Thank you, Ananya. Good afternoon, everyone.

On behalf of Nuvama, it's a pleasure to welcome you to P N Gadgil Jewellers Q1 FY '27 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. Good afternoon, everyone, and a very warm welcome to the Q1 FY '27 earnings conference call of P N Gadgil Jewellers Limited.

I hope you had a great opportunity to review our financial results, investor presentation, and quarterly update, which are uploaded on the exchanges and on the company's website. At the onset, I'd like to thank our customers, employees, franchisee partners, vendors, vendor partners, and shareholders for their continued trust.

Their confidence has enabled us to deliver our highest ever first quarter, beginning FY '27 on a strong note. The Indian jewellery industry remained resilient throughout April to June despite record gold prices.

Demand was supported by weddings and an outstanding Akshaya Tritiya, with festive sales growing 80.3% YoY to ₹251.4 crores. Customers continued to gravitate towards lightweight jewellery, studded products, and old gold exchange trends, and that continues to favor trusted, organized players with strong brand and transparent pricing.

Against this backdrop, PNG delivered a revenue of ₹2,413 crores, up 41% YoY. EBITDA grew 57% YoY to ₹192.4 crores, with the EBITDA margin at 8%, while profit after tax grew 52% YoY to ₹105.3 crores, with a PAT margin at 4.4%.

This performance reflects the strength of the PNG brand, healthy consumer demand across categories, and our continued focus on disciplined execution and operational excellence. Operationally, the quarter was about strengthening our existing network while preparing for the next phase: site identification, franchisee onboarding, and execution planning for the expansion pipeline.

We ended the quarter with 78 stores. Looking ahead, we remain committed to opening around 25 stores during FY 2027, taking our network to approximately 103 stores by the year-end.

A few launches are planned in Q2, while the bulk of expansion is planned across Q3 and Q4 through a franchisee-led approach across both legacy and lifestyle formats, deepening our presence in Maharashtra while expanding our reach in Uttar Pradesh, Bihar, Central India, and NCR. Despite elevated gold prices, our performance remains in line with our previously communicated guidance.

Supported by a 194-year-old legacy, disciplined execution, growing pan-India presence, and a continued formalization of the jewellery industry, we remain confident of delivering sustainable growth throughout FY 2027. With that, I'll hand over the call to our Chief Financial Officer, Mr.

Deepak Vijay.

Thank you, Saurabh, and good afternoon, everybody. Let me take you through the financial performance for the quarter ended June 30, 2026.

Consom revenue from operations grew 41% year-on-year to ₹2,413 crores, driven by broad-based growth across retail, franchisee, and e-commerce. Retail grew 56% on the back of 46% SSSG.

Franchisee grew 8% and e-commerce grew 20%, reflecting continued traction across marketplaces, our D2C platform, and digital initiatives. Gross profit for the quarter stood at ₹319.6 crores with gross margin of 13.2%.

EBITDA stood at ₹192.4 crores, up 57% year-on-year, with EBITDA margin expanding 80 bps to 8%. Profit after tax stood at ₹105.3 crores, up 52% year-on-year, with PAT margin up 40 bps to 4.4%.

Basic EPS came in at ₹7.8 against ₹5.1 in quarter one last year. Our studded jewellery strategy continues to gain traction.

Retail studded ratio improved to 10.9% from 9.9% in the previous quarter, with our recently launched stores in North and Central India already running studded ratios of 15% to 18%, well ahead of our mature Maharashtra network, while Lifestyle by PNG posted studded ratio of 32.9%. Our gold bars and coins business also continued to strengthen customer engagement, with 53% of gold bars and coins purchases converting into jewellery this quarter, up from 46% in the last year.

On revenue mix, retail contribution rose to approximately 78% of total revenue, while bullion sales normalized to around 22% of retail revenue. As we move through the year, capital allocation will remain focused on high-return store expansion, strengthening our franchise network, digital investments, and operational excellence.

