Nityas Gems & Jewellery Q2 FY27 Results (NSE: NITYAS)
Signal: Margin pressure
The read
Revenue re-accelerated to 743.02 million, up 39.5% YoY versus 20.9% in the prior quarter, but the trajectory is not yet earnings-accretive: gross margin contracted 354bps to 11.8%, EBITDA margin fell 227bps to 10.6%, H1 consolidated PAT declined 15.1% to 71.89 million, and operating cash flow remained negative at 36.47 million.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹74.3 Cr | +39.5% | +74.3% |
| EBIT | ₹6.91 Cr | +11.5% | |
| Net profit | ₹5.05 Cr | +4.4% | |
| EPS | ₹1.18 | -11.3% | |
| EBIT margin | 10.6% |
P&L walk
Consolidated revenue increased 39.5% YoY to 743.02 million and EBITDA rose 14.8% to 78.58 million, but gross margin compressed 354bps to 11.8% as material and inventory-related costs rose faster than sales; PAT increased only 4.4% to 50.48 million with 9.84 million of other income and subsidiary losses weighing on the group.
Segments
The consolidated result is dragged by subsidiaries: Ayaani Diamonds and Jewellery reported revenue of 97.00 million and a quarterly loss of 0.60 million, while Ratna LGD reported nil revenue and a loss of 0.005 million; consequently consolidated PAT of 50.48 million was below standalone PAT of 57.66 million.
Key positives
- Consolidated revenue reached 743.02 million, up 39.5% YoY and 74.3% QoQ, accelerating from 20.9% YoY growth in the preceding quarter.
- Standalone PAT of 57.66 million was 14.2% above consolidated PAT of 50.48 million, showing the parent business remained profitable despite subsidiary losses.
- Consolidated debt-equity ratio improved to 0.24x from 0.32x YoY, while interest service coverage remained 10.92x.
Key concerns
- Gross margin compressed 354bps YoY to 11.8% as cost of materials rose to 81.8% of revenue from 74.9%; the filing does not disclose a driver, and revenue growth did not outpace raw-material cost growth.
- EBITDA grew only 14.8% YoY to 78.58 million versus revenue growth of 39.5%, with EBITDA margin falling 227bps to 10.6%.
- H1 operating cash flow was negative 36.47 million as trade receivables rose to 286.11 million and inventories to 444.93 million.
- H1 consolidated PAT fell 15.1% YoY to 71.89 million despite H1 revenue growth of 32.1%, while current-quarter PAT benefited from other income of 9.84 million versus 1.28 million YoY.
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