Thank you, Julius. Good afternoon, everyone.

On behalf of Nuvama, it's our pleasure to welcome you to P N Gadgil Jewellers 4Q FY '26 earnings conference call. From the management today, we have Dr.

Saurabh Gadgil, Chairman and MD, and Mr. Deepak Vijay, CFO.

I would like to hand over the call to the management for their opening remarks. Over to you, Saurabh.

Thank you, Ayush. Good afternoon, everyone, and a very warm welcome to the Q4 and the full year FY '26 earnings conference call of P N Gadgil Jewellers Limited.

I hope all of you had opportunity to review our quarterly results, press releases, and investor presentation, which have been made available on the stock exchanges as well as on the company's website. Before I take you through the presentation, I would like to begin by expressing my heartfelt gratitude to our customers, employees, our vendors, our partners, shareholders, bankers, and all you well-wishers, whose unwavering trust has been the cornerstone of everything we have achieved so far this year.

FY '26 has been truly a defining year for PNG, a year in which we crossed several meaningful milestones, expanding to new geographies, and reinforced the depth of our 195 194-year-old legacy. Most importantly, FY '26 marks the year in which we crossed 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.

This is a moment of great pride for the entire PNG family, an aspiration we have nurtured for many years and one which we are deeply humbled to have achieved. This performance was meaningfully supported by an outstanding fourth quarter, in which the total consolidated revenue grew by 123% year-over-year to 3,544 crore, a clear reflection of the strong festive and continued demand across each one of our core business segments.

The quarter benefited from a strong wedding and festive season, complemented by record-breaking event-led sales. Starting with our foundation day, we recorded a sale of 365 crores, with healthy contribution across all product categories.

This was followed by Gudi Padwa, a culturally important festival in Maharashtra, where we recorded sales of 171 crores, a 38% YoY growth. Subsequently, we to commemorate our 10,000 crore mark milestone, we celebrated a Gratitude Day offer with our customers, in which we delivered a sale of 225 crores, a heartwarming response from our patrons that reaffirmed the emotional connect our brand enjoys across markets.

Coming to operational performance, the store expansion including geographical diversification remained a key theme throughout the year. During the FY of FY of Q4 2026, we added 12 new stores: 8 COCO, in which 3 legacy and 5 lifestyle, and 4 FOCO, 1 legacy and 3 lifestyle, taking our total store count to 78 as of 31st March 2026.

On a year On a full year basis, we added 25 new stores, reinforcing our position as one of the fastest growing organized jewellery brands in the country. Our Q4 expansion also included strengthening our presence in Maharashtra and entering new potential markets like UP, with the launch of stores in Gorakhpur and Banaras.

Further, I would like to briefly address on the on the margins, which we have the clarify which we have also uploaded on the on the stock exchanges. As of when you compare Q4 FY '26 versus Q4 FY '25, there's a gross margin dilution of almost 2.3%, 230 basis points.

The company had consolidated gross margins of in for Q4 FY '26, which went down by 2.3 by 2.3% year-over-year. The three factors primarily which can identify to this are a higher share of gold bars and coins in the overall sales mix.

This has This can be attributed to a 150 basis point or 1.5% decline. The share of gold bars and coin sales in the overall revenue mix rose 28% in Q4 FY '25 to 40% in Q4 FY '26.

In value terms, it rose from 450 crores to 1,400 crores. As this segment operates on a structurally very thin spread, the company's overall core retail jewellery business, the the elevated contribution compressed the consolidated gross margins due to consumer shift of gold from consumption to gold for investment in Q4 FY '26.

All gold I would like to once again reiterate that all gold the gold bar and coin sales in the in the period are purely B2C to customers, and there is no refinery or B2B business in this. In the Continuing the same point, in Q4 of FY '26, we we saw a 1% lowering in the studded jewellery mix.

Now this was a one-time impact due to the foundation day and the Gratitude Day offer, wherein there was heavy discounting on gold making charges and which led to almost a 1% drop in the studded ratio as compared to Q4 FY '25 FY '26. Q3 versus Q4, there was a 1% lower in studded ratio.

