What is the margin trajectory you see going ahead?

Around 4% operating margin (PAT). EBITDA margin would be around 7.5% to 8%.

Other expenses rose 132% YoY; is it related to the new facility or hedging losses?

No hedging losses; these are indirect expenses to support the 144% top-line growth, in line with the sales trajectory.

We stick to the guidance of 30-40% volume growth, but if demand is strong, nothing is impossible; we will update if needed.

Shanti Gold Q1 FY27 revenue surges 145% YoY to ₹716 Cr; guides 50-60% revenue growth and sustainable 7.5-8% EBITDA margin for FY27

20 Aug 2026 · Analysis by Alpha Inflection

Result quality: watch — Margin pressure. Management sentiment: optimistic.

Q1FY27 Revenue ₹716.38 Cr ( +144.69% YoY ) . New guidance — FY27 fy27 revenue ₹3,500 Cr . New story: Capacity expansion-led growth .

Revenue ₹716.38 Cr +144.69% YoY; EBITDA margin 9.97%; PAT ₹50.48 Cr +46.94% YoY

Shanti Gold Q1 FY27 reported figures
Metric	Value	Change	Basis
Revenue	₹716.38 Cr	+144.69%	yoy · Q1FY27
EBITDA	₹71.45 Cr	+39%	yoy · Q1FY27
EBITDA Margin	9.97%		point_in_time · Q1FY27
PAT	₹50.48 Cr	+46.94%	yoy · Q1FY27
PAT Margin	7.05%		point_in_time · Q1FY27
Sales Volume Growth	61%		yoy · Q1FY27
Debt-Equity Ratio	0.50x		point_in_time · Q1FY27

FY27 revenue target ₹3,500 Cr (value growth 50-60%), volume growth 30-40%, normalized EBITDA margin 7.5-8%

Management guided FY27 revenue target of INR 3,500 crores for [Shanti Gold]. — ₹3,500 crores, FY27
[Shanti Gold] expects sales volume growth of 30% to 40% YoY in FY27 compared to FY26. — 30% to 40%, FY27
[Shanti Gold] expects revenue value growth of 50% to 60% YoY in FY27 over FY26. — 50% to 60%, FY27
Normalized EBITDA margin for FY27 is expected to be around 7.5% to 8%, after adjusting for the ~2-2.5% one-time inventory gain realized in Q1FY27. — 7.5% to 8%, FY27
[Shanti Gold] intends to maintain its debt-to-equity ratio not exceeding 1x going forward, balancing debt and equity for growth. — not more than 1x, going forward
The new [Jaipur manufacturing facility] will be operational by mid-November to December 2026 with a total capex of ₹47 crores. — ₹47 crores, Q3FY27
Proceeds from the [rights issue] of up to INR 100 crores will be fully deployed into gold inventory and working capital requirements. — ₹100 crores completely in gold and working capital, FY27

Capacity expansion and volume-led growth

Capacity expansion-led growth: Management positions the new Marol and upcoming Jaipur facilities as enablers to capture large-scale retailer demand and sustain volume growth.
Product mix shift to studded jewellery: 75% revenue from studded/designer jewellery supports better realisations; focus on higher-value categories to improve margins over time.
Domestic market penetration (North India entry): New client additions in North India expand geographic reach beyond existing markets, contributing to volume growth.
Export opportunity via Dubai gateway: Dubai office awaiting RBI approval to serve as international gateway; management sees huge potential despite current 4% export share.
Working capital discipline and rights issue: Rights issue of ₹100 Cr to strengthen balance sheet and fund inventory build; committed to keeping debt-equity below 1x.
Industry tailwind: organised shift in jewellery retail: Shift from unorganised to organised retail creates structural demand for scalable, reliable jewellery manufacturers.
Bullish gold price outlook: Management remains very bullish on long-term gold prices despite near-term narrow range; fundamentals seen as strong.

Marol manufacturing facility commenced operations in June 2026, adding 4,000 kg capacity and improving flexibility for large-scale retailers
Jaipur facility under construction (50,000 sq ft phase 1, capex ₹47 Cr), expected to be operational November-December 2026
Volume growth of 61% YoY driven by deeper customer engagement, new designs, and addition of new customers in domestic markets
Product mix dominated by studded jewellery (75% cast-studded/designer/Turkish) supporting better realisations; plain gold at 25%
Exports contributed 4% of revenue; Dubai office awaiting RBI approval to serve as gateway for international expansion
Entry into North India market with new client additions, broadening geographic reach beyond existing regions
Rights issue of 46.43 lakh shares aggregating up to ₹100 Cr opened to fund gold inventory and working capital needs
Existing Mumbai facility operating at 75% capacity utilisation

Q. What is the margin trajectory you see going ahead?
Around 4% operating margin (PAT). EBITDA margin would be around 7.5% to 8%.
Q. Other expenses rose 132% YoY; is it related to the new facility or hedging losses?
No hedging losses; these are indirect expenses to support the 144% top-line growth, in line with the sales trajectory.
Q. Can the 60% volume growth seen in Q1 be sustained for the full year?
We stick to the guidance of 30-40% volume growth, but if demand is strong, nothing is impossible; we will update if needed.

Research and educational content only. Not investment advice.