Lalithaa Jewellery Q2 FY27 (consol): PAT +4.5% YoY to ₹253 Cr, revenue cools to +7.5%

Lalithaa Jewellery Mart's consolidated revenue rose 7.5% YoY to ₹7,023 Cr (₹6,530 Cr in Q2 FY26) and consolidated PAT rose 4.5% YoY to ₹253.0 Cr (₹242.1 Cr in Q2 FY26) for the quarter ended September 30, 2026. The YoY print marks a return to profit growth after Q1 FY27, when consolidated PAT had fallen 22% YoY to ₹208 Cr on a margin squeeze even as revenue grew a far faster 26% YoY to ₹6,035 Cr — this quarter's 7.5% topline growth is a sharp deceleration from that pace. Sequentially revenue was up 16.4% QoQ and PAT up 21.5% QoQ, but Q2 (Jul–Sep) covers the run-up to the South Indian festive season for a retailer whose stores are entirely across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and Puducherry, so the QoQ jump reads as seasonal rather than a step-change in demand. Gross profit margin was 9.29% of sales, down from 9.39% a year ago — a reversal of the roughly 20bps YoY gross-margin improvement management had posted in Q1 FY27 — despite Q2 being the first full quarter of the making-charge revisions implemented in Q4 FY26 and end-Q1 FY27. EBITDA margin did expand, to 6.33% from 6.25% a year ago, as gross profit grew 6.36% YoY versus a bigger 9.72% rise in EBITDA on operating leverage. But standalone finance costs jumped ~34% YoY (₹68.1 Cr vs ₹50.7 Cr) and depreciation rose 7.7% YoY (₹32.6 Cr vs ₹30.3 Cr), likely tied to higher working-capital borrowings and store-related leases, which ate into the EBITDA gain and left PBT growth at 6% and PAT growth at 4.5% — both trailing EBITDA growth. Net profit margin slipped to 3.61% from 3.71% a year ago even as EBITDA margin expanded, a mixed, broadly flat margin picture rather than a clean recovery. A pre-result preview (compoundingai.in) flagged margin recovery from Q1 FY27's 6.2% EBITDA margin as the quarter's key test, and whether any pickup would reflect durable gains or one-off inventory effects. The actual 6.33% is only a modest ~13bps uptick, not a sharp rebound, and sits alongside the gross-margin reversal noted above — an inline outcome against that bar rather than a clear beat. Management gives no formal forward guidance or outlook on record; none accompanied this filing beyond boilerplate describing a ₹25,000 Cr turnover retailer across 66 stores in five southern states. The company added just one net store this quarter (65 to 66, the Mayiladuthurai outlet opened September 15, 2026) against an IPO-funded plan for 10 new stores, with ₹598 Cr of the ₹1,033 Cr earmarked capex utilised (58%) as of September 30, 2026. The same board meeting also approved a draft Scheme of Amalgamation merging two wholly-owned subsidiaries, Asita Jewellery Manufacturing and Centigrade Apparels, into the company effective April 1, 2026, pending NCLT approval — a structural simplification with no cash consideration or shareholding change and no P&L impact this quarter. EPS was ₹4.80 basic/diluted, up from ₹4.17 in Q1 FY27 but down from ₹4.84 a year ago, reflecting the enlarged post-IPO share base (paid-up capital rose from ₹250 Cr to ₹280 Cr after the August 2026 listing) diluting per-share growth even as absolute PAT grew. Heading into Q3 FY27, which carries the Diwali season, the markers to watch are whether gross margin finally closes its YoY gap on the making-charge revisions, whether finance costs moderate as IPO proceeds are deployed, and the pace of the remaining IPO-funded store rollout.