Shankesh Jewellers Q1FY27 Results: Net profit doubles 100% YoY to ₹43 crore
- Net profit doubled 100% YoY to ₹43.2 crore in Q1FY27
- Revenue grew 55% YoY to ₹423.6 crore driven by corporate clients
- EBITDA margin expanded 279 bps to 14.4% amid operating leverage
- Corporate clients accounted for 66% of total revenue mix
- Trade receivables rose sharply to ₹126.4 crore as of March 2026
*this image is generated using AI for illustrative purposes only.
Shankesh Jewellers Limited reported a 100% year-on-year increase in net profit to ₹43.2 crore for the first quarter of FY27 (Q1FY27), driven by robust top-line growth and significant operating leverage. Revenue from operations rose 55% YoY to ₹423.6 crore, while EBITDA more than doubled to ₹61.2 crore.
The Mumbai-based handcrafted gold jewellery manufacturer, which recently completed its public listing on the NSE and BSE, delivered strong profitability metrics alongside the volume growth. The company’s asset-light model, leveraging a network of skilled karigars, allowed it to scale operations without a commensurate increase in fixed infrastructure costs.
Financial Performance
The quarter marked a strong start for the newly listed entity, with key financial indicators reflecting improved efficiency. Gross profit surged 95% YoY to ₹66.2 crore, with the gross margin expanding by 323 basis points to 15.6% from 12.4% in Q1FY26. This improvement flowed through to the bottom line, where PAT margins widened by 230 basis points to 10.2%.
| Metric | Q1FY27 | Q1FY26 | YoY Change |
|---|---|---|---|
| Revenue | ₹423.6 crore | ₹273.2 crore | +55% |
| Gross Profit | ₹66.2 crore | ₹33.9 crore | +95% |
| EBITDA | ₹61.2 crore | ₹31.8 crore | +92% |
| Net Profit (PAT) | ₹43.2 crore | ₹21.6 crore | +100% |
EBITDA grew by 92% YoY to ₹61.2 crore, with the EBITDA margin expanding by 279 basis points to 14.4%. Employee costs rose to ₹3.3 crore from ₹1.1 crore, while other expenses increased modestly to ₹1.8 crore. Interest expenses remained stable at ₹2.9 crore, slightly up from ₹2.6 crore in the prior year period.
What the Numbers Show
A notable divergence exists between the company's revenue growth and its working capital requirements. While revenue grew 55%, trade receivables as of March 2026 stood at ₹126.4 crore, up significantly from ₹78.9 crore in March 2025. This suggests that the rapid scale-up in corporate client deliveries may be extending credit cycles or that larger bulk orders are being fulfilled closer to the fiscal year-end. Investors should monitor receivable days in subsequent quarters to ensure collection efficiency keeps pace with this aggressive top-line expansion.
Business Mix and Strategy
Corporate clients continue to dominate the revenue mix, contributing 66% of total sales in Q1FY27, compared to 34% from non-corporate clients. This shift from 55% in FY24 indicates deepening relationships with major jewellery brands. The product portfolio remains heavily skewed towards 22 Karat gold jewellery, which accounted for ₹337 crore (79%) of revenue, while 18 Karat offerings contributed ₹85 crore (20%).
Manoj Kantilal Jain, Managing Director, highlighted the successful completion of the listing as a new chapter for the company. He noted that the strong financial performance reflects the resilience of their business model and customer relationships. The management emphasized plans to increase wallet share with existing corporate clients through co-creation and design innovation.
Balance Sheet Signals
As of March 2026, shareholder’s equity stood at ₹209.4 crore, bolstered by capital raised during the IPO process. Short-term borrowings were at ₹168.1 crore, while inventories held at ₹240.0 crore. The debt-to-equity ratio improved to 0.80 times in FY26 from 1.44 times in FY25, indicating a strengthening financial position ahead of the new fiscal year.
Historical Stock Returns for Shankesh Jewellers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.49% | +0.47% | 0.0% | 0.0% | 0.0% | 0.0% |
How might the significant rise in trade receivables impact Shankesh Jewellers' cash flow and working capital efficiency in upcoming quarters?
What strategies is the company employing to diversify its revenue mix beyond the dominant 22 Karat gold segment and reduce reliance on corporate clients?
Given the asset-light model's success, does management plan to reinvest IPO proceeds into expanding its network of karigars or exploring new geographic markets?
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