Shanti Gold International Ltd

Key rights issue allotment

• Allotment approved for 46,43,471 fully paid-up equity shares at ₹215 per share (₹205 premium).
• Paid-up equity share capital increases from ₹72,09,60,000 to ₹76,73,94,710.
• New shares rank pari-passu with existing equity shares.
• Corporate actions to credit demat accounts for allottees will be initiated.

Financial Performance

• Revenue from operations: INR716.38 crores in Q1 FY27 vs INR292.78 crores Q1 FY26.
• YoY growth: 144.69%.
• EBITDA: INR71.45 crores; margin 9.97%.
• PAT: INR50.48 crores; PAT margin 7.05%.
• Marol facility commenced operations in Q1 FY27.
• Jaipur facility to strengthen manufacturing footprint; capacity expansion planned.
• Rights issue approved: 46,43,471 equity shares up to INR100 crores.
• Export revenue share: 4% of Q1 revenue.

Operations & Capacity

• Volume growth driver: healthy volumes, new designs, expanding customer base.
• Marol adds capacity and manufacturing flexibility.
• Jaipur facility to further expand footprint and output.
• Product mix rising for higher-value categories: designer and Turkish jewellery.
• Studded jewellery ~75% of revenue; plain gold ~25%.

Balance Sheet & Cash Flow

• Debt-to-equity ratio: 0.50; target below 1.
• Working capital needs expected to rise with expansions.
• Negative cash flow from operations due to stock-on-hand inventory model.

Projects and Capex

• Capex for Jaipur facility: around INR47 crores.
• Jaipur facility expected to be operational by Nov–Dec 2026.
• Marol facility started operations in June 2026.

Outlook & Guidance

• Guidance: INR3,500 crores revenue for FY27; 50%–60% value growth; 30%–40% volume growth.
• EBITDA margin outlook: around 7.5%–8%.
• Inventory unrealized gain of 2%–2.5% boosted this year's EBITDA; exclude going forward.
• If demand strengthens, guidance may be revised upward.

Q&A Highlights

• Margin trajectory: around 4% operating margin; EBITDA 7.5%–8%.
• Volume growth driven by ~61%–62% volume; rest from price (gold).
• Rights issue funds growth; post-rights issue capital around INR7.67 crores.
• Marol as growth enabler; Dubai office to expand international footprint.
• Longer-term growth path: 40%–50% value growth, 30%–40% volume growth over next years.
• Jaipur facility to scale up; capacity to meet demand; 50,000 sq ft phase one.

Risks & Watchpoints

• Working capital will rise with expansion; stock-heavy model weighs on cash flow.
• Debt level managed to stay below 1x; further capex increases needs.
• Export expansion contingent on offshore approvals and market conditions.

Meeting Details

• Date and time: August 14, 2026 at 02:30 P.M. IST.
• Mode: virtual audio conference call (audio link on company website).

Participants

• Key company participant: Company Secretary & Compliance Officer.

Purpose

• Earnings discussion for Q1FY27 (quarter ended June 30, 2026).

Additional Notes

• Audio link of the earnings call is available on the company website.

Business overview

• Gold jewellery manufacturer with integrated design to BIS hallmarking.
• Pan-India footprint across 15 states and 2 UTs; 4 international markets.
• Capacity expansion: Marol adds 4,000 kg; Jaipur adds 1,200 kg.
• Turkish jewellery line and machine-made plain gold jewellery expansion.

Operational highlights

• Q1 FY27 revenue from operations ₹716.38 Cr; YoY growth 144.7%.
• Q1 FY27 EBITDA ₹71.45 Cr; margin 9.97%.
• Q1 FY27 PAT ₹50.48 Cr; margin 7.05%.
• Marol facility commissioned June 2026; adds 4,000 kg pa.
• LOIs secured for Jaipur expansion; expanding pan-India and export footprint.