Also, as to mention as we have mentioned ahead, with the promotional activities targeting Gudi Padwa and with the with this foundation day and the Gratitude Day offer, the marketing promotion and and trade discounts were in excess of 50 crores, which again had an impact on the margins. These three together have been having able to we have been able to demonstrate why there was a dip in margins in in Q4.

If you look at on a year-on-year basis, we are still we have we have still be able to stick to our estimate of, 12% gross margins and with around almost a 3.75% to 4% PAT levels. Going ahead, there's also a question on the Q4 FY '26 versus Q3 of FY '26.

Here too, I would like to point out that the franchisee sales proportion had had gone up by almost 200 crores in this quarter, as we added five new franchisees, and franchisee gross margins are in the range of 2.5% to 3%. This was again one of the reasons why the margins saw a dip as compared to Q3 versus Q4.

Again, the gold the the sale of gold bars and gold coins was again one of the factors which which which led to a decline in the margins in Q4 as compared to Q3. If if you look at the the business in terms of value, it would have the gold bars and coins in Q3 were 1,100 crores, which increased to 1,400 crores in Q4.

The in a similar way, the the studded ratio went down by 1%, which again had a negative impact on the margins in Q4. As as far as the company's hedging is concerned, our monthly sales is in the range of around average of 600 kilos, the inventory we hold is around 2,000 kilos, and our hedging as we speak as of Q4 was around 67%.

This hedging in the in the in the Q4 of FY '25 was in the range of 55%. As committed, we have increased the hedging by 10% to 12%.

The the gain from unhedged portion of sales in in the in the Q4 of FY '25 was 74 crores, in Q3 of FY '26 was 45 crores, and in and Q4 FY '26 was 20 crores. This was another reason why we have we have seen the dip in the margins.

Having said this, the company remains committed to the gross margin guidance of around 12% to 13%, with an EBITDA of 7% to 7.5%, and a PAT of 4%, which also is in line with the current year's performance. I would now ask our CFO Deepak to further continue with the with this commentary ahead.

Thank you, Saurabh, and good afternoon, everybody. I will take you through the financial performance of P N Gadgil Jewellers Limited for Q4 and the full year ended March 31, 2026.

We are pleased to have crossed the landmark of 10,000 crore revenue milestone during FY '26, a defining achievement in the company's growth journey. For FY '26, consolidated revenue grew 40% year-on-year to 10,739 crores.

Gross profit grew 83% year-on-year to 1,302 crores, with gross margin expanding by 200 bps to 12% on yearly level, reflecting a structural improvement in the product mix. EBITDA grew 90% year-on-year to 704 crores, with EBITDA margin improving by 180 bps to 6.6%, which is in line with our earlier guidance as well.

PAT grew 88% year-on-year to 410 crores, while PAT margin expanded by 100 bps to 3.8 crores in this year versus last year. ROCE and ROE improved to 30.5% and 21% respectively year-on-year on a full year basis.

While coming back to the segmental performance, our retail segment continued to remain the primary growth driver, reporting a revenue growth of 51% year-on-year to 8,131 crores, led by healthy same-store sales growth of 43%, driven by wedding and festival demand, improved product mix, and contribution from newly added stores. Studded ratio for the full year has also increased to 9.9%.

The e-commerce segment delivered robust growth of 105% year-on-year to 529 crores, reflecting increasing digital adoption and rising consumer preference for convenience-led jewellery purchases. We continue to strengthen our digital capabilities to further enhance customer engagement and accessibility.

The franchisee segment also demonstrated strong momentum, growing 83% year-on-year to 1,292 crores, driven by store expansion and healthy traction across existing operational markets. The franchisee-led models continue to support our asset-light expansion strategy, while strengthening brand reach across diverse geographies.

Our average transaction value, ATV, for FY '26 stood at over 1 lakh, reflecting both premiumization in our basket and the rising aspirational quotient of our customer base. Our key operational metrics includes average revenue per store of 137.7 crores, revenue per square feet of 4,51,000, net profit per store of 5.25 crores, and an inventory turnover ratio of 3.8x, together underscoring sustained operational efficiency.

Now coming on the Q4 performance, Q4 FY '26 particularly played a key role in helping us surpass 10,000 crore revenue milestone. Consolidated revenue from operations for the quarter grew 123% year-on-year to 3,542 crores, driven by robust demand across retail, franchisee, and e-commerce channels.

