PNGS Gargi FJ Q2 FY27 Results (BSE: 543709)
Signal: Margin pressure
The read
The key inflection is operational rather than headline growth: Q2 revenue grew 16.2% YoY to ₹5,399.79 lakh, but EBITDA grew only 8.1% and margin fell 195bps to 26.1% as 30 new outlets added employee and lease costs before producing a sizable revenue impact; the Navratri timing shift provides a near-term reason to watch the subsequent quarter for confirmation of store productivity.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹54 Cr | +16.2% | +78.7% |
| EBIT | ₹13.17 Cr | +4.2% | |
| Net profit | ₹10.72 Cr | +4.3% | |
| EPS | ₹10.24 | +3.6% | |
| EBIT margin | 26.1% |
P&L walk
Standalone Q2FY27 revenue increased 16.2% YoY to ₹5,399.79 lakh, while EBITDA margin contracted 195bps to 26.1% as employee, lease and other operating costs rose with 30 new outlets opened over the past 6–18 months; PAT still grew 4.3% to ₹1,071.96 lakh, helped partly by ₹156.92 lakh of other income.
Key positives
- Revenue increased 16.2% YoY to ₹5,399.79 lakh despite the filing's stated shift of Navratri-related sales into the subsequent quarter.
- Gross margin held broadly stable at 40.6% versus 40.5% YoY, a 13bps expansion despite the operating-cost pressure.
- The distribution footprint reached 54 exclusive brand stores including kiosks, 36 shop-in-shop stores with P. N. Gadgil & Sons and 51 other-entity shop-in-shop stores.
- PPE and CWIP increased alongside depreciation, with PPE at ₹704.23 lakh versus ₹529.92 lakh and CWIP at ₹19.27 lakh versus ₹9.37 lakh.
Key concerns
- EBITDA margin declined 195bps YoY to 26.1% as EBITDA growth of 8.1% lagged revenue growth of 16.2%.
- Management stated that 30 new exclusive brand outlets and sales points opened over the past 6–18 months have increased employee and lease costs but have yet to generate a sizable revenue impact.
- Trade receivables more than doubled to ₹2,977.41 lakh from ₹1,362.97 lakh at March 31, 2026, while inventory rose to ₹7,395.24 lakh from ₹4,824.25 lakh.
- H1FY27 operating cash flow of ₹692.70 lakh was below H1 profit before tax of ₹2,117.49 lakh, with ₹2,570.99 lakh absorbed by inventory and ₹1,614.44 lakh by trade receivables.
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