With that, we conclude our opening remarks and would now be happy to take your questions. Thank you.

Hi. Thank you, team, for taking my questions, and congratulation on good set of numbers.

Am I audible?

Yes, you are audible, Yash. Yeah.

My first question is on gross margin. YoY, gross margin is pretty much flat, while if I see the change in mix, we have seen a very good mix changing towards retail, which is one of the highest margin revenue for us.

How to understand this flat margin?

You have to also compare the adjusted gross margin, wherein we have given the hedging gains separately, Yash. If you'll remove that, we have increased it by around 40, 50 bps compared to last year.

Got it. One more follow-up on the same.

Basically, I really want to understand how to read the retail margin for the business, right? Because in retail also, there is a huge sale of less studded or maybe plain gold type jewellery.

What is the ideal retail margin for our business when the studded ratio is in the range of 10-11%?

Yeah. Ideally, the studded have a different margin as compared to the plain jewellery.

These are different, slightly very, very different. With an studded ratio of 10% to 11%, we should be in the range of somewhere between 12.5% to 13.5% is what we should target.

Got it. Assuming around 20...

In the retail sale, our sale of jewellery has increased to around 80%. 20-21% is only bars and coins.

Keeping that and looking at studded, plain gold, and bars and coins in the retail category, the gross margins should be, like Deepak said, between 13% to 14%. Ideally, this is what we had been talking on, and we have been also able to give a guidance on the gross margins considering the impact of hedging gain, which you have shown separately in our presentation.

Got it. Makes sense, sir.

One last question. With our store expansion happening, ideally what our understanding is the other expense will also increase with the same amount, but in this quarter, the other expense is only increased by 5%.

Any specific efficiency or...

I'll take this question, Yash. Yes, the other expenses has not moved in the same proportion as the sales.

A couple of reasons. Firstly, with the, with the demand or the things which have happened in the industry in the beginning of the quarter, we have gone very conservative on our spends.

That is one. That we have not, we have just put kind of leash on any incremental expenses which we could do for the demand thing.

That is in line with the industry going through the phase wherein the demand could be down. We have taken a conservative approach there.

One is that. Second is the scheme redemptions which happens on these schemes.

Those share, the discount on that scheme share is lower in this quarter compared to the last quarter. This has been two new thing.

The marketing spends, we have also gone very, very conservative. We have cut down the hoardings wherever not required, like 250, 30, 250-300 hoardings have been cut down from what it was last year.

We continue to monitor and keep our marketing costs within 1.5%. That is what has helped to keep the cost in check.

Also, there has been no stores which have been planned this year. No, I mean in the quarter, there have been no stores which were planned in the quarter.

No travel, nothing has happened in that side. Going forward, in line with quarter three, quarter four, this should have some increase because the expansions are planned across quarter three and quarter four.

Having said that, we are confident of delivering the guidance EBITDA within slightly higher cost or a comparable cost in quarter three, quarter four.

Makes sense. Thanks a lot, sir, for answering all the questions.

Thank you for the opportunity and congratulations on a good set of numbers. My first question was in line with the sale of coins, etc., which were elevated in the last quarter and which have cooled down this quarter.

It is my request to the management that can this number be given separately in the presentation? What is the difference between the other section in the segmental reporting which we give in the PPT and the 21-22% which we are mentioning of gold coins, etc., as a part of retail revenue?

See,

in retail, what we mentioned as bars and coins is what we talk of the pure gold, what we sell at the stores. This time we have given the details of that, that the average ticket value is less than 5 grams of the coins and bars sold at the retail counter.

Out of that, more than 50% have converted into jewellery. This is a productive sale for us.

The others which are mentioned here is primarily the corporate sales, what we do for companies in bulk orders. That's a very small, miniscule number.

That's why they put in others. Going ahead, we will have three categories like I mentioned: retail, out of which roughly around 78% to 79% would be jewellery, 20% to 21% would be bars and coins, and then the second level would be the franchisee, and the third arm would be e-commerce.

