PN Gadgil Jewellers Targets Rs 9,500 Crore Revenue, 4% PAT Margin In FY26

PN Gadgil Jewellers, one of India’s leading jewellery retailers, is targeting revenue of Rs 9,500 crore in FY26, according to its Chairman and Managing Director, Saurabh Vidyadhar Gadgil.

“Franchisee business should be around 12% of our entire business for the year. We're targeting Rs 9,000-9,500 crore for the year, of which Rs 1,000 crore should come from the franchisee side and franchisee is a net income of around 2.5-3%. We should maintain a PAT (Profit After Tax) margin of 4% throughout the year,” he said during a conversation with NDTV Profit on Wednesday.

PN Gadgil Jewellers has chosen to steer clear of lab-grown diamonds (LGDs) for now due to a lack of consumer demand. The company has a “wait and watch” stance on LGDs.

“There is no demand from the consumers for LGDs. As of now, the natural demand is very strong and consumers are looking at fine jewellery with only natural diamonds,” he said.

He observed that high gold prices have led to a rise in customers exchanging old gold for new jewellery, with such exchanges now accounting for 40-45% of transactions.

“With high gold prices, people are swapping old gold for new jewellery, which is good for us as our margins come from making charges,” he said.

The company is planning a Qualified Institutional Placement (QIP) to dilute promoter holdings from 86% to 75%, as mandated by the Securities and Exchange Board of India (SEBI). Gadgil clarified that the funds raised would primarily flow back into the company to fuel expansion.

“There’s no pressing need for capital, as we’re generating enough cash for growth through internal accruals. The QIP will help spruce up the growth in the coming months,” he noted.

A key factor in the company’s ability to maintain margins despite rising gold prices is its disciplined approach to hedging.

“As a publicly traded company, we have been 100% hedging out. So, hedging has played an important role in ensuring that we don't lose on the gold prices. The cost of materials is a combination of gold prices and diamond prices. As the diamond ratio goes up, the cost of the goods keeps coming down,” the top executive underlined.

Shares of the Maharashtra-based jewellery retailer closed 1.09% lower at Rs 565 apiece.