Gross profit for the quarter grew 80% to 344 crores. Gross margin stood at 9.7%.

The moderation in Q4 FY '26 was primarily driven by higher share of gold bars and coins, a lower studded jewellery mix in the overall sales mix, and targeted customer acquisition discounts in the new market, and a bit of the gains on the unhedged portion which coming in the sales. The higher sales of gold bars and coins contribution reflected a temporary demand shift towards gold as an investment rather than consumption, and further elevated by geopolitical situation.

However, with the honorable Prime Minister's appeal and the increase in import duty, we expect consumer behavior to gradually shift, with a greater flow of old gold being exchanged for new jewellery. Over time, these gold bars and coins is also expected to find its way into jewellery demand as conditions stabilize.

We therefore view the gross margin impact as largely one-time and mix-driven, not structural, and remain focused on improving product mix and margins as our store matures. EBITDA grew 53% year-on-year to 166 crores, with EBITDA margin at 4.7, while PAT grew 46% year-on-year to 90 crores, translating into a PAT margin of 2.5.

Retail grew 102% year-on-year to 2,600 crores. Franchisee grew 132% to 430 crores, driven by asset-light expansion across Tier 2 and Tier 3 markets.

E-commerce grew 67% to 152 crores, and the other segments contributed 357 crores. Our same-store sales growth for Q4 FY '26 stood at robust 86% year-on-year.

Despite the sharp run in gold prices, we saw positive traction in volume. Gold grew 27% year-on-year by volume in Q4.

Silver volumes rose 37% year-on-year, and diamond volumes rose an exceptional 155% year-on-year. We are also pleased to share that during the quarter, our long-term credit rating was upgraded to A1 to AA+ Stable from A-, while the short-term rating was reaffirmed at A1+.

The rating upgrade reflects the continued strengthening of our balance sheet position and disciplined approach towards capital and debt management. This further enhances our ability to access capital at competitive terms as we continue to scale the business.

In summary, FY '26 has been a year of strong and profitable performance, year in which we crossed the milestone revenue, expanded our network to 78 stores across 36 cities, delivered an EBITDA margin of 6.6, and a PAT margin of 3.8. As we step into FY '26 with strong momentum, a clear strategic playbook, and a healthy balance sheet to support our continued growth.

While it is still early to fully access the overall impact of the evolving situation, and we continue to calibrate our strategy accordingly, we are currently maintaining our guidance of 13,500 crores revenue along with an EBITDA margin of 7% to 7.5% and a PAT margin of 4% for FY '27. However, depending on how the market situation evolves during the ongoing quarter, we'll update the guidance if required in the next quarter.

We believe our strong operational execution, improving business mix, and resilient demand environment position us well to navigate the evolving landscape. As we step into FY '27, we do so with strong momentum, a clear strategic roadmap.

With that, we now conclude our opening remarks. We can open the floor for questions.

Thank you so much.

Hi. Thank you, sir, for taking us through the presentation.

I just had one quick question. Due to the recent increase in customs duty and the advance authorization that was announced yesterday on import of gold, do you see any impact on the sales or margins on account of this?

Thank you for the question. See, as far as the advance authorization is concerned, it is mainly for exporters, people who are importing gold for exporting jewellery.

We don't fall in that category, it's not applicable to us. Our business is purely domestic.

As far as import duty is concerned, it's directly passed on to the consumer, it will not have impact on the margins. What it may have a positive rub-off is it may induce people to buy less of bars and coins, which typically carry lower margins, and may push the interest further to gold jewellery by exchanging old jewellery for new.

We are hoping that the jewellery sales will see a further uptake in the year and would be a positive contribution to margins. ]:

Thank you, sir.

Hi, team. Thank you for taking my question.

Yash from Edelweiss this side. Thanks for the detailed press release, by the way.

I have few questions. Basically in the press release, as you already mentioned about the gross margin impact because of different advertisements or the schemes we provided.

Earlier you have guided about the BTL 1.5% we budget for advertisement cost. How should we think about budgeting ATL like what you provide as a scheme, because we are entering into new regions, how you guys budget for the same?

See,

Yash, thank you for the question. This was not really regarding more about advertising spend.

