PNGJL - P N Gadgil Jewe.

📊 NSE: PNGJL 🏢 Diamond Cutting / Jewellery 📅 Last Updated: 12/14/2025 10:50

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 26% YoY to INR 7,693.5 Cr in FY25. The Retail segment (72.2% of sales) grew 29% YoY, while the Franchise and E-commerce segments grew 55% and 131% respectively.

Geographic Revenue Split

High geographic concentration with 54 out of 55 stores located in Maharashtra and Goa as of June 2025, though the company is now expanding into Madhya Pradesh, Uttar Pradesh, and Bihar.

Profitability Margins

Gross margin improved from 8.4% in FY24 to 9.1% in FY25, further expanding to 11.9% in Q2 FY26 (up 510 bps). Net profit margin rose to 3.6% in Q2 FY26, a 190 bps increase YoY.

EBITDA Margin

EBITDA margin stood at 4.8% in FY25 (up 20 bps) and improved significantly to 6.6% in Q2 FY26 (up 327 bps) driven by a higher share of studded jewellery and the discontinuation of low-margin refinery sales.

Capital Expenditure

Utilized INR 850 Cr from IPO proceeds in September 2024 to fund the addition of 17 stores in FY25; planned addition of 25 stores in FY26 (15 company-owned) to be funded by debt and internal accruals.

Credit Rating & Borrowing

CRISIL A/Positive rating; interest coverage ratio improved to 9.3x in FY25 from 5.9x in FY24 following the repayment of high-cost debt using IPO proceeds.

⚙️ Operational Drivers

Raw Materials

Gold, Silver, Diamonds, and Precious stones; gold inventory is the primary cost component, though specific percentage of total cost is not disclosed.

Import Sources

Sourced primarily through Gold Metal Loans (GML) which stood at INR 485 Cr as of March 31, 2025, backed by fixed deposits.

Capacity Expansion

Current retail footprint of 55 stores as of June 2025; planned expansion to add 25 new stores in FY26 to increase market reach outside Maharashtra.

Raw Material Costs

Gross profit rose 91% YoY to INR 258.1 Cr in Q2 FY26, reflecting a shift toward higher-margin studded jewellery and better procurement strategies.

Manufacturing Efficiency

Discontinued low-margin gold sales from the refinery segment in H2 FY25 to focus on high-margin retail operations, expected to boost medium-term margins to 5-6%.

📈 Strategic Growth

Expected Growth Rate

26%

Growth Strategy

Aggressive retail expansion with 25 new stores planned for FY26, diversification into North Indian markets (MP, UP, Bihar), and increasing the sales mix of high-margin studded and diamond jewellery.

Products & Services

Gold, silver, and diamond jewellery, platinum jewellery, and specialized 'Colourstone' and lightweight lifestyle jewellery collections.

Brand Portfolio

P N Gadgil Jewellers (PNG).

New Products/Services

Expansion of 'lifestyle stores' catering to lightweight jewellery and increased focus on the 'Studded' category to drive margin expansion.

Market Expansion

Expanding beyond the core Maharashtra/Goa market into Indore (opened August 2025), Uttar Pradesh, and Bihar to reduce regional concentration.

Market Share & Ranking

Second largest organized jewellery retailer in Maharashtra.

🌍 External Factors

Industry Trends

The industry is seeing a rapid shift from unorganized to organized retail, with a growing consumer preference for branded jewellery and studded products.

Competitive Landscape

Faces stiff competition from unorganized players who dominate regional pockets and national organized players expanding in Tier II and Tier III cities.

Competitive Moat

Durable brand legacy dating back to 1832 provides strong trust and customer loyalty in Western India, which is difficult for new entrants to replicate.

Macro Economic Sensitivity

Highly sensitive to global gold price volatility and domestic inflation affecting consumer discretionary spending.

Consumer Behavior

Shift toward lightweight jewellery for daily wear and increasing demand for diamond-studded items for investment and fashion.

Geopolitical Risks

Global geopolitical tensions impacting gold prices and supply chain stability for precious stones.

⚖️ Regulatory & Governance

Industry Regulations

Operations are impacted by Hallmarking mandates, PAN requirements for high-value sales, and fluctuations in gold import duties (cut to 6% in July 2024).