9%. This indicates a strong consumer preference for design-led aspirational products, a trend the company is actively capitalizing on.

Strategic Expansion and Innovation

P N Gadgil Jewellers is aggressively pursuing a pan-India expansion strategy, aiming to become a leading national brand. The company successfully entered new markets in Madhya Pradesh (Indore) and Uttar Pradesh (Kanpur and Lucknow) during the quarter, alongside launching a flagship store in Dadar, Mumbai. The total store count now stands at 63, with plans to open 13-15 new stores in the second half of FY26, bringing the network to 76-78 stores by March 2026. The long-term vision is to reach 150 stores by March 2028, a mix of company-owned and franchisee-operated outlets. This strategic expansion is supported by extensive market research and a focus on building a robust management team to ensure efficient operations across new geographies.

An innovative aspect of its strategy is the expansion of the LiteStyle segment, a sub-brand launched in June 2025. This segment targets young, modern professionals (25-35 years) with lightweight gold and diamond jewellery. Management reported promising traction, with one of the three LiteStyle stores already breaking even and the others on track. These stores are designed for inventory-light operations, aiming for faster stock turns and higher gross margins of 20-25%. The company also continues to strengthen its digital footprint, leveraging its website and major online marketplaces to enhance customer engagement and drive e-commerce growth.

Financial Discipline and Outlook

The company's financial discipline is evident in its prudent capital management, as reaffirmed by CRISIL's A positive long-term rating and A1 short-term rating. Management highlighted its 100% effective hedging policy for gold inventory on a month-on-month basis, effectively mitigating risks associated with gold price volatility. The discontinuation of the refinery business is a strategic move to sharpen focus on core jewellery retail, which is expected to further improve margins in the coming quarters. Looking ahead, the company anticipates Q3 FY26 revenue to be between INR 3,000 crore and INR 4,000 crore, with significant margin improvement. The stud ratio is targeted to reach 12-13% in the next two years, reflecting a continued shift towards higher-value products.

Conclusion

P N Gadgil Jewellers Limited's Q2 FY26 performance demonstrates strategic clarity and disciplined execution. The company's ability to deliver robust growth in revenue and profitability, coupled with its aggressive yet well-planned expansion into new markets and innovative product segments like LiteStyle, positions it strongly for sustained growth. With a clear focus on customer preferences, operational efficiency, and proactive risk management, P N Gadgil Jewellers continues to build on its legacy of trust, ensuring a sparkling future for its stakeholders.