P N Gadgil Jewellers rises on strong Q2 business update

P N Gadgil Jewellers rose 1.43% to Rs 594.35 after the company reported a 22.4% year-on-year increase in revenue in Q2 FY27, despite the shift in the Navratri festive period to the third quarter.

The retail segment recorded 31.1% year-on-year growth, supported by same-store sales growth of 25.5%. The franchise business grew 34.7%, while e-commerce revenue declined 83.6% following a strategic reduction in low-margin gold coin sales and a shift towards higher-margin jewellery products.

Gold coin and bar sales accounted for around 15.8% of retail revenue in Q2 FY27, compared with 23.3% in the year-ago quarter. The company said the changing sales mix, along with a higher contribution from retail and studded jewellery, was improving the quality and profitability of its revenue mix.

Category-wise, gold revenue grew 23.5% year-on-year, while diamond and silver revenue increased 21% and 12%, respectively. The retail stud ratio, which measures the share of studded jewellery in sales, rose to 11.8% from 9% a year earlier. The northern region recorded a stud ratio of 17.4%.

The share of old gold exchange as a percentage of sales increased to 38% in Q2 FY27 from 29% in the corresponding quarter last year. During the Raksha Bandhan period, sales of Rakhi-related jewellery rose 114% in terms of pieces sold and 142% in value terms year-on-year.

During the quarter, the company opened two stores - one Legacy-format store in Gurugram and one YOOU store at Amanora Mall in Pune. Its total store count stood at 80 as of 30 September 2026, comprising 79 stores in India and one in the United States.

P N Gadgil Jewellers plans to open around 23 additional stores during FY27, taking its total network to approximately 103 stores by year-end. The expansion will be primarily franchise-led, covering both Legacy and YOOU formats. The company expects to open its Ayodhya store by mid-October and its Prayagraj store by early November. It has also secured 10 store commitments, comprising six Legacy stores and four YOOU stores.

The company plans to strengthen its operations in Maharashtra while expanding its presence across northern and central India to build a scalable retail network in these markets.

The company has transitioned its LiteStyle brand to YOOU as part of its strategy to target demand for contemporary, lightweight and everyday-wear jewellery.

The Q2 FY27 business update is provisional, with the revenue figures subject to limited review by the statutory auditors and the detailed update to follow after approval by the board of directors.

Established in 1832, P N Gadgil Jewellers is an Indian jewellery retailer offering gold, silver, diamond and platinum jewellery for weddings, festivals and everyday wear. Its portfolio includes YOOU by PNG, a brand focused on stylish and lightweight jewellery. As of 30 September 2026, the company operated 80 stores, including 79 in India and one in the US.

The company?s consolidated net profit jumped 51.9% to Rs 105.33 crore in Q1 FY27 compared with Rs 69.34 crore in Q1 FY26. Revenue from operations rose 40.73% YoY to Rs 2,412.98 crore in Q1 FY27, driven by robust growth across its retail business and healthy demand for gold, diamond and silver jewellery.

Powered by Capital Market - Live News