PNGS Reva Diamo. Q1 FY27 Results (NSE: PNGSREVA)
Signal: Margin expansion
The read
Q1FY27 delivered a second consecutive quarter of >100% YoY revenue growth (+119.5%), driven by diamond studded jewellery. The standout is gross margin expansion of 1,258 bps YoY to 35.6%, propelling EBITDA margin to 29.84% (+1,173 bps). PAT of ₹27.21 Cr (+265% YoY) was boosted by other income (₹5.58 Cr from IPO proceeds in FDs). However, sequentially revenue declined 14.6% from Q4FY26 (₹138.13 Cr), a normal seasonal dip post-Diwali/wedding season, and gross margin contracted 90 bps QoQ. EPS dilution from IPO remains a concern (PAT up 265% vs EPS up 152%). The company added one net store in Q1 (37 total vs 36 as of March 2026), tracking towards the ~15 new COCO stores target.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹117.97 Cr | 119.49% | -14.59% |
| EBIT | ₹36.4 Cr | 269.66% | |
| Net profit | ₹27.21 Cr | 265.30% | |
| EPS | ₹8.58 | 151.61% | |
| EBIT margin | 29.84% |
P&L walk
Revenue grew 119.5% YoY to ₹117.97 Cr, driven entirely by diamond studded jewellery (+122.4% YoY to ₹115.99 Cr). Gross margin surged 1,258 bps YoY to 35.6%, as raw material cost (purchases net of inventory change) fell to 64.4% of revenue vs 77.0% a year ago; the driver is mix shift towards higher-margin diamond studded jewellery and possible pricing power, though not explicitly disclosed. EBITDA (proxied by operating line before finance cost, depreciation, and tax) grew 269.7% YoY vs revenue +119.5%, yielding 1,173 bps EBITDA margin expansion to 29.84%. Finance cost grew 38.4% YoY to ₹2.75 Cr, but as % of revenue it fell from 3.69% to 2.33%. Depreciation jumped from ₹0.04 Cr to ₹0.36 Cr (+840%), reflecting fresh capex on IPO-funded store expansion. PAT at ₹27.21 Cr, +265.3% YoY, closely tracking operating profit growth. EPS grew 151.6% to ₹8.58, lagging PAT growth of 265.3% due to equity dilution (share count rose from 21.87 Cr to 31.70 Cr post-IPO). Other income surged from ₹0.29 Cr to ₹5.58 Cr, contributing 15.3% of PBT; this is IPO proceeds temporarily parked in FDs.
Key positives
- Revenue grew 119.5% YoY to ₹117.97 Cr, the second consecutive quarter of >100% growth, driven by diamond studded jewellery (+122.4% YoY).
- Gross margin expanded 1,258 bps YoY to 35.6%, the largest expansion in recent quarters, pushing EBITDA margin to 29.84% (+1,173 bps YoY).
- PAT grew 265.3% YoY to ₹27.21 Cr, despite higher depreciation (₹0.36 Cr vs ₹0.04 Cr) and higher tax expense (₹9.19 Cr vs ₹2.40 Cr).
- Other income surged from ₹0.29 Cr to ₹5.58 Cr as IPO proceeds earned FD interest; contributed 15.3% of PBT, adding cushion.
Key concerns
- Sequential revenue declined 14.6% from Q4FY26, though partly seasonal; Q4 is typically the highest quarter for jewellery sales in India due to wedding/Akshaya Tritiya season.
- EPS growth (151.6%) significantly lagged PAT growth (265.3%) due to IPO dilution; share count rose 45% YoY.
- Gross margin contracted 90 bps sequentially from 36.5% in Q4FY26 to 35.6% in Q1FY27; sustainability of the 35%+ margin level needs monitoring.
- Other income contributed 15.3% of PBT; this may decline as IPO proceeds get deployed towards store expansion and marketing.
Research and educational content only. Not investment advice.