Manoj Vaibhav Q2 profit reaches Rs 35.70 crore on reversal

Manoj Vaibhav Gems 'N' Jewellers Limited reported Rs 35.70 crore profit for the second quarter of financial year 2026-27 (Q2 FY27) ended September 30, 2026, versus Rs 31.73 crore a year earlier, after reversing Rs 8.83 crore of a provision for uncovered metal-based jewellery purchase-plan obligations. Revenue from operations rose to Rs 790.69 crore from Rs 755.82 crore.

What drove Manoj Vaibhav's Q2 FY27 profit?

Manoj Vaibhav's reported Q2 FY27 profit was Rs 35.70 crore, up Rs 3.97 crore from Rs 31.73 crore in the quarter ended September 30, 2025, and up Rs 8.13 crore from Rs 27.57 crore in the quarter ended June 30, 2026. The September-quarter result included an exceptional provision reversal, while profit before exceptional items and tax was Rs 39.19 crore, compared with Rs 45.16 crore a year earlier and Rs 32.99 crore in the preceding quarter.

The exceptional item was recorded as negative Rs 8.83 crore in the income statement, lifting profit before tax to Rs 48.02 crore in Q2 FY27. There was no exceptional item in the quarter ended September 30, 2025. After tax expense of Rs 12.32 crore, Manoj Vaibhav reported basic earnings per share of Rs 7.31, compared with Rs 6.50 in the September 2025 quarter; quarterly earnings per share are not annualised.

What was the Rs 8.83 crore provision reversal?

The Rs 8.83 crore Q2 FY27 reversal related to a provision Manoj Vaibhav recognised during financial year 2025-26 for potential losses on the uncovered portion of its metal-based jewellery purchase-plan obligations. The provision initially stood at Rs 15.13 crore, according to the notes accompanying the results for the quarter ended September 30, 2026.

Manoj Vaibhav said it reassessed gold-equivalent obligations and available inventory coverage for matured plans during the six months ended September 30, 2026. The reassessment resulted in a total reversal of Rs 12.61 crore in the half year, comprising Rs 3.78 crore in the June 2026 quarter and Rs 8.83 crore in the September 2026 quarter. The company continued to carry the remaining Rs 2.52 crore provision until the relevant plans mature.

The reported Q2 result therefore included an exceptional item in addition to profit before exceptional items and tax. The difference is shown by profit before tax of Rs 48.02 crore including the reversal and Rs 39.19 crore before exceptional items and tax. Manoj Vaibhav specifically disclosed the provision reversal as an exceptional item.

How did Manoj Vaibhav's revenue and expenses change in Q2?

Manoj Vaibhav's revenue from operations reached Rs 790.69 crore in Q2 FY27, increasing Rs 34.87 crore from Rs 755.82 crore in the September 2025 quarter and Rs 76.78 crore from Rs 713.91 crore in the June 2026 quarter. Total income, including other income, was Rs 792.46 crore, compared with Rs 757.56 crore a year earlier and Rs 715.40 crore sequentially.

Total expenses were Rs 753.27 crore in Q2 FY27, against Rs 712.40 crore in the September 2025 quarter and Rs 682.41 crore in the June 2026 quarter. Cost of raw material consumed was Rs 581.11 crore, up from Rs 478.43 crore a year earlier, while purchase of stock-in-trade was Rs 192.66 crore compared with Rs 13.23 crore in the September 2025 quarter. Changes in inventories were negative Rs 78.57 crore, versus negative Rs 40.82 crore a year earlier.

Other expenses were Rs 87.20 crore in Q2 FY27, compared with Rs 31.30 crore in the September 2025 quarter and Rs 25.34 crore in the June 2026 quarter. Finance costs were Rs 15.10 crore, higher than Rs 9.39 crore in the prior-year quarter, while employee benefits expense was Rs 15.34 crore, compared with Rs 14.42 crore. These movements coincided with lower profit before exceptional items and tax year on year despite higher revenue.

What did Manoj Vaibhav report for the first half of FY27?

Manoj Vaibhav reported Rs 63.27 crore profit for the six months ended September 30, 2026, compared with Rs 52.32 crore in the corresponding six months of financial year 2025-26. Total income rose to Rs 1,507.86 crore from Rs 1,308.02 crore, while revenue from operations increased to Rs 1,504.60 crore from Rs 1,304.76 crore.

Profit before exceptional items and tax for the first half was Rs 72.18 crore, slightly below Rs 72.80 crore in the year-earlier half. The Rs 12.61 crore provision reversal increased first-half profit before tax to Rs 84.79 crore, compared with Rs 72.80 crore in the prior-year period, when no exceptional item was reported. First-half basic earnings per share were Rs 12.95, versus Rs 10.71 a year earlier.

Manoj Vaibhav operates in jewellery retail and said its activities fall within a single business segment under Indian Accounting Standard 108, Operating Segments. It therefore did not disclose separate retail-product or geographic segment results for the quarter and six months ended September 30, 2026.

When were Manoj Vaibhav's Q2 results approved?

Manoj Vaibhav's Audit Committee reviewed, and its board approved, the unaudited Q2 FY27 and first-half FY27 results on November 13, 2026. The results were prepared under Indian Accounting Standard 34, Interim Financial Reporting, and the statutory auditors issued a limited review report.

Manoj Vaibhav also stated that it had no subsidiary, associate or joint venture as of September 30, 2026. The filing consequently presents the company's results, including the Rs 12.61 crore cumulative provision reversal recorded during the first half of financial year 2026-27.

Conclusion

Manoj Vaibhav delivered higher reported quarterly and first-half profit for the periods ended September 30, 2026, supported by revenue growth and the Rs 8.83 crore Q2 reversal of a jewellery-plan provision. Profit before exceptional items and tax was Rs 39.19 crore in Q2 FY27, below Rs 45.16 crore in the September 2025 quarter, separating the operating comparison from the exceptional accounting gain.

The next disclosed matter to watch is the Rs 2.52 crore balance provision, which Manoj Vaibhav said will continue until the relevant jewellery purchase plans mature. Manoj Vaibhav will also need to report how its reassessment of gold-equivalent obligations and available inventory coverage develops after the Rs 12.61 crore first-half reversal.