61% YoY growth, 9.6% margin, but fraud charge clouds narrative

Delivered result: revenue 2390.7 Cr, YoY +61.0%

Delivered result: PAT 129.4 Cr, YoY +93.1%. Operational PAT (excl. fraud) INR135 Cr, +101% YoY

Delivered result: OPM 7.6%, consistent with 189.8 EBITDA/2391 revenue

Delivered result: growth trajectory on pace. Q2 delivery validates execution

From INR35 Cr (FY23) to INR435 Cr (Q2 FY27). Growth rate and scale corroborate

Disclosed in call; PAT adjusted for fraud charge; operational performance unaffected

H1 FY27: INR4,403 Cr + Q2 annualized INR4,782 Cr ≈ INR9,185 Cr, exceeds guidance

Now 16% of Q2 (vs 15% target), targeting 30% by FY30. Ahead of plan. Provides structured margin uplift path.

Q2 FY27 exports ₹435 Cr (annualized ₹1,740 Cr, 18% of revenue). Prior year ₹35 Cr (FY23). 45 Cr growth in three steps: Indian retailers overseas, diaspora, and trade shows/new geographies (UAE, Saudi, Singapore, Malaysia, Japan).

Studded/lab-grown diamonds now 2.6% of Q2 FY27 revenue, vs single-digit low prior. Margin higher than core gold. Purvi (uncut diamonds, ₹9 Cr acq.) and Rishabh (mangalsutra, ₹10 Cr acq.) acquisitions contributing.

Gross margin 9.6% (vs 8.5–9% guidance, beat). PAT margin 5.4% (vs 5–5.25% guidance, beat). Management cannot restate FY30 PAT margin target due to SEBI rules; prior call cited ₹1,000 Cr PAT. Current trajectory on pace.

Yes, historical track record (₹398 Cr equity over 8 years → ₹9,000 Cr+ revenue) shows capital disciplined into high-ROIC. Walmart parallel: build ahead of order, sustain returns above cost of capital. Majority of customers on fund raise; stores expected to go up in India.

Strategic: diamond/studded credit (90–120 days market practice = ₹225 Cr), bullion (2-day credit = ₹100 Cr), other materials (vendor scale). Studded/diamond growth + bullion scale inflates payables naturally. Structural shift in product mix, not one-off.

Yes, karatage shifting (22K→18K→14K) reflects customer demand for lower-cost pieces at lower budgets. Younger, price-conscious buyers. Company has 20-year history guiding gross margin 8%; expansion to 9.6% now driven by Advance Gold (110 bps to gross) + studded mix (improves margins). Further gross margin gains redeployed to business (not taken as PAT uplift).

Per SEBI guidelines, we cannot quantify forward guidance. Will revisit once OIP mandate closes; then can come back to street with updated guidance. Implies flexibility to raise targets once regulatory constraint lifted.

Very close to purchase last month; buyer with strong interest; due diligence advanced. Intent not to be related-party transaction; stretched commitment to next 20–30 days. If no finalization, promoters will take the land. Strategic optionality held.

Cannot give forward guidance per SEBI. Wedding season is strong seasonal driver historically. Karat mix is opportunity: younger buyers at lower price points drive volume.

H1 FY27 ₹4,403 Cr + Q2 annualized ₹4,782 Cr ≈ ₹9,185 Cr run-rate. On pace to beat by ~₹1,085 Cr.

CAGR ~40% from H1 FY27 (₹4,403 Cr annualized) to FY30. Driven by Advance Gold scaling, exports 20%, M&A, domestic retail expansion.

Beat by 60–110 bps. Driver: Advance Gold 110 bps uplift + studded/diamond mix. Management expects further gains redeployed to business.

Beat by 15–40 bps. Operational PAT margin 5.6% shows underlying strength. Fraud charge (₹10.70 Cr / ₹2,391 Cr = 0.45% of revenue) is one-off.

Land monetization in progress; store count expected to rise. Management targets high ROIC (Walmart analogy) rather than absolute capex targets.

Star Mangalsutra subsidiary fraud of ₹7.35 Cr (disclosed July 2026). ₹3.35 Cr recovered; balance provisioned in Q2. Raises questions on internal controls and subsidiary oversight.

Payables surged from ₹292 Cr (March '26) to ₹437 Cr (Sept '26, +50%). Driven by diamond credit (₹225 Cr at 90–120 days) and bullion (₹100 Cr at 2 days). If studded/diamond volume slows or suppliers tighten credit, working capital cycle could reverse.

Customers include Kalyan, Senco, PN Gadgil, and other large listed/unlisted retailers. Growth is driven by retail consolidation (organized sector eating into unorganized). Retailer base is finite and consolidating; loss of a top customer could be material.

Gold prices highly volatile (noted 80% swing in recent cycles). Karatage mix shift (22K→18K→14K) is demand-driven but signals price sensitivity. Margins are hedged by back-to-back, but long-term consumer demand for lower-karat (lower-cost) pieces could cap blended ASP.

Exports now 18% of business (₹1,740 Cr annualized). Concentrated in GCC (UAE, Saudi), SE Asia (Singapore, Malaysia), and nascent in Japan/UK. Trade disputes, visa restrictions, or regulatory changes in these regions could disrupt 18% of revenue.