Financial performance

• FY26 revenue ₹2,018.71 Cr; EBITDA ₹199.00 Cr; PAT ₹140.15 Cr.
• FY26 EBITDA margin 9.86%; PAT margin 6.94%.

Capital structure & liquidity

• Total equity ₹598.39 Cr; increase via other equity.
• Long-term borrowings ₹198.33 Cr; deleveraging vs FY25.
• Cash & bank balances ₹47.57 Cr; cash equivalents ₹1.61 Cr.
• Total assets ₹856.47 Cr; current liabilities ₹235.51 Cr.

Strategic priorities & outlook

• Capacity expansion to 7,900 kg pa post Jaipur expansion.
• Launch of high-volume machine-made plain gold line.
• North India expansion as distribution hub.
• Strengthen export presence in USA and UAE.

Governance & leadership

• Pankajkumar H Jagawat: Chairman and MD; 21+ years in jewellery.
• Shashank Bhawarlal Jagawat: Non-Executive Director; promoter founder.
• Independent Directors: Bhavika Ghuntla; Yash Mahansaria; Purvi Shah.
• CFO Shriram Kannan Iyengar since June 17, 2024.
• Company Secretary & Compliance Officer: Vrushti Shah since June 17, 2024.

Financial highlights

• Revenue from operations for Q1 FY27: Rs 716.38 crore, up 144.7% YoY.
• EBITDA (excl OI) for Q1 FY27: Rs 71.45 crore, up 39.0% YoY.
• PAT for Q1 FY27: Rs 50.48 crore, up 46.9% YoY.
• EBITDA margin: 9.97% for Q1 FY27.
• PAT margin: 7.05% for Q1 FY27.
• Quarterly volume growth: 61.6% YoY.

Operational highlights

• Capacity expansion completed; Marol, Andheri facility now fully operational.
• Adds approximately 4,000 kg per annum capacity.

Capital action

• Board approves Rights Issue: 46,43,471 equity shares, up to Rs 99.83 crore.
• Rights issue proceeds to support growth initiatives.

Issue overview

• Public issue of equity shares.
• Issue size: 360.11 crore; net proceeds not disclosed; no revision/undersubscription noted.
• Main objectives: Jaipur facility capex; working capital; debt repayment; general corporate purposes; issue expenses.

Utilisation of proceeds

• Jaipur capex: utilisation delayed beyond March 2026; ongoing interior fit-out and design changes.
• Working capital: over-utilised by 1.08 crore; excess funded from unutilised GCP and issue expenses.
• Debt repayment: fully utilised.
• GCP: 0.01 crore un utilised; 0.01 and 1.07 reallocated to working capital.
• Issue expenses: 49.73 used of 50.80; 1.07 reallocated to working capital.
• Unutilised funds: 38.99 crore unutilised; parked in fixed deposits.
• Unutilised IPO deployment: funds invested in fixed deposits with Yes Bank; maturities Aug 2026–Jan 2027.

Governance and compliance

• Approvals: Not applicable; no statutory approvals required for the objects.
• Material events: none reported; no information affecting viability.
• Audit Committee: report reviewed Aug 13, 2026; no adverse comments.

GCP

• GCP utilisation: fully utilized by Dec 2025; board approval for allocation not stated.

Key disclosures

• Unaudited standalone and consolidated results for quarter ended June 30, 2026 were approved.
• Limited Review Reports by J. Kala & Associates were taken on record.
• Dubai subsidiary Shanti Gold Jewellery LLC was incorporated on May 13, 2026 and consolidated.
• First-time consolidation includes the subsidiary; prior period comparatives are not presented.
• Company operates as a single segment: wholesale and manufacture of gold ornaments.

Meeting Details

• Date and time: 14 August 2026, 02:30 PM–03:30 PM IST.
• Type and mode: Group earnings call; virtual conference call.
• Event: Earnings Call Invite for Q1 FY27 by Shanti Gold International Ltd.
• Purpose: Discuss Q1 FY27 unaudited results.

Participants

• Management: Chairman & Managing Director; Chief Financial Officer.