Okay. That was helpful.

The next question from my side, same as a continuation to the question of previous participant on the other expenses. We have seen a big reduction as far as other expenses concerned, while you alluded the reasons for the reduce, primarily no new store openings, etc.

On a normalized basis, what are the kind of other expenses what we are looking at as a percentage of sales?

See, the guidance given by us, we will be on the same lines. Q1 was a little low because we planned this quarter to really focus more on the existing store network.

We had reduced marketing to a large extent since there are no further brand building required in new areas, and we're focusing a lot on on-ground activities. It was also a season when we didn't really have to spend anything more on travel or other sites.

Going ahead for the annualized other expenses which we had planned for the year, Deepak will just give a number to you, should be on track.

Should I wait for the number?

Just a minute. I'm just adding the number together.

Okay.

The other expenses, as we said, will be in the range of let's say 3% round about total sales. Range of roughly ₹200 crores is what we are looking at for the entire year.

Hello? Hello.

Hello.

Hello.

Hello.

Hello.

Hello.

Yeah.

Am I audible?

You're audible. The call dropped in between.

On the other income bit, I understand our accounting for the hedging takes place at a gross margin level. The difference in the other income from 25, from ₹31-odd crores in Q4 versus ₹10 crores in Q1, what plays that?

Other income is primarily the interest part on the fixed deposits which we have.

This fluctuation is so vast. I assume interest should be more or less equally distributed across quarters?

Yes,

this will be equally distributed. The FDs which we have put on mortgage has come down from last year, and that's the major difference.

Because

the difference is huge, from ₹31 crores-odd of other income to just ₹10 crores in this quarter. So...

No, there is, last quarter there is no, just give me a second.

I think last quarter the numbers which we reported is round about ₹12 crores of other income, not ₹31.

Wait.

Just check. Let me also check.

To my knowledge, the number is ₹12 crores.

It's Q4

is 30, is 31 is Q4.

Yes, see, I was talking about Q4 only, ₹31 crores, yes. Ha,

we have dropped down the FDs from the balances. Also,

yeah. All the money which was redeemed from the FDs is sitting on cash on the balance sheet, is it, in Q1?

It's on the cash also, and we have put some money for the margin, for the hedging part also.

Okay. We will be doing around 7% of EBITDA margins for the full year, is that your idea?

That's the guidance.

Okay. Thank you.

That's all from the my side.

Hello. Are you able to hear me?

Yeah. Go ahead.

Yeah. I was asking, in terms of our standalone stores, we are currently at 65.

Two, three years down, PNG Jewellers flagship stores, what kind of store addition that you see going forward? In terms of standalone stores, and what will be the mix of COCO and franchise-owned?

Hi. Right now, we are at 58 COCO stores and 20 FOCO stores between legacy and lifestyle.

We plan to add 25 stores this year, and the count will be 103 in total with 63 stores as COCO and the balance as FOCO. Next year, '27-'28, we plan to add round about 37 stores again with the proceeds which we will have from the profits which will accrue.

We will be adding 37 more stores, and the COCO count will become 86 and the franchise stores will be 54, and the total count will be 140 then, will be 177. We will add 37, 37 stores.

This year we'll add 25 stores, and the next two years, we'll add 37, 37 stores. So, 103 becomes 140, 140 become 177.

Just to add to Deepak, out of that, we're looking at around 113 stores would be our legacy stores, and around 64 stores would be the lifestyle stores as of March 2029.

Sorry, sir, what did you mention, the break-up?

As of March 2029, we should be at a number of around 177 stores, out of which 113 would be the PNG legacy stores and around 64 would be lifestyle stores. That is the plan for three years.

Okay. Understood.

Majority of the new store expansion should come under FOCO, 60-70% of the new stores, right?

As of March 2029, we're looking at around 75 stores would be COCO and around 40 stores would be FOCO. This year the plan would be to expand more on the FOCO side because last year we had expanded more on the COCO side.