It was on the trade discount offers which we had for the Gudi Padwa and primarily for the foundation day and Gratitude Day. These offers were discount on making charges.

We had a fixed making charge of ₹399 per gram, which costed the company in the range of around 40 to 45 crores. This is what is the impact which has, and this is a one-time impact for Q4.

We don't see this impact being carried forward ahead. Guiding on the A&P spend, both ATL and BTL, 1.5 is what we would stick to or in fact we would try to go a little lower, considering the year wherein we are seeing the import duty where the focus will move more towards exchanging old gold for new gold.

Got it. Which means ideally going ahead, the schemes which we will provide on different festivals will also be included in this 1.5% budgeting.

Absolutely.

Got it. My second question, please correct me if I'm wrong, but basically the lifestyle business was not in our base, and that is right now 5%, 6% of our revenue, which is like 30% plus studded ratio.

Ideally still YoY the decrease in studded ratio, if I adjust for lifestyle, the studded ratio has decreased more in the core business. Is my understanding correct, and follow-up on that, any assessment you would like to provide how to think about this?

Yeah. The lifestyle business is around a 70 crore business.

It's only 0.7% of the entire turnover. It's not what you're talking in the range of 30%.

Out of this, around 30% would be studded. It's a very small portion of the entire studded business.

Got it. Thanks for taking my question.

Thank you.

Yes, sir. Thank you for the opportunity.

First question is what was the proportion of inventory hedging in FY '26, and what is your plan going forward in FY '27? Because typically we have seen when the inventory hedging is on the lower side, there is a fluctuation in the margin, which is not liked by the markets.

Just wanted to understand your strategy on the hedging side, what the proportion was in FY '26, and what is your plan for FY '27? Thank you.

Sir, I'm audible now?

Hello? Yeah.

Sir, your line was cut in between,

Yeah. Okay.

My question was regarding the proportion of hedging that was there in FY '26 and what is your plan for FY '27? Because as we have seen, when the hedging is on the lower side, typically it leads to margin volatility, which is not liked by the markets.

That was my first question. What was your hedging proportion in FY '26, and what is your plan for FY '27?

Hi, Bharat. Deepak here.

I would like to take this question for you. As Saurabh has already explained that our monthly sales is in the range of 600 600 kg of gold on a monthly basis.

We at the end of March '26, we are covered for 1,300 kg of gold on the hedging through various GMLs and MCX and and other instruments. This is 67%.

When I talk about last year FY '25 quarter four, we were at 57%. There is an improvement of 10% year-on-year quarter on the quarterly basis year-on-year, it's a 10% improvement.

Now if I go back to quarter three this year FY '26, we improved from 57% to 63%. That's a gradual increase which we we do.

We don't want a margin volatility in our business, we there is an endeavor to completely mitigate this and bring this hedging to over 70%, 75%, maybe 80%. Right now what has happened also in the last year that the margin and the premiums on the MCX has has gone up to 15%, 20%, which was blocking a lot of the cash.

Where the cash burden on from that point of view if we lock this margins, this was very expensive. We also needed funds for the operation.

If we block everything there, then the funds get trapped up there. That's even considering that to cut down the volatility in the margins, we have improved from 57% to 67% already in this year.

That also you will see the margin which was there in FY '25 had a bigger share of unhedged gain and respective to this year FY '26.

Okay. This 67%, just to harp on this further, this 67% you gave, that was for quarter four.

Actually I wanted the hedging portion for the entire FY '26, like Q1, Q2, Q3, Q4 combined, what was for FY '26, and FY '27, you have already given an indication that you'll probably try to move to 75% to 80%. Just wanted hedging number for FY '26 entire year.

This is Varun Ganani from MC Research. Yeah.

Sir, my question was that the 67% hedging percentage that you gave, that was for quarter four. I wanted the hedging proportion for entire year FY '26, all the four quarters combined, what average was the hedging proportion for entire FY '26?

Last year in quarter four last year, we were at 57%, we gradually increased to 63% in quarter three, then to 67% in quarter four. On an averagely basis, we were at round about 60% for the full year.

Okay.

Okay. This you plan to take it to 75% to 80% in this year, FY '27, right?

Further,

we plan to take it to 80% to remove the complete volatility in the margins.

