P N Gadgil Jewellers · tone and specificity signals across the available quarters.
Language signals
The Indian consumer has been resilient and continues to stand strong despite the high gold prices both in terms of footfalls and transactions. Both have shown a good increase which tells us that today's customers are very much interested in looking at gold. They are just simply being more value conscious in their choices.
We are hopeful that we will keep the same margin going forward. If you see last quarter also we are in the same 12.5 to 12.8%. This year slightly on the higher side because my studied portion and the product mix is increased. With respect to the inventory gain there is no question of inventory gain lies in the gross margin because as we mentioned that we are doing the effective hedging since Q3 of last year.
Hedging is actually it's a need of the hour because the price of gold are fluctuating and we do not want to take the price risk on the books. GML has a cost because there's a cost to avail the GML facility but it also has an upside because it protects us from the price fluctuation.
We have seen positive volume growth at the company level. Consumer interest in jewelry remained strong and now with the upcoming wedding season in the month of December-January, the road looks pretty positive. Rising prices had no impact on consumer demand—both investment demand and jewelry demand have been strong.
In terms of old gold exchange, 50-60% of entire jewelry purchases very shockingly is happening through old gold, so that is ensuring that volumes are also intact and margins from making charges are on the positive side.
Marketing will be kept at 1.2% of the total top line. There will not be any huge incremental hike in marketing for the entire year. The company aims to reach 12-13% stud ratio in the next two years.
We are 100% hedged on gold price movement. Margins are not dependent on gold price movement; our income primarily is from making charges. So as long as we are able to generate that making charge income, margins would not be affected.
The growth is coming both from the new stores and from the existing stores. E-com as a function is doing well. We are also able to garner a lot of share from the unorganized sector which is also adding to the growth.
Lifestyle is a bridge between PNG customers and customers of tomorrow. It is very design-oriented, high fashion, high glamour jewelry but light on the pocket. Designs in lifestyle are completely different than PNG; you will not find PNG products in lifestyle and vice versa.
FY26 marks a year in which we cross 10,000 crores of revenue, a milestone for the first time, reporting a full year consolidated revenue of 10,739 crores, a growth of 40% year-over-year.
We are currently maintaining a guidance of 13,500 crore revenue along with an EBITDA margin of 7 to 7.5% and a PAT margin of 4% for FY27.
The sale of gold bars and gold coins was again one of the factors which led to a decline in the margins in Q4 as compared to Q3.