Going ahead, the next two years would be a combination of COCO and FOCO.

Understood. Sir, what kind of gross margins you will see three years out?

I'm understanding gross margins will be lower, but we will be consequently have lower employee and other expenses. Our EBITDA margins might be slightly improving trajectory.

In terms of gross margins, what kind of margins do we see three-year out, and resultant EBITDA margins, sir?

Yeah. While we will have an gross margin deflection from the FOCO stores increasing, but at an EBITDA level we will be progressing, and at a PAT level we target to be at 4.5% to 4.7% by FY '29, which is round about 4.4% right now.

Understood, sir.

Gross margin levels won't be comparable like that

of

the dilution in the top margin, but the same margin flows into my PBT for the franchise margin because we don't incur any cost there. At a PAT level, we should be in the range of 4.7% by FY '29 and more.

Understood, sir. This last question, in terms of our borrowings, currently what is the mix of GML in our borrowings, and how do you see this borrowing coming here?

Because the organic store expansion might be lower. We do FOCO more, the operating cash flow that we generate, should it be used to run down the borrowings, or how do we see this mix going forward?

Our borrowing, without GML, is in the range of ₹1,200 crores, which is in line with what we had in March. No major movement there.

In terms of GML, we have round about ₹300-₹400 crores of the loan right now on gold metal loans. Going forward, the projection is that the entire loan, which is round about ₹1,500-₹1,550 crores, by FY '29 we plan to reduce it by ₹500-₹600 crores and will be below ₹1,000 crores by FY '29.

In couple of more years, we should be debt-free in next, let's say, 4 to 5 years, yeah.

Understood. Thank you so much, sir.

good afternoon, everyone. Sir, one question on the Adhik Maas, which I'm sure that would have impacted your quarter one performance also.

Can we expect the Adhik Maas, which would have kind of a postponed the wedding season, can benefit in the coming quarters?

Adhik Maas was not a big turnout this year, primarily silver prices hovering at a high level. Silver is a item sought after during Adhik Maas.

Adhik Maas has seen routine sales. It was not like a stand-out season.

Weddings, like you said, because of additional months, weddings would be a driver. Q2 and a large portion of Q3 should benefit from the wedding which have been postponed by a month.

Sure. In terms of our SSSGs, if I look at our overall growth rates are 41%, correct, and retail growth is 56%.

When I look at the SSSG, is it only pertinent to retail growth rate, which is like 46% which we had reported?

Yes, this is retail SSSG.

Sure. Fair point.

In this quarter, we had shared the hedging gains for this quarter and the last year also, correct? Can you also share the similar numbers for for the last year, how these three quarters has kind of for the remaining three quarters and the for the FY '26?

I think in the last call we reported the numbers for quarter three and quarter four as ₹45 crores and ₹20 crores of gains. In quarter two, the upside and the downside was not much.

It was netted off, but that number is in the range of round about ₹5.5 crores, ₹6 crores. That's what I remember on top of my head.

₹45 crores for quarter four, correct?

Quarter three.

Quarter three. Quarter three was ₹45 crores.

Plus the margins were very high that particular quarter with all of the ₹45 crores being sitting there. Yeah.

Sorry, I missed out for quarter four.

Quarter four was 20. That's what we reported last time.

Sure. Fair point.

Now we are talking about going back to our hedging percentage to go up to kind of a 80-90%. What are the timelines to kind of achieve those percentages?

So,

80 I feel should be doable before Diwali or maybe quarter three. We can target 80 to be round about quarter three.

Next year, we should be touching 90 plus 100 there in the range of 90 to 100 there.

The intent for next financial year is to be fully hedged. We had gone down because of the margin increase, we have come to 70% plus.

Q2 we should be looking at reaching around 80. I think the next year the plan is to be committed to be fully hedged.

Fair point. Just one bit on the other expenses side, also you kind of communicated about reaching to ₹400 crore kind of a number.

