PNG Jewellers Q1 FY27: Strong Start, Tighter Costs, and a Bigger Expansion Pipeline

P N Gadgil Jewellers Limited began FY27 with its strongest ever first quarter, even as gold prices remained elevated. For the quarter ended June 30, 2026 (Q1 FY27), consolidated revenue from operations rose to INR 2,412.98 crore, up 40.7% year on year. Profitability improved faster than sales. EBITDA increased to INR 192.41 crore, up 56.6%, and profit after tax climbed to INR 105.33 crore, up 51.9%.

Margins expanded as well. EBITDA margin improved to 8.0% from 7.2% last year, and PAT margin rose to 4.4% from 4.0%. Management attributed the quarter’s performance to healthy wedding demand, a strong Akshaya Tritiya season, continued traction in lightweight jewellery, and higher old gold exchange trends, all of which tend to favour trusted organised retailers with transparent pricing.

A retail-led quarter, with franchise and e-commerce growing slower

The company’s segmental mix in Q1 FY27 shows retail continuing to drive the business. Retail revenue grew sharply, while franchise and e-commerce grew at a slower pace.

Retail revenue increased to INR 1,885.10 crore, up 56.4% year on year. The company reported same store sales growth of 46.1% for the quarter, indicating that growth was not only from network additions.

Franchise revenue rose to INR 290.64 crore, up 7.9%. Management explained on the call that franchise sales are recorded as B2B dispatches to franchise stores and can vary quarter to quarter based on stocking and replenishment timing.

E-commerce revenue increased to INR 79.35 crore, up 20.0%. Management stated it took a conscious decision to reduce bars and coin sales on e-commerce and focus more on jewellery, expecting better margins even if topline growth slows.

The company also reported INR 157.90 crore under other revenue, which declined year on year.

Financial summary (Consolidated)

Store network scale and the push toward a broader footprint

The company ended June 2026 with 78 stores, comprising 57 COCO stores and 21 FOCO stores, as per the investor presentation. It also highlighted that it added 39 stores post IPO and that all IPO commitments have been fulfilled.

Management’s near-term plan is clear. The company reiterated it remains committed to opening around 25 stores during FY27, taking the network to approximately 103 stores by year end. A few launches are planned in Q2, while the bulk of expansion is planned in Q3 and Q4 through a franchise-led approach across both legacy and LiteStyle formats. Management also indicated expansion focus areas include deeper penetration in Maharashtra while expanding reach in Uttar Pradesh, Bihar, Central India, and NCR.

The longer-term store pipeline discussed on the call is also ambitious. Management stated a plan to reach around 177 stores by March 2029, with about 113 legacy stores and around 64 LiteStyle stores.

Legacy and LiteStyle: two formats, two economics

The investor presentation positions PNG Jewellers (legacy) and LiteStyle by PNG as complementary formats.

Legacy stores are positioned around bridal and traditional wear, including 22kt jewellery, and contributed INR 2,162.85 crore in Q1 FY27. The presentation also shows legacy operating metrics for the quarter, including an annualised stock turnover ratio of 3.8x and a stud ratio of 10.7%.

LiteStyle by PNG is positioned as lightweight, daily wear jewellery across 14kt, 18kt and 22kt gold. The presentation shows LiteStyle revenue contribution of INR 11.77 crore in Q1 FY27, a stud ratio of 32.9%, and an annualised stock turnover ratio of 0.8x.

On the call, management acknowledged that LiteStyle started with a higher gold mix and lower studded mix, and is now being rebalanced. They stated an intention to move toward 80% studded inventory and 20% gold inventory at a store level. They said this shift could enable a 50% to 60% studded ratio in LiteStyle over time and improve margins, noting that current LiteStyle gross margin is around 18% to 20%.

Margin commentary: strong EBITDA, but flat gross margin optics

A key investor question during the call was why consolidated gross margin was flat year on year despite a higher retail share. Management said that hedging gains and their presentation can affect the gross margin optics, and that adjusted margins net of hedging gains show improvement.

Management also indicated that newer markets such as UP and Central India still form a small part of the retail mix, and therefore the margin benefit from those markets may not yet meaningfully lift overall gross margins.

At an operating cost level, management highlighted tighter control in Q1. It said marketing spends were cut significantly, including a reduction in hoardings, and that the company aims to keep marketing cost within 1.5%. Management stated that other expenses were lower in Q1 due to conservative spending and limited store launches in the quarter.

For the full year, management guided EBITDA margin at around 7% and stated other expenses for the year are expected to be around INR 400 crore.

Risk management, hedging, and capital structure discussion

Management discussed its hedging posture and shared a clear path to increase coverage. It said hedging had reduced earlier, then moved back to 70% plus, and that reaching around 80% should be achievable by Q3, with an intent to be fully hedged in the next financial year.

The quarter also reflected a rise in finance costs, with consolidated finance cost increasing to INR 34.06 crore from INR 18.92 crore in Q1 FY26.

Separately, management addressed promoter shareholding. It acknowledged promoter holding is above 75% and said the company has an enabling board resolution and will consider a QIP at a suitable time to reduce holding to the required level.

Takeaways

PNG Jewellers delivered a strong Q1 FY27 on both growth and operating leverage, supported by retail momentum and tight cost control. The company is now shifting attention to execution of a large expansion pipeline, largely franchise-led, alongside a multi-format strategy where LiteStyle is being repositioned toward higher studded mix.

The next few quarters will be important for two reasons. First, because the bulk of store additions are planned in Q3 and Q4, and second, because management has set clear targets on hedging coverage and profitability. If the company sustains retail SSSG while scaling new regions and improving LiteStyle economics, FY27 could mark a meaningful step in its transition from a strong Maharashtra franchise to a broader national footprint.