The September quarter delivered a clear signal of operational leverage. Net profit after tax climbed 14.9% sequentially to ₹121 crore, up from ₹105.3 crore in the June quarter. Revenue followed suit, rising 10.5% to ₹2,666.3 crore. EBITDA expanded to ₹207.3 crore, pushing the margin up to 7.7% from 7.56% in the prior period. The numbers suggest the company is successfully converting top-line growth into bottom-line gains, a critical metric for jewellers navigating volatile metal prices.
Retail is no longer just a channel; it is the engine. In Q2 FY27, retail contributed 77% of total revenue, a significant leap from 72% in the same quarter last year. Same-store sales growth stood at 25.5% year-on-year. This shift indicates a structural change in consumer behavior, with footfall and basket size both contributing to the rise. The mix is also improving. The retail stud ratio—studded jewellery as a percentage of sales—jumped to 11.8% from 9% a year ago. In the Northern and Central regions, this figure hit 17.4%.
Category performance tells a nuanced story. Diamond jewellery sales grew 21% in value and 11% in volume year-on-year. Gold jewellery saw value rise 47% while volume increased 4%, likely driven by higher gold prices. Conversely, gold bars and coins saw a 24% drop in value and a 48% fall in volume. Silver sales rose 12% in value, though volumes fell 42%. The data suggests investors and consumers are favoring jewelry over bullion for now, a trend that benefits retail-heavy players like PNG.
Geographic expansion remains the long-term play. Retail revenue from Northern and Central India increased to 2.7% of total revenue in Q2 FY27, up from 0.7% in the year-ago quarter. Saurabh Gadgil, chairman and managing director, stated that the improvement in the stud ratio in these regions reinforces the company's confidence in its expansion strategy. Most planned store additions for FY27 are scheduled for the second half of the financial year. The company also acquired the sterling silver fashion brand Silvostyle on October 1, 2026, adding to its portfolio. As of September 30, 2026, PNG operated 80 stores, including one in the US.
The market responded positively. Shares of P N Gadgil Jewellers ended at ₹587 on the BSE on October 29, up 2.63% or ₹15.05. With the second half of the financial year typically being stronger for jewellers due to festive season demand, the company is well-positioned. The focus now shifts to execution: can PNG maintain this retail momentum while integrating new acquisitions and expanding in under-penetrated regions? The next few quarters will test the sustainability of this growth trajectory.