Is it only the marketing heads which kind of will give you close to ₹100 crore plus sort of a cut versus last year?

You mean the overall marketing, you're talking overall other expenses?

Yeah. You mentioned about last year we did close to ₹500 crore plus number.

Last year,

yeah, last year two, three triggers why it was very high. Firstly, the UP launch, which was pretty heavy on the P&L.

Round about ₹40-₹50 crores have gone into UP and the and the new new celebrity endorsements which has gone there. That's a big top line, which will not happen this year straight forward because UP is already launched now, and we just go with the organic marketing there and not anything extravagant.

That was one part of it. Also, the marketing sale at the foundation day sale, this year we have no plans.

The the scheme out of it, which is not related because this was more of marketing campaigns, so that was Deepak, this this spend was booked under other expenses. That also will not happen.

That was one-time exercise, will not repeat it.

Naveen, on the side of other expenses, major portion saving would be from one-time brand marketing which was done to look at the Central India belt. We launched a campaign called the Peshwa campaign entering into this region, establishing brand there.

All that was one-time expenditure and then we crossed the ₹10,000 crores mark last year with value sales, this also offered during that. All these one-time expenses which added to the other expenses

Yeah. Naveen, are you there?

I'm there. Your voice was not very audible, yeah.

I said most of what Deepak explained were one-time expenses.

Is it okay now? Because from our side, there's no disturbance.

Now

I have answered the question. Naveen, anything else from your side?

Just two things from my side. Last year we did close to ₹70-₹75 crore inventory gain, if I look at on a profitability side, there would be 50-60 bps kind of a benefit at least on the net profit margin.

I think the underlying margin would be close to 3.2% to 3.3% on a yearly basis. How are we seeing this because given now expenses line will kind of see tapering down, and given now there is up and down in the gold side also has played out, how are we seeing profit margins this year?

As we are growing more on the hedging, the hedging gains will slowly... Hello?

Ha, Naveen.

Hello. I was asking about our net profit margin.

The

PAT margin should be in the range of around 4.2%... We should be upward 4, between 4.1% to 4.25% is what we are targeting, Navin, which is underlying without any kind of hedging gains.

We're also ensuring that the expenses doesn't go up. That's an very very aggressive targets we also have taken, but let's see, we should be able to pull it off with that marketing cuts which we have taken this year.

Sure. That's all from my side.

Yeah. Good afternoon.

Hope I am audible. Sir, my question on the lifestyle format.

Current our studded mix around 32%. Hope I'm audible.

Hello?

You're audible. Go ahead.

In the same segment, many of our listed peers keeping the studded ratio above 50-60% or so, and they are doing around 30-35% gross margin. My question on why we are keeping the studded ratio around 30-35% although we are opened this format for higher studded mix business.

Second, what kind of GM we are doing currently? GM means gross margin we are doing.

Third, last year you guided you want to open around 100 store 100 store by 2030 in the lifestyle format. Are you on track to achieve this guidance?

Yeah.

Your first question on the lifestyle, why the studded ratio, our target, when we started Lifestyle, it was more of gold and modern... Sir, voice is breaking.

Hello. Can you hear us now?

No, sir, still breaking.

This is the same phone, I'm on the same line, there is no difference, there's no change. I don't know why it's cracking.

Is it audible now?

No, is it audible now?

Yeah. On the lifestyle, we had, as I mentioned last, we started Lifestyle more on the gold side, looking at around 80% inventory of gold and only 15% to 18% in studded.

Through the journey, through people's experiences, we realize that studded has to go up, and that is how we have been slowly working on the merchandise mix. Eventually, we plan to take it to 80% studded inventory at the store level and 20% gold inventory, and that will also enable us to reach a 50% to 60% studded ratio in that category.

Hello?

Yeah. I am here.

Once that happens, the margins again would be, like the industry, around 30% to 35% margin on the lifestyle format. On the store side, we have right now spoken up to March 2029 where we are looking at reaching around a 65 to 70 store mark for Lifestyle.