Okay. This 80% will be by FY '27, or will it take more time?

No, see, we are already at 67%, 70%, this is what we want to continue ahead. Next year we should be at 75% to 80%.

Okay.

Okay. Sir, last question from my side, what is your sense that because of the customs duty increase, how will it impact the demand in the short term, and any comments you would like to give on the same?

See,

we have already launched a program called Suvarna Swaraj, where we are trying to encourage people to come up with old gold lying in lockers, lying into homes to remake into new jewellery. I think this entire year, the flavor would be towards that.

I'm expecting that the sale of coins and bars will go down drastically. Prices have gone up, and we'll see a lot of exchange gold coming in, which would be beneficial because it'll come up with making charges.

Studded, I think diamonds should be doing well for the year. I don't see per se impact on the business, but yes, bars and coins, I think, will definitely have a impact.

Okay.

Okay. Thank you, and all the best.

Thank you.

Sir, just wanted to know what is the share of the old gold exchange in your mix for FY '26? Second, what would be the share of customized jewellery sales in the total mix?

Old gold share is around 40% of our entire business, and we're expecting that the old gold trend picks up, we should be at around 50% plus as far as old jewellery to new jewellery is concerned. Made to order again is at around 30%, 35%, and I think that should continue at the same level.

Maybe if we're looking at a greater exchange of old gold, maybe 3%, 4% can be a further rise in the made-to-order business. Overall, we're seeing that jewellery contribution in the overall mix will definitely see an increase in this financial year.

Last question would be what would be the share as you mentioned in FY '25 there was some inventory gain, if you could share that absolute amount, that would help us in the analysis, and absolute amount for FY '26 and '25. See,

Q4 of FY '25, the gains were in the range of around 70 crores, wherein if you look at Q4 of FY '26, the gains were around 20 crores. As we increased hedging, the gains have come down.

Right, sir. Thank you, sir.

Hi, sir. Am I audible?

Yeah. Sir, I had few questions.

Sir, what is our volume growth in Q4, and if you can share your outlook for volume growth for the next year?

Ankur. Hi, Deepak here, Ankul.

On a on gold as an category, we have grown on the quarter on quarter year on a yearly basis Q4 FY '25 versus Q4 FY '26 as a 27% on the entire gold segment. Silver, we have grown 37%.

Diamond, we have grown 125%.

Sir. If you can just highlight what will be the outlook for

Volume I'm talking about, yeah. Part of this has been due to our new store addition and also like Deepak had mentioned before, the same-store growth also has been quite strong.

It's a combination of new store and same-store growth. In volumes, we have grown by 27% in gold volume.

Understood, sir. Any outlook on volume for the coming year, FY '27?

See,

FY '27 now, volumes are a percentage of jewellery and bars and coins. I think bars and coins would see a slowdown in this year.

It's very difficult to talk on the exact volume side, but we feel that margins which come from making charges should be healthy. I think when you look on the level of gross margins, EBITDA, and PAT, I think the guidance can be on that front.

Net volumes, which include jewellery and bullion exactly to quantify right now is difficult because it's only been a week after the import duty has been hiked. Let us see how much of fresh new gold is being bought.

Understood, sir. Understood.

I think my another question would be, sir, you had earlier guided for a 12,000 crore top line for FY '27, but in your initial opening comments, you have mentioned for a 13,500 crores of top line. What would be driving this higher growth, or why have we revised our guidance upward?

What would be the driving force for this?

For the year ended March 2026, we had guided for a 9,500 crore top line. We crossed that by 1,000 crores, and we're at 10,700.

The good factor has been the response which we received outside Maharashtra, primarily in UP, where the non-Maharashtra states today contribute 10% of the entire business. Also, the same-store growth has been very healthy.

We feel looking at these positives, we feel that 12,500 can be stretched to 13,500, and that's where the guidance is coming from.

Understood, sir. That would be really great, sir.

Another question would be, I think our B2B bullion sales have increased significantly. How should we think about this segment going forward, and can you explain the nature of this business?

See, this is not B2B. Pre-IPO, we had a component called old gold, which was sold for refining.

We used to sell gold to refinery and purchase back new gold. As of September 30th, 2024, that has been discontinued, and post that, we're not had any sales of refinery gold.

