Shankesh Jewellers Q1FY27 Results: Net profit doubles 100% YoY to ₹43 crore
- Net profit doubled 100% YoY to ₹43 crore in Q1FY27
- Revenue surged 55% YoY to ₹424 crore from ₹273 crore
- EBITDA grew 92% YoY to ₹61 crore with margin expansion
- Corporate clients contributed 66% of total revenue
- Debt-to-equity ratio improved to 0.8x in FY26
*this image is generated using AI for illustrative purposes only.
Shankesh Jewellers reported a 100% year-on-year increase in net profit to ₹43 crore for the first quarter of FY27 (Q1FY27), driven by robust top-line growth and significant operating leverage. Revenue from operations rose 55% year-on-year to ₹424 crore, up from ₹273 crore in Q1FY26.
The Mumbai-based handcrafted gold jewellery manufacturer delivered strong profitability metrics alongside stable 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 continued strength for the newly listed entity, with key financial indicators reflecting improved efficiency. Gross profit stood at ₹66 crore, up 95% year-on-year, with the gross margin expanding by 323 basis points. This improvement flowed through to the bottom line, where PAT margins widened significantly.
| Metric | Q1FY27 | Q1FY26 | YoY Change |
|---|---|---|---|
| Revenue | ₹424 crore | ₹273 crore | +55% |
| Gross Profit | ₹66 crore | ₹34 crore | +95% |
| EBITDA | ₹61 crore | ₹32 crore | +92% |
| Net Profit (PAT) | ₹43 crore | ₹22 crore | +100% |
EBITDA was reported at ₹61 crore for the quarter ended June 30, 2026, increasing 92% year-on-year. Employee benefits expense declined to ₹3.3 crore from ₹11.3 crore in the prior quarter due to the absence of ex-gratia payments taken by directors in Q4FY26. Finance costs were recorded at ₹29.4 crore.
What the Numbers Show
A notable divergence exists between the company's revenue growth and its volume stability. Management stated that physical volumes remained consistent quarter-on-quarter, implying that the 55% revenue growth was primarily driven by higher gold prices and a shift towards higher-margin product mixes, particularly intricate bridal collections during the Akshaya Tritiya festival. While gross margins expanded by 323 basis points year-on-year, management noted that margins fluctuate based on product mix, with handcrafted intricate designs commanding premiums over standard offerings.
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 approximately 80% of revenue, while 18 Karat offerings contributed approximately 20%. The company has been steadily expanding its 18-karat presence, with revenue rising from ₹18 crore in FY24 to ₹221 crore in FY26.
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 2.1 times in FY23, indicating a strengthening financial position ahead of the new fiscal year. Inventory turnover stood at eight times per year.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE1WFC01025/1680ac09-9421-4ba1-9383-12c3452d03bf.pdf
Historical Stock Returns for Shankesh Jewellers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.57% | -6.77% | -4.14% | -5.45% | -5.45% | -5.45% |
How sustainable is the current 323 bps gross margin expansion given the reliance on high-margin bridal collections and fluctuating gold prices?
What specific strategies is Shankesh Jewellers employing to mitigate the risk associated with its heavy dependence (66%) on corporate clients?
Can the company maintain its asset-light operational efficiency and inventory turnover of eight times as it scales further post-IPO?
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