SHANTIGOLD - Shanti Gold

📊 NSE: SHANTIGOLD 🏢 Gems, Jewellery And Watches 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company reported a 61.6% YoY growth in total revenue for Q2 FY26, reaching INR 430 crores compared to INR 266 crores in Q2 FY25. H1 FY26 revenue grew 42.8% YoY to INR 722.85 crores from INR 505.9 crores. While specific segment percentages aren't split, the bridal collection is identified as the primary driver for high-margin growth.

Geographic Revenue Split

Domestic India remains the primary market, but the company is expanding into international markets including the USA and UAE to build brand recognition. Specific percentage splits per region are not disclosed in available documents.

Profitability Margins

Net Profit Margin (PAT) improved significantly to 10.19% in Q2 FY26 from 3.46% in Q2 FY25. For H1 FY26, PAT margin stood at 9.47% compared to 3.15% in H1 FY25, an improvement of 587 basis points. This was driven by lower inventory cost bases and a rally in gold prices.

EBITDA Margin

EBITDA margin for Q2 FY26 was 14.75%, a 740 basis point increase from 7.24% in Q2 FY25. H1 FY26 EBITDA margin stood at 14.23%, up 708 basis points YoY. The margin expansion is attributed to the high-premium bridal collection and inventory markup gains of 7-8%.

Capital Expenditure

The company is planning a new manufacturing facility in Jaipur to expand capacity. Historical tangible net worth increased from INR 72.43 crores in FY23 to INR 105.73 crores in FY24, reflecting reinvestment of profits.

Credit Rating & Borrowing

The company holds an IVR BBB/Stable rating for long-term bank facilities (INR 86.12 Cr) and IVR A3+ for short-term facilities (INR 50.00 Cr). Blended cost of interest ranges between 8.3% and 8.4%.

⚙️ Operational Drivers

Raw Materials

Gold (primarily 22KT) and CZ (Cubic Zirconia) studded stones are the primary raw materials. Gold constitutes the bulk of the input cost, though specific percentage of total cost is not disclosed.

Capacity Expansion

Current gold manufacturing capacity is 3,000 Kg per annum. The company is actively pursuing capacity expansion through a new facility in Jaipur and has recently listed to fuel growth toward a target of INR 1,900 crores in sales by March 2026.

Raw Material Costs

Raw material costs are managed through a 'natural hedging' strategy. In Q2 FY26, profitability was boosted by a low inventory cost base procured during the IPO period, allowing the company to capture gains from the upward gold rally.

Manufacturing Efficiency

The company focuses on design complexity and finesse in 22KT CZ studded jewellery, which allows for higher value-add compared to plain gold jewellery.

Logistics & Distribution

The company utilizes trade exhibitions and partnerships to distribute products globally, particularly in the USA and UAE.

📈 Strategic Growth

Expected Growth Rate

47.6%

Growth Strategy

The company aims to reach INR 1,900 crores in revenue by March 2026 by expanding manufacturing capacity in Jaipur, increasing geographical reach in the USA and UAE, and aggressively marketing through a newly appointed Pan-India marketing head. The strategy focuses on high-margin bridal collections and 22KT CZ studded jewellery.

Products & Services

22KT CZ studded gold jewellery, bridal jewellery collections, and aesthetic designer gold pieces.

Brand Portfolio

Shanti Gold International Limited (SGIL).

New Products/Services

Continuous rollout of new designs every month, with a specific focus on expanding the premium bridal collection which commands higher EBITDA margins.

Market Expansion

Targeting Pan-India market expansion and international presence in the UAE and USA through trade exhibitions and strategic partnerships.

Market Share & Ranking

Identified as one of the largest manufacturers of CZ studded gold jewellery in India.

Strategic Alliances

Maintains long-standing relationships with marquee customers such as Joyalukkas India Limited and Lalithaa Jewellery Mart (P) Ltd.

🌍 External Factors

Industry Trends

The industry is shifting toward branded jewellery and organized players. The market is currently growing, driven by weddings and festivals, with Shanti Gold positioning itself as a high-design, high-finesse manufacturer to capture this shift.

Competitive Landscape

Faces intense competition from both organized national brands and fragmented unorganized local players who dominate regional markets.

Competitive Moat

The moat is built on design complexity, craftsmanship, and a 20+ year track record. This is sustainable because high-end bridal designs are difficult for unorganized players to replicate with the same finesse and 22KT quality.

Macro Economic Sensitivity

Highly sensitive to gold price fluctuations and consumer disposable income trends in India, which drive wedding-related jewellery demand.

Consumer Behavior

Increasing preference for branded and hallmarked jewellery over unorganized local sources, especially in the 22KT CZ segment.

Geopolitical Risks

Trade barriers or changes in international gold trading policies could affect the expansion into UAE and USA markets.

⚖️ Regulatory & Governance

Industry Regulations

Operations are susceptible to government policies on gold imports, hallmarking mandates, and regulatory changes in the jewellery sector which have been frequent in India.

Taxation Policy Impact

Subject to Indian corporate tax rates; specific fiscal impacts not detailed beyond standard compliance.

Legal Contingencies

No specific pending court cases or case values were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Volatility in gold and diamond prices poses a significant risk to margins. Regulatory changes in India regarding gold trading could impact operations by up to 5-10% of profitability.