Primarily this year, the hike has been due to people's interest in gold as an investment. We have added a lot of new consumers, specially in Q4 of this year, which are looking at investing in bars and coins.

These are all B2C sales. They are not a sale which were B2B.

The hike has been very high, and with our strong penetration in Maharashtra, we have been able to garner a lot of new customers. Hence, the gold bar, gold coin, and what we call as gold vedhani here, gold rings which in pure gold, is what has really led to a sharp rise in bars and coins, which we also see as a investment for this year, because people normally use bars and coins to make new jewellery.

I think this would be advance for us when this year people should come with that to convert that into new jewellery.

Understood, sir. Just a follow-up on this, I think your gold bars and coins share was around 40% in Q4.

That has impacted our margins. What would be the contribution going forward from this gold bars and coins segment?

See,

we always were in the range of 25% to 20 Previously it was 20%, with gold going up as interest, it had gone to 25%, 28%. Q4 had been exceptional, where it had gone to 40%.

I think this year it should again stabilize back to that 25% or even lower levels. That is what we've been always saying that this year is going to be a year of a lot of new jewellery being bought using old jewellery, and bars and coins as a category this year will stay a slowdown.

We have to give an estimate, we should be at around 25% for this financial year.

Got it, sir. That would be great, sir.

Lastly, my question would be on the front of QIP, I think you had told that the progress is going on. If you can just highlight what's the progress on the QIP?

See,

in terms of progress, like I said, there's an enabling board resolution, which is till the end of August. That is where we are.

We haven't really thought on going ahead on that front at this point of time. We had a good year, so, as we move ahead now, there's something which we would want to explore, but QIP is not an impediment for us to grow our business.

The business is self-sufficient, so that's something which we will address as time goes by, looking at the market conditions and looking at the sector.

Yeah. Thank you for the opportunity.

My first question is the clarification that the management has provided for the margin drop. Quite a few reasons appear more structural than one-off.

For example, discounts that you mentioned on foundation day and Gudi Padwa, there is a high likelihood that they might repeat next year. Also, discounts you mentioned in the new markets, as the company expands to newer geographies, there is a likelihood that they will also continue.

The last point is the franchisee share, as we open more and more franchisee stores, FOCO stores, that share also should inch up. Can you elaborate why we think of them as one-off?

See,

that's a good observation, but if you look at it from the entire year's perspective, this has not affected the entire annual margins. When you look at the margin for entire year, this has already been absorbed into it.

This was primarily Q3 versus Q4 and Q-over-Q, where we have seen that we had a lot of franchisee openings in one quarter, that has led to the franchisee margins being low has impacted margins. You have rightly mentioned that discounts are a part of it, but this foundation day offer, where we offered gold making at ₹399, and the Gratitude offer, these were only one-time activities.

They are not annual calendar activities. Now that I was saying that these instances for the year are kind of not strategic.

Like I mentioned, firstly the impacts is only 0.5% when it comes to the discount side of it. What was really has been the major driver which has brought margins down has been the bars and coins, which typically are in the range of 25% 26%, which for Q4 had gone to 40% because of people's interest in looking at gold from the investment perspective, and we've garnered a lot of new customers on that front.

We also expect that these customers would eventually convert into jewellery in the coming years. The Gratitude Day sale and the foundation day were only one-time activities.

Gratitude mostly was thanking people for the 75-store success of PNG. Most of these numbers would not be strategic, and that's why if you look at the entire year, they have been factored into, and the entire year numbers, margins look on track as what we had projected.

Right. Sir, you mentioned as one of the corrective measures, you'll be calibrating the coin sales, can you elaborate how exactly you'll be doing that?

Sorry?

You mentioned in your clarification that you'll be calibrating the gold coin sales, gold bars and coin sales exposure, and you'll reallocate the capital towards jewellery. Can you elaborate how exactly you'll be doing that?

It is being done by the industry where jewellers are encouraged of not selling more than 5 g gold coins to customers on a B2C level, and looking at more lightweight jewellery and looking at getting old for new, encouraging people to buy to exchange old gold jewellery for new. I think this would be a effort across the industry.

Also, the import duty hike will have a natural impact on gold investment demand going down. This is what we're seeing that jewellery demand is kind of inelastic, but investment demand is elastic, and when duty has gone up, we'll see a dip in people's interest in gold as an investment in bars and coins.

