Shanti Gold H1FY27 Results (NSE: SHANTIGOLD)
Signal: Margin pressure
The read
The trajectory remains volume-led, with H1 revenue up 102.30% on 41.0% gold-volume growth, but profitability is deteriorating relative to growth: EBITDA margin fell 441bps to 7.79% and Q2 margin was only 5.70% versus 8.55% a year earlier. H1 margin is within the previously indicated 7.5%-8% FY27 range, but the 29.22% EBITDA growth versus 102.30% revenue growth shows that scale benefits have not yet translated into operating-margin expansion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,462.33 Cr | 102.30% | N/A |
| Net profit | ₹80.04 Cr | 32.52% | |
| EBIT margin | 7.79% |
P&L walk
H1 revenue rose 102.30% to ₹1,462.33 crore on 41.0% volume growth, while EBITDA increased only 29.22% to ₹113.97 crore and margin contracted 441bps to 7.79%, limiting PAT growth to 32.52% at ₹80.04 crore.
Key positives
- H1 revenue reached ₹1,462.33 crore, up 102.30% YoY, with gold volumes up 41.0% to 1,058 kg.
- Growth was broad-based across domestic and international markets, with export revenue more than doubling during H1.
- The Marol facility commenced commercial production in June 2026, adding manufacturing capacity for demand growth.
- H1 EBITDA of ₹113.97 crore remained within the previously indicated 7.5%-8% FY27 margin range at 7.79%.
Key concerns
- H1 EBITDA grew 29.22% versus 102.30% revenue growth, while EBITDA margin compressed 441bps to 7.79% from 12.20%.
- Q2 EBITDA margin declined to 5.70% from 8.55% despite 73.45% revenue growth, indicating weaker near-term profit conversion.
- PAT grew 32.52% to ₹80.04 crore, substantially below revenue growth, so the current trajectory depends on margin stabilisation rather than volume growth alone.
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