PNGS Reva Diamo. Q2 FY27 Earnings Call — Analysis (NSE: PNGSREVA)
PNGS Reva posted 17% YoY revenue growth (46% excluding gold scrap) to ₹121 Cr with PAT up 84% to ₹23 Cr, while accelerating COCO EBO expansion targeting 15 stores within 24 months.
Result quality: strong — Margin expansion. Management sentiment: optimistic.
The take
Q2FY27 Revenue from Operations ₹121 Cr ( +17% YoY ) . Guidance cut — FY27 fy27 h2 revenue growth 40% to 45% . New story: Disciplined COCO store rollout .
Results
Q2FY27 revenue grew 17% YoY to ₹121 Cr (46% YoY excluding gold scrap sale), EBITDA expanded 49% YoY to ₹29 Cr (23.8% margin), and PAT surged 84% YoY to ₹23 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹121 Cr | +17% | yoy · Q2FY27 · reported headline |
| Gross Profit | ₹37 Cr | +50% | yoy · Q2FY27 |
| Gross Margin | 31.1% | +690bps | yoy · Q2FY27 · vs 24.2% in Q2FY26 |
| EBITDA | ₹29 Cr | +49% | yoy · Q2FY27 |
| EBITDA Margin | 23.8% | +510bps | yoy · Q2FY27 · vs 18.7% in Q2FY26 |
| PAT | ₹23 Cr | +84% | yoy · Q2FY27 |
| PAT Margin | 19.3% | none · Q2FY27 · Q2FY27 margin | |
| H1 Revenue (excl. gold sale) | ₹239 Cr | +76% | yoy · H1FY27 · jewellery sales |
| H1 EBITDA | ₹63 Cr | +103% | yoy · H1FY27 |
| H1 EBITDA Margin | 26.3% | +670bps | yoy · H1FY27 · vs 19.6% in H1FY26 |
| H1 PAT | ₹51 Cr | +151% | yoy · H1FY27 |
Guidance
Management expects ~40-45% full-year growth, plans to add at least 3 more EBOs in H2FY27 to reach 15 EBOs ahead of the 24-month IPO timeline, and projects SIS SSG growth of 35-40%.
What management committed to
- FY27 H2 revenue growth will be around 40 to 45 percent year-on-year. — 40% to 45%, FY27
- SIS stores will achieve at least 35% to 40% like-for-like SSG growth in H2 FY27. — 35% to 40%, FY27
- At least 3 additional company-owned [EBO] stores will be added in H2 FY27. — at least 3, FY27
- EBO stores will achieve a stock turn of 0.75% within 15 to 18 months of opening, scaling to 1.25% within 3 to 4 years. — 0.75% and 1.25%, 15 to 18 months and 3 to 4 years from EBO opening
- FY27 H1 and H2 revenue split will be around 45-55 or 50-50. — 45-55 or 50-50, FY27
- In 7 to 8 years, PNGS Reva will operate at least 50 [EBO] stores. — 50, FY34-FY35
Key themes
Retail network expansion and studded jewellery mix shift
How the narrative shifted
- Disciplined COCO store rollout: Timeline for the 15-store program was extended to 18-20 months, shifting the narrative from speed of rollout to quality of execution and quantified milestones.
- Surging natural diamond demand: Bolstered by a discussion of consumer preference for natural diamonds over lab-grown for design jewellery and resale value.
- Economies of scale driving margin expansion: The 90% H1 gross profit growth and 103% H1 EBITDA growth are held up as direct proof that scale is translating into higher margins, with EBITDA margin improving to 26.3%.
- Festive-led seasonality in revenue: Management actively walked back the implied H2 guidance from 'same as H1' (76% growth) to a cautious 40-45% growth, fundamentally altering the seasonality narrative from a predictable structural pattern to a variable one dependent on macro conditions.
Operational commentary
- Expanded EBO footprint to 6 operational stores, including Hadapsar (Amanora Mall, Pune), Nashik, Jaipur (first store outside Maharashtra), and Bavdhan.
- Onboarded actress Sharvari Wagh as Pan-India brand ambassador to support regional and North India store expansion.
- Launched digital e-commerce platform revadiamonds.com to enhance catalogue visibility and drive showroom footfall.
- Over 95% of current revenue continues to originate from Shop-in-Shop (SIS) formats inside P.N. Gadgil & Sons stores.
- Product mix is highly oriented toward natural diamond design jewellery (~95% of sales) with solitaire/larger stones accounting for only 4-5%.
Analyst Q&A
Q. Expected SSG growth for SIS stores and contribution timelines for EBOs.
SIS stores are targeted to deliver 35-40% SSG. EBOs require 15-18 months of gestation and upfront marketing costs before generating profitable, meaningful contributions starting from Q4FY28.
Q. Store economics, inventory requirements, and capex across store sizes.
Capex is ₹2-2.5 Cr per store for fit-outs and initial marketing, with inventory requiring ₹10-12 Cr (1,000 sq ft), ₹12-15 Cr (1,200 sq ft), or ₹15-18 Cr (1,500 sq ft). Fit-out spend is expensed to P&L per IndAS.
Q. Threat of lab-grown diamonds (LGD) and potential plans to enter the LGD segment.
Over 95% of product mix relies on smaller star-melee natural diamonds in intricate designs where LGD poses minimal competition, and Reva offers a 90% buyback on natural diamonds. Management has no current plans to enter LGD.
Q. Whether H2FY27 will maintain the traditional 65% revenue skew.
Management expressed caution due to the absence of Gudi Padwa in H2, severe drought across >85% of Maharashtra, and geopolitical inflation risks, projecting full-year growth closer to 40-45% with a 50-50 or 45-55 H1/H2 distribution.
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