Right. My next question is on the guidance for FY '27, where we are guiding for 13,500 crores.

What impact do you think this import duty hike might have on this guidance? See,

import duty hike primarily would have an impact on the bars and coin sales. Like I mentioned before, we don't see an impact much on the jewellery side.

If you look at our business in terms of sales, there'll be a portion of bars and coins which would see a negative impact, and I think that should be in the range of 20%, 22% of total sales. The balance 80% would be jewellery, and that's where we'll see a jump.

I think there would be a positive impact if any on the as far as import duty is concerned. We're also toying with lightweight jewellery and lighter caratage jewellery.

That's something which is on the cards for this year. We're looking at 18-carat jewellery, also 14-carat jewellery.

All this will ensure that the jewellery sales remain intact and would not have a negative impact on the margins.

I would also like to add a few numbers here for you for a better understanding. In particular, retail, we have closed on the year as round about 8,000 crores.

The next year targets and the guidance for the retail, which we have taken under in our AOP, is round about 9,800 crores, which is a 23% increase. Now if I break this down into how this has come up, this year we have seen a SSG of 43%, primarily driven by the ramp-up of the stores which are not matured for more than one year and two years.

For the stores which we have opened for more than three years, we have taken an SSG of in the range of 5% to 10%. For the newer stores, the ramp-up is anywhere annualized, so that's very healthy and similar for one and two years when we increase our stock turnover from that.

This 22 23% on an base of 8,000 crores is very much achievable. We also don't plan to open too many COCO stores here.

Yeah. Hello?

Hello? Are we audible?

Hello? Hello?

Yeah. Go ahead.

Yeah. My question is that we have been seeing that inventory turnover ratio has been declining for us compared to the previous year.

Also if we see the trend, just wanted to understand, is it due to that the investment done in the new stores, that is why the inventory is high and that is why our turnover ratio has been dropping?

Yes, absolutely, you are right there. If you'll see, most of our stores are opened in Q4.

We have opened round about eight stores in COCO category in Q4 itself. That has what is not matured into the sales right now, and that's why you see an impact on the stock turnover for the year.

Having said that, 3.8% in this industry is an healthy stock turn. That's how we see it.

Also the value has increased on the entire gold as a commodity. Having considering all those factors, 3.8 is what we have closed the year on.

Primarily you are right, the impact of new stores which were opened in H2 is the primary driver of this coming down compared to last year.

Okay. Sir, I just wanted to ask then, currently if we see that mature stores, our flagship stores, if you see that over the past two, three years, have our inventory turnover ratio there has been stable or have we seen decline or increase on it?

It has been gradually being flat and declining a bit, but not too significantly. Because of the quarter four this year, which we have taken the stores which were open predominantly in quarter four has been the major impact in the stock turnover.

Sir, just you men

Hello, am I audible?

You are. Please go ahead.

Hello?

Please go ahead.

I just wanted to know the gross margins for the gold coins and bars segment and the normal jewellery segment.

On the gold bar and coins, we operate on a very thin margins in the range of 0.5% to 1%. Non-studded jewellery is in the range of 12% to 13%, 12.5% to 13% is the right number to place on the margins for the gold jewellery.

There's a delta of 12 to 12.5% between bullion, gold bar, and the jewellery. What we have been trying to also explain that that's been the major driver for the margin drop.

Once the sales goes down, which is anticipated for the next quarters in next year because of these recent appeals from the honorable Prime Minister, the margin should anyways pick it up. That's the guidance.

The franchisee gross margins, I think I heard it was around 2% to 3%. Am I right?

That's right.

Okay.

Franchisee is like a fall-through. All the costs are borne by the franchisee, the gross margins are almost like net margins.

Okay.

It also improves the return on capital employed heavily with a lighter balance sheet.

What would be the ROCE on our own stores and the FOCO stores?

Our ROCE for this year, just give me a second. The ROCE is 30% 30.5% for this year, and ROE as 21% for this year.

On the franchisee, pretty much there is no investment. Everything which flows through contributes to the uptick in the ROCE and ROE.

Hello?

No further questions from my side, sir.

Okay. Thank you.

