The numbers are in, and they aren't exactly what the market wanted to see. PN Gadgil Jewellers shares closed 1.38% down at ₹588.80 on Thursday, marking a nearly 3% slide year-to-date. Investors are digesting a mixed bag: top-line growth is solid, but the composition of that growth tells a story of strategic retreat in some areas and aggressive push in others.
Revenue climbed 22.4% year-on-year, but the engine under the hood was retail. That segment, accounting for 77.3% of total sales, jumped 31.1% YoY. Same-store sales growth hit 25.5%, a strong signal that existing footfall is converting. Franchise units also chugged along, up 34.7% YoY. Then there’s the elephant in the room: e-commerce revenue collapsed by 83.6% YoY. The company attributes this to a "strategic recalibration" of product mix. Whether that’s a correction or a retreat is a debate for the earnings call, but the drop is stark.
Festive demand clearly did the heavy lifting. Raksha Bandhan sales saw pieces sold jump 114% and value rise 142% compared to last year. Across categories, gold led with 23.5% growth, followed by diamonds at 21% and silver at 12%. The studded jewellery ratio improved to 11.8% from 9% a year ago, suggesting a shift toward higher-margin, value-added products.
Expansion remains the long-term play. The company ended the quarter with 80 stores and is eyeing 103 by the end of FY27. That means adding roughly 23 new locations over the next two quarters, a pace that implies accelerating rollouts. The strategy is franchise-led, leveraging both Legacy and YOOU formats. With the stock down 3% YTD, the market may be waiting for the e-commerce numbers to stabilize before cheering the retail growth.