Priority Jewels expands EBITDA margin as leverage declines

Priority Jewels increased its earnings before interest, tax, depreciation and amortisation (EBITDA) margin to 6.2% in FY26 from 4.7% in FY24, while revenue from operations rose to Rs 538.9 crore from Rs 410.5 crore. Over the same period, debt-to-equity declined to 0.74x from 1.32x, alongside higher reported returns and profit after tax.

How much did Priority Jewels’ EBITDA margin increase?

Priority Jewels’ EBITDA margin increased by 1.5 percentage points over two years, reaching 6.2% in FY26 from 4.7% in FY24. The intervening FY25 margin was 5.6%, showing that the expansion occurred in both reported year-on-year comparisons. The presentation describes this trend as consistent margin expansion driven by operational stability.

The margin movement was accompanied by faster growth in EBITDA than in revenue. Revenue from operations increased from Rs 410.5 crore in FY24 to Rs 435.5 crore in FY25 and Rs 538.9 crore in FY26. EBITDA rose from Rs 19.3 crore to Rs 24.3 crore and then Rs 33.6 crore across those three fiscal years, based on figures presented in millions and converted to crore.

Did profit grow faster than Priority Jewels’ revenue?

Yes, Priority Jewels reported compound annual growth rates of 31.8% for EBITDA and 57.1% for profit after tax (PAT), compared with 14.6% for revenue from operations over FY24 to FY26. Its FY26 revenue was Rs 128.4 crore above FY24, whereas EBITDA was Rs 14.3 crore higher and PAT was Rs 10.5 crore higher.

PAT margin rose to 3.3% in FY26, compared with 2.4% in FY25 and 1.7% in FY24. PAT itself increased from Rs 7.1 crore in FY24 to Rs 10.5 crore in FY25 and Rs 17.6 crore in FY26. The 1.6-percentage-point expansion in PAT margin over the two-year period was larger than the 1.5-percentage-point improvement in EBITDA margin.

The reported sequence indicates that FY26 supplied the largest annual revenue addition of the period. Revenue rose by Rs 103.4 crore from FY25 to FY26, compared with a Rs 25 crore increase from FY24 to FY25. EBITDA increased by Rs 9.3 crore in FY26 after rising by Rs 5 crore in FY25, while PAT increased by Rs 7.1 crore after a Rs 3.4 crore gain in the prior year.

How did Priority Jewels’ return ratios change?

Priority Jewels reported higher return on equity (ROE) and return on capital employed (ROCE) in each fiscal year. ROE rose from 7% in FY24 to 11% in FY25 and 14% in FY26, while ROCE moved from 17.5% to 22.4% and then 25.4% over the same three-year period.

The FY26 figures put ROE 7 percentage points above FY24 and ROCE 7.9 percentage points above FY24. These changes coincided with PAT increasing to Rs 17.6 crore in FY26 from Rs 7.1 crore in FY24, and with net worth increasing to Rs 138.6 crore from Rs 94.8 crore.

Priority Jewels also reported adjusted net asset value (NAV) of Rs 103.30 in FY26, up from Rs 83.24 in FY25 and Rs 75.22 in FY24. Adjusted earnings per share (EPS) followed the same direction, increasing from Rs 5.67 in FY24 to Rs 8.34 in FY25 and Rs 14.03 in FY26. The presentation labels the NAV trend as an increase in intrinsic value.

How much did Priority Jewels reduce leverage in FY26?

Priority Jewels reduced its debt-to-equity ratio to 0.74x in FY26 from 1.39x in FY25 and 1.32x in FY24. The FY26 ratio was 0.65x lower than the preceding year and 0.58x lower than FY24, reversing the modest increase recorded in FY25.

The lower ratio came with reductions in both total borrowings and net debt in FY26. Total borrowings declined to Rs 102.6 crore from Rs 145.9 crore in FY25, while net debt fell to Rs 96.1 crore from Rs 118.7 crore. FY24 total borrowings were Rs 125 crore and net debt was Rs 109.8 crore.

Net worth rose by Rs 33.7 crore in FY26 to Rs 138.6 crore, from Rs 104.9 crore in FY25. Thus, the lower debt-to-equity ratio reflected both reduced borrowings and a larger reported equity base. The presentation groups these measures under stability in leverage and solvency ratios.

What operating measures does Priority Jewels report for future growth?

Priority Jewels reports expanding design output and pieces sold while planning manufacturing and portfolio initiatives. New designs increased from 5,231 in FY24 to 6,401 in FY25 and 8,356 in FY26. Total pieces sold increased from 1,72,108 to 1,90,082 and then 2,03,860 over the same fiscal years.

Earrings represented 42.30% of the FY26 product mix and rings accounted for 31.35%, together comprising 73.65%. Pendants and mangalsutras made up 8.58%, bracelets 7.13%, neckwear 5.25% and other products 5.39%. The company says its 39-member in-house design team uses consumer insights and sales feedback, with a focus on lightweight, affordable daily-wear jewellery.

For growth, Priority Jewels says it is adding technology upgrades and floors at its MIDC manufacturing facility, for which it has received the CC. It also plans to broaden its portfolio across 9, 14, 18 and 22 karat gold jewellery, leverage business-to-business customer relationships in lab-grown diamond jewellery, and use joint ventures to support entry into Tier 2 and Tier 3 cities. India represented 50.87% of FY26 sales, followed by the UAE at 18.41%.

Conclusion

Priority Jewels’ FY24-to-FY26 record shows revenue growth alongside faster increases in EBITDA and PAT, producing higher reported margins and return ratios. The FY26 EBITDA margin of 6.2%, PAT margin of 3.3%, ROE of 14% and ROCE of 25.4% were all above FY24 levels, while the debt-to-equity ratio fell to 0.74x.

The next reported outcomes to watch are the execution of manufacturing upgrades, additional facility floors and portfolio expansion across gold purities and lab-grown diamonds. Management’s collaboration strategy, including intended deeper access to Tier 2 and Tier 3 cities, remains a disclosed plan rather than a reported financial result.