PN Gadgil Jewellers Ltd said elevated gold prices and a sharp rise in investment-led purchases of gold bars and coins impacted its consolidated gross margins in the March quarter, even as the company crossed the ₹10,000 crore revenue milestone and maintained its FY27 growth guidance.
The current market environment led consumers to shift from discretionary jewellery purchases towards investment-oriented gold buying, particularly in Q4, said Chairman and Managing Director Saurabh Gadgil during an earnings call.
The company’s consolidated gross margins declined by 2.3%, primarily due to a higher contribution from gold bars and coins, whose share in overall revenue mix rose to 40% from 28% a year earlier. In value terms, sales of gold bars and coins increased sharply from ₹450 crore to ₹1,400 crore.
“As this segment operates on a structurally very thin spread, the elevated contribution compressed the consolidated gross margins due to consumer shift of gold from consumption to gold for investment in Q4 FY26,” Gadgil said.
The retail jeweller clarified that all gold bar and coin sales during the quarter were purely business-to-consumer transactions and not linked to refinery or business-to-business activity.
Margins were also impacted by a decline in studded jewellery sales and higher promotional spending during the quarter.
Gadgil said the studded jewellery mix fell by around 1% in Q4 due to Foundation Day and Gratitude Day offers, which involved heavy discounting on making charges.
In addition, marketing promotions and trade discounts related to Gudi Padwa, Foundation Day and Gratitude Day exceeded ₹50 crore during the quarter, further affecting profitability.
Despite the near-term pressure, the company maintained its annual profitability targets.
Gadgil said the company was still able to sustain around 12% gross margins and a profit-after-tax margin of 3.75%-4% on a full-year basis.
Chief Financial Officer Deepak Vijay said the company crossed the ₹10,000 crore consolidated revenue milestone during FY26, with revenue reaching ₹10,739 crore. Gross profit rose 83% to ₹1,302 crore, while gross margin expanded by 280 basis points to 12%.
Store expansion and geographical diversification continued to remain a key growth driver. During Q4 FY26, the company added 12 stores, including eight company-owned and four franchise-operated outlets, taking the total network to 78 stores as of March 31, 2026.
For the full year, PNG Jewellers added 25 stores, strengthening its position among the country’s fast-growing organised jewellery retailers.
On the outlook, he said it continues to maintain FY27 guidance of ₹13,500 crore revenue, EBITDA margin of 7%-7.5% and PAT margin of around 4%, despite continuing uncertainty in the broader market environment.