As we go ahead, in the next few years, we should be aiming to reach the 100-store mark for Lifestyle.

Okay. What was the current gross margin?

The current gross margin in Lifestyle would be in around 18% to 20%.

When we can expect this studded mix can go up to 80%?

I think the next two years, because right now we've changed the entire merchandise mix. Our current ratio, studded ratio, is 34%, which in the next two years expect to be doubling from here.

Studded ratio right now in LS is right round about that percent. This will go up with the change of merchandise, Saurabh has mentioned.

We're looking at round about 50% in next couple of years to get that.

Okay. Great.

Best of luck, sir.

Thank you.

Yeah. Thank you for the opportunity, and congratulations on an excellent quarter.

My first question is in the retail segment, we have done very well this quarter despite the Adhik Maas, but both franchise and e-commerce, they have been slightly muted. What reason you would attribute to this?

See, the franchise, like we had mentioned in the update, we were looking at finalizing franchisees, working on the store set-up. The franchise number will pick up in Q2 and Q3.

We have around on the legacy side around 10 10 10 franchisees planned for the entire year and around five on the lifestyle format. Once the number will pick up as we move ahead.

Your second question was on?

E-commerce.

E-commerce, we have taken a conscious decision of focusing more on the jewellery side and reducing the bars and coins sales there. It's more of a decision by the company to focus on jewellery, both studded and plain gold, on the e-com side.

E-com will see better margins, but may see a little decrease in total sales.

Right. Also, the inventory ratio, we have today is close to 4x, but according to the presentation, it was nearer to 8x, almost 8x two years ago.

What do you think has caused this big dip in inventory ratio?

The ratio was around seven

times, but

hello?

Yeah. Go ahead.

No,

the ratio was around seven. That primarily was when we were doing the refinery sales and there was a lot of B2B sales.

After that, everything has been rationalized. We had also given a guidance of the stock turns stabilizing at around 3.5 to 4, and that is where we are today.

This was as per the guidance given, and after ending the refinery sales and the B2B sales.

Great. That's very helpful.

My last question is on the promoter shareholding. Right now, it's greater than 75%, and it kind of seems to be an overhang on the stock.

Do we have plans to bring it down in the near future?

The plans are there. Definitely, we already have an enabling board resolution to that effect.

We're monitoring the market, and at a suitable time, we'll definitely come up with the QIP to get the shareholding to the desired level.

Great. Thank you so much.

Just one last observation. Recently I was in Ayodhya for the darshan of Shri Ram Mandir, and I saw a hoarding of P N Gadgil Jewellers just right outside the mandir.

The area had very good footfall and excellent visibility. Congratulations on the management on that.

Thank you. We're opening a store soon in Ayodhya.

Also

next time when you go there, you can also see the PNG store there.

Great. Thank you.

Thank you.

Hi. Thanks for the follow-up.

Sorry for the confusion, but I again wanted to ask on gross profit margin only on the YoY basis. Hedging gains are very similar on YoY basis.

Ideally, like you already alluded, we have done a really good job on increasing the retail revenue and the mix of jewellery in the retail, and also reduces the discounts or the off schemes we provides. Ideally, this should have increased our gross margin.

What is the reason the gross margins are flat?

Yash, the hedging gain last year was on a lower base of the retail, and similar hedging gain we have on the bigger base this year. When you put the adjusted margins net of the hedging gains, you will see the bps increase in that.

Yash. You there?

Yes. Basically 20 bps, I understood the base effect, but ideally what my understanding was the margins would have improved more with the mix change.

Got your point on that part.

Basically, these new businesses, or the new territories the share of these new territories in the overall retail mix is round about 3%. The studded ratio might see bigger number there, but to translate into a visible margin gain, this UP and Central India revenue share in the retail mix has to really increase there.

