P N Gadgil Jewellers Limited Q2 FY26 Concall Decoded: – Gold at ₹1 lakh, volumes still partying

1. Opening Hook

Gold prices went up 50% YoY, inflation scared everyone, and yet Indians showed up to buy jewellery like nothing happened.
If economics textbooks are crying somewhere, PNG Jewellers is busy counting cash.

Q2 FY26 was supposed to be the quarter where high gold prices cool demand. Instead, Navratri rang the cash register nonstop, stores popped up outside Maharashtra, and management casually dropped ₹1,800 crore October sales like it was a side note.

Margins expanded, profits doubled, and customers didn’t blink at gold prices flirting with six digits. Apparently, weddings don’t wait for macro corrections.

If you thought jewellery demand would crack under gold inflation, this concall politely laughs at you.
Read on—because the real sparkle appears once numbers, expansion ambition, and margin swagger collide.

2. At a Glance

Revenue ₹2,178 Cr (+~37%) – Gold price inflation did the heavy lifting, demand happily followed.
Gross Margin 11.9% (+510 bps) – Studded jewellery finally earned its keep.
EBITDA ₹143 Cr (+117%) – Operating leverage woke up aggressively.
PAT ₹79 Cr (+127%) – Profits didn’t just grow, they flexed.
63 stores (+8 this quarter) – Maharashtra packed, India unlocked.

3. Management’s Key Commentary

“Gold prices rose over 50% YoY, yet consumer sentiment remained strong.”
(Translation: Indians don’t buy gold, they emotionally commit to it 😏)

“Navratri sales hit ₹428 crores, up 66% YoY.”
(Festivals = quarterly cheat codes 🪔)

“We entered MP and UP as part of our expansion beyond western India.”
(Maharashtra saturation acknowledged, quietly executed)

“EBITDA grew 101% YoY with margin expansion.”
(Operating leverage finally paying rent)

“Studded jewellery ratio increased to 9%.”
(Diamonds slowly stealing the spotlight 💎)

“October sales crossed ₹1,800 crores.”
(One month did more than some full years)

“We plan to reach 78–80 stores by March 2026.”
(Expansion with a spreadsheet, not bravado)

4. Numbers Decoded

Source table

Metric	Q2 FY26	What It Really Means
Revenue	₹2,178 Cr	Volume + gold inflation party
Gross Margin	11.9%	Studs doing heavy lifting
EBITDA Margin	6.6%	Retail efficiency improving
PAT Margin	3.6%	Post-refinery, clean margins
Retail EBITDA	9.1%	Core business is solid
E-commerce Growth	+113%	Digital finally sparkles
Franchise Growth	+105%	Asset-light scaling working

One-liner: Margins expanded despite expansion—rare, respectable, and repeatable (for now).

5. Analyst Questions (Decoded)

Q: Will high gold prices hurt volumes?
A: No. Old gold exchange + weddings = volume

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