Am I audible?

Yes.

My question is the peers in the industry, they have reported their gross margins, EBITDA in the normal range as compared to Q3. I just wanted to understand what has led specifically the decline on our side?

Is it on the jewellery segment, we are facing some competition? The demand is low?

Just wanted the insights on it.

I think we'll have to recheck that at your end also, but what we have seen the results, the big players who are leading the industry, the gross margins have dropped for the quarter FY '26 versus last year quarter is in the range of 600 bps. That's what has the numbers been which we have looked at translated.

Also, the other players also have shown the similar trajectory in terms of the margin drop, especially in this quarter. Again, like I mentioned, it is primarily due to the change in product mix, which I think is primarily Q4 had a lot of interest in gold investment, which has translated into a big rise in bars and coins.

That really has been one of the major factor. Like we've given the guidance going ahead, I think this should be neutralized.

Thank you.

Hi. Thanks for the follow-ups.

Just a quick follow-up, you had 10% of your revenue is from non-Maharashtra region or state, just want some like-to-like number, what is the made-to-order mix and inventory turns over there? I know it's too early to get any view, but still, any like-to-like number?

See, made to order is a little lower there than compared to Maharashtra, but still it's a good proportion. Around 22% of the entire sales outside Maharashtra are made to order, while in Maharashtra, the number is at 30% to 32%.

Got it. Inventory turns?

I will take the question. On the annualized stock turns, while most of these stores have opened only for six months, eight months into the year at the close of the year, we are already crossing in stores which are in Bihar at 1, UP at 1, surprisingly and to our surprise also, Indore has performed at 1.4 on an annualized basis until now.

These are very healthy for the new stores outside Maharashtra, and this gives us encouragement to also venture into these geographies. Like our guidance, we had projected around 0.8 stock turns for the year one, we have surpassed the guidance, and all the stores primarily UP, Bihar, and MP are doing annualized stock turns of 1 in the first year itself.

Very encouraging. Thanks a lot for answering.

Thank you.

Thank you.

Sir, thanks for taking my question. Wanted to check on the outlook of newer store openings in upcoming FY '27.

If you can just throw some light on the newer store which are going to come in terms of number of stores, as well as on the non-Maharashtra store count in FY '27, how many stores you are planning to open?

Hi. I will take the question, Sandeep.

In our outlook, we have planned for five COCO stores: two PNG legacy stores and three lifestyle stores. The locations which we are venturing into is in Gurgaon, strengthening our position in Lucknow, and we have also venturing into Gujarat.

We will see now with the new strategy what happens, but these are the newer locations which we are venturing into. Most of all of them which we have planned this year is outside Maharashtra.

We plan to open five COCO and

Okay.

20 franchisee for this year. Like we mentioned, we on the asset-light model for the year, of 25 stores, we try to do 5 to 7 COCO, and the balance will be FOCO.

We're expanding further standing in the state of UP, Bihar, MP, but adding Gujarat this year, and we'll be also looking at Gurgaon, which again is neighboring to UP, but Haryana.

Okay. Overall, just to confirm, is it 25 stores, right?

And 20 would be approximately FOCO.

We also have a lot of demand for franchisees, right now evaluating it,

but as of now,

it looks on track.

Thank you so much for taking my questions. Thank you.

Thanks, Sandeep.

Thank you for the opportunity once again, sir. Sir, just two questions from my side.

Sir, one, you said that the proportion of gold bars and coins in quarter four was close to 40%, but I wanted the figure for entire year FY '26. What was the proportion of gold bars and coins in our overall sales?

Hello? Hello?

Yeah. Hi.

In the overall year, the bullion or the gold bar is in the range of 33%.

Okay. Sir, one more thing, related to this QIP, the purpose of QIP was that we will raise obviously capital for growth and also bring down the promoter shareholding to the 75% requirement.

Just wanted to check on the promoter shareholding, we have time till September 2026, or we have more time for that? Because

September 2027. We have three years, no?

We listed on September 2024, we have time for September end 2027.

Okay.

Thank you.

Thank you, everyone. We truly appreciate all the participants for taking the time out to join us today and for thoughtful and insightful questions.

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Advisors. Wishing all of you a wonderful evening ahead.

Thank you so much.