PNGS Gargi Fashion Jewellery Ltd

Business Overview

• Fashion jewellery brand spun out of P. N. Gadgil & Sons; youth-focused affordable offerings.
• Asset-light expansion with franchisees and SIS partnerships.

Operational Highlights

• Q1FY27 net revenue Rs 302.2 Mn, up 10.6% YoY.
• EBO sales grew 186% YoY in Q1FY27.
• 135 points of sale across India; 9 new additions in Q1FY27.
• Expanded product mix with 14KT diamonds and 9KT plain gold lines.

Financial Performance

• Q1FY27 gross margin 42.2%; EBITDA 59.7 Mn; PAT 50.5 Mn.
• FY26 net revenue Rs 1494.0 Mn; EBITDA 396.3 Mn; PAT 313.3 Mn; PAT margin 21%.
• FY23-FY26 revenue CAGR 73.4%.
• Debt-free balance sheet; no long/short-term borrowings.
• Maharashtra revenue Rs 133 Cr; Other states Rs 16 Cr FY26.
• Cash balance Rs 727.5 Mn as of Mar-26.

Capital Structure & Liquidity

• FOFO/FOCO asset-light expansion; franchisee-funded inventory; capex ~ Rs 50 lakh per store.
• 2023 preferential issue Rs 10 Cr to accelerate growth.

Strategic Priorities & Outlook

• Target 20+ new POS annually; ~35% revenue CAGR.
• Pan-India expansion after Maharashtra; focus on South India (Hyderabad, Bengaluru).
• Premiumization via 14KT diamonds and Utsaav bridal range.
• Integrated omnichannel presence across EBOs, SIS, and online.

Risks & Mitigation

• Industry shift to organized retail; regulatory framework including hallmarking and export norms.
• Omnichannel strategy and asset-light model mitigate working-capital and distribution risk.

Governance & Leadership

• Promoter Govind Vishwanath Gadgil (Chairman) leads PNGS Gargi.
• Amit Modak and Aditya Modak on leadership team.
• SME-listed with quarterly disclosures and investor concalls.

Fund-raising status

• Mode of fund raising: Preferential issue
• Date of raising funds: 26-Aug-2025
• Amount raised: Rs 1091.25 Lakhs
• Monitoring agency: Not applicable
• Deviation in use of funds: No deviation
• Audit Committee comments: Nil; report approved
• Original object: Marketing and promotional expenses
• Funds utilised: Rs 640.20 Lakhs; balance unutilised
• Status of fund utilisation: Partly utilised

Financial highlights

• Revenue from operations: ₹3,021.62 lakhs in Q1 ended Jun 30, 2026.
• Total income: ₹3,209.70 lakhs.
• Profit before tax: ₹678.59 lakhs.
• Profit after tax: ₹504.96 lakhs.
• EPS (basic and diluted): ₹4.82.
• Purchases of stock-in-trade: ₹2,455.97 lakhs.
• Changes in inventories: −₹709.57 lakhs.
• Finance cost: ₹31.28 lakhs.
• Depreciation: ₹75.25 lakhs.
• Other expenses: ₹574.58 lakhs.
• Total expenses: ₹2,531.11 lakhs.
• YoY: revenue +11%, total income +13%, PAT −5%, EPS −6%.
• SIS/EBO store network: 36 SIS with PN Gadgil & Sons, 54 other SIS, 48 EBO including Kiosk.
• Paid-up capital: ₹1,047.03 lakhs; weighted average shares: 1,04,70,303.
• Standalone unaudited results; reviewed by Audit Committee.

Capital deployment & operations

• Utilised preferential issue proceeds: ₹640.20 lakhs for pan-India marketing expansion.
• Advance tax for FY2026-27 paid till Jun 2026: ₹75 lakhs.
• One operating segment: trading in fashion/jewellery; no separate segment disclosures.

Outlook & governance

• West Asia disturbances imply slower spending; long-term demand remains intact.
• Expansion guidance remains in place; pan-India marketing ongoing.

Store opening

• New exclusive brand store opened at UG-44B, Uppar Ground Floor, Zora Mall, Raipur.
• Location: Multiplex Shopping Mall Condominium, Opp. Agriculture College, NH6, Jora, Banarsi, Raipur 492012.
• Opening date: July 18, 2026.

Store opening

• Opened new exclusive brand store at Lulu Mall, Bengaluru, effective July 18, 2026.

Q1FY27 Highlights

• Total Revenue from Operations: Rs 3,048 lakh, up 11.61% YoY.
• Festive Akshaya Tritiya revenue: Rs 237 lakh vs Rs 133 lakh prior year.
• EBO sales rose to Rs 690 lakh in Q1FY27 from Rs 241 lakh.
• SIS channel dependence is being gradually reduced; EBO focus ongoing.
• Retail network across 135 POS in 60 cities, 19 states.
• Outlook: demand expected to improve in Q3FY27 and Q4FY27 with wedding season.
• Portfolio includes 925 sterling silver, 14KT diamond, and 9KT plain gold jewellery.
• Revenue is subject to limited review by statutory auditors.

Summary

• Regulation 74(5) not applicable to rematerialisation requests in the reporting period.