That's where we will have to focus couple of years down the line when UP and Central India becomes a bigger share of our retail margin, you will see the better margin numbers there as compared to that.

Got it. One last question is on the franchise part of the business, not talking about the growth of the stores, but on the revenue growth.

We only have seen 8% revenue growth, while the same in our own stores the growth is higher. Why is such high discrepancy, and how it impacts the economics for a franchise partner?

I'll take the question on the franchise growth being muted at 8% for this year. Franchise, how how generally we do, we do one stock when we do the when we start the franchisee.

That time it is 100% one stock turn happens because we did they pay up, we stock up there, that's a part of the of the sales which we book. Now, the replenishment happens there on a weekly basis and as and when required, and also franchisee also sometimes has to pay up the money and then get the stock.

There could be some timing differences which could come in from when the money is paid and when the stock is completely sold there. Franchisee is is is the books the sales which we record is not B2C, it is B2B.

The the stores might still have an inventory or the stores the the investor has not paid up the money, they might want to pay up a couple of days ahead. Those all mixes happens in franchisee.

Franchisee, apple-to-apple, on a quarter-to-quarter, these differences which will come, but having said that, we understand because franchisee is our focus now, will be becoming big. We have taken access of the the systems from franchisee, and we will be monitoring the B2C environment very closely and the customer demands closely, and you will see the better economics coming from franchisee on the B2C level as well.

This has become our focus now, and we are continue continuous continuously working with the franchisee partners to get access in the B2C data.

Got it. Thanks a lot.

Yeah.

Thanks. Just one question from my end.

We are going good on Maharashtra. Are we seeing any cannibalization signs, particularly in the state?

Also, are we gaining any share from the likes of Kalyan and Tanishq?

Yeah. Ayush, can you repeat the question again, please?

Hello?

Am I audible? Yeah.

In Maharashtra, we are doing good expansion.

Are we seeing any cannibalization

from

the stores, from our stores? No,

our expansion is planned in a very strategic way. Now which area we're expanding, we look at the catchment area, who are the customer base there, and only if it's the catchment area to serve for a new store, we launch a store.

Cannibalization which will impact the existing store and new store is not happening. Some natural cannibalization will definitely be there, but that's always factored in when you enter a new store, that some stores may lose some portion of their sales.

Then does the store also address new customers and be able to still top it up and grow as we move ahead.

Also to add to what Saurabh has said that when we go for the franchisee stores or our own stores in a similar territory, there is an framework and a guidelines which we use, wherein there has to be a particular kilometers apart. These stores has to serve two different catchments and they should not eat up into each other's sales.

That is also a guiding factor and a framework when we choose which location to open the new store or a franchisee store. Ayush, also to the other question I think which you asked was about gaining share from competition.

There's definitely a share which we are trying to gain from competition in Maharashtra. Also, the unorganized segment is something which is moving fast towards organized, and that's why getting a lot of new customers.

Our CRM is actively working on in ensuring that we keep on having a healthy share of new customers, and also being able to dive deeper into our existing set of customers.

Understood, sir. Just one more bit, sir, on our UP expansion.

How has been the initial feedback of our stores?

UP has gone well, on track as per our plans. Where we have been always mentioning during our last couple of calls that we had made some projections for UP in terms of stock turns, in terms of studded mix, I think we are on track for that.

We still haven't finished the year, some stores are only three, four months old. The older stores are also on track, and I think UP expansion looks to be satisfactory, looks to be good.

I think studded which we had projected at 15% is already upwards of 18%, which can still see further growth. I think those markets have accepted the brand well, and that's another reason why we're seeing almost eight to 10 franchisee opening in UP in this financial year.

All right. That's helpful.

Thank you. Thank you.

Thank you everyone for joining today's call and your continued interest in P N Gadgil Jewellers. We appreciate your insightful questions and continued support.

Should you require any additional information, please feel free to reach us at our investor relations partner, Xbillion Advisors. Thank you, and have a wonderful evening ahead.

Thank you.