Shanti Gold Restates Q1-Q3 FY26 Results on Policy Change

Shanti Gold International has submitted its restated financial results for the first, second, and third quarters of the fiscal year 2025-26. The restatement follows a voluntary change in the company's accounting policy for inventory valuation, which was approved by the Board of Directors on May 11, 2026. The statutory auditors, J. Kala & Associates, have issued a Limited Review Report on these unaudited restated results.

Accounting Policy Change

The Board approved a shift in the inventory valuation method from the First-In-First-Out (FIFO) method to the Weighted Average Cost (WAC) method. This change has been applied retrospectively with effect from April 01, 2024, as mandated under Ind AS 8. The company stated that the WAC method better reflects the blended cost of inventories, improves cost and revenue matching, and aligns its practices with prevailing industry norms. Consequently, comparative financial results for the corresponding periods have been restated.

Restated Financial Performance

The restated financial results for the quarters ended June 30, September 30, and December 31, 2025, indicate the company's performance under the new accounting policy.

For the quarter ended June 30, 2025, the company reported a net profit of ₹343.55 million on revenue from operations of ₹2927.75 million. In the quarter ended September 30, 2025, the net profit stood at ₹260.03 million with revenue of ₹4300.78 million. For the quarter ended December 31, 2025, the net profit was ₹278.65 million on revenue of ₹6369.25 million.

The table below summarizes the key restated financial metrics for the quarters ended September 30, 2025, and December 31, 2025:

Parameter	Quarter Ended Sep 30, 2025	Quarter Ended Dec 31, 2025
Revenue from Operations	₹4300.78 million	₹6369.25 million
Total Income	₹4327.48 million	₹6394.92 million
Total Expenses	₹3989.33 million	₹5990.84 million
Net Profit	₹260.03 million	₹278.65 million
Basic EPS	₹4.33	₹4.35

Operational Details

The company operates as a single segment engaged in the business of wholesaling and manufacturing gold ornaments. The paid-up equity share capital as of September 30, 2025, was ₹720.96 million, increasing from ₹540.00 million as of March 31, 2025, following the successful completion of its Initial Public Offering (IPO). The equity shares were listed on BSE and NSE with effect from August 1, 2025.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.69%	-4.99%	-3.90%	+12.47%	-4.80%	-4.80%

Shanti Gold International Limited's Board of Directors, at its meeting held on May 11, 2026, approved a voluntary change in the accounting policy for inventory valuation. The company will transition from the First-In-First-Out (FIFO) method to the Weighted Average Cost (WAC) method, upon the recommendation of the Audit Committee. The change is being implemented in accordance with Ind AS 8, which permits such a voluntary shift only where the new policy provides financial statements containing more reliable and relevant information. The change will be applied retrospectively with effect from April 01, 2024, and will govern financial reporting from FY 2025-26 onwards.

Key Details of the Accounting Policy Change

The following table summarises the key parameters of the approved policy change:

Parameter:	Details
Nature of Change:	Change in Accounting Policy
Previous Method:	First-In-First-Out (FIFO) Method
Revised Method:	Weighted Average Cost (WAC) Method
Effective Date & Year:	Retrospectively from April 01, 2024; effective for FY 2025-26 & onwards
Application Method:	Retrospective Application
Applicable Standards:	Ind AS 2, Ind AS 8, Ind AS 1 (Para 38), Ind AS 34, Ind AS 7

Rationale for the Change

The Audit Committee recommended the transition to the WAC method on the basis that it better serves the company's operational and reporting requirements. The key reasons cited include:

Better reflection of the blended cost of inventories given price volatility in raw material procurement
Improved and consistent cost-revenue matching, enhancing the reliability of reported performance
Alignment of the company's accounting policy with prevalent industry practice, improving comparability with peer entities

Financial Impact on Profit Before Tax

The company has carried out a detailed analysis to quantify the impact of this change across restated periods. The estimated impact on Profit Before Tax (PBT) under both methods is presented below:

Particulars:	FIFO (INR Lakhs) FY 25-26	FIFO (INR Lakhs) FY 24-25	WAC (INR Lakhs) FY 25-26	WAC (INR Lakhs) FY 24-25
For the Quarter Ended June:	3,291.65	1,179.14	4,589.65	2,465.15
For the Period Ended June:	3,291.65	1,179.14	4,589.65	2,465.15
For the Quarter Ended September:	5,762.44	1,292.37	3,381.61	1,242.21
For the Period Ended September:	9,054.09	2,471.51	7,971.26	3,707.36
For the Quarter Ended December:	5,679.79	2,266.03	4,041.03	1,976.16
For the Period Ended December:	14,733.82	4,737.57	12,012.01	5,683.53

Financial Information for FY 2024-25 Post Policy Change

The table below presents the restated financial information for FY 2024-25 after considering the impact of the change in accounting policy:

Particulars:	FIFO (INR Lakhs)	WAC (INR Lakhs)
Opening Inventory:	12,860.25	11,569.68
Closing Inventory:	14,858.43	13,394.10
Retained Earnings as on April 01, 2024:	8,766.95	7,801.19
Profit Before Tax:	7,283.09	7,109.33

All metrics and details provided above are subject to the audit process by the Statutory Auditors.

Compliance and Next Steps

The requisite submissions and filings on account of the change in inventory valuation method will be made in due course. The Board Meeting commenced at 04:00 p.m. IST and concluded at 04:45 p.m. IST on May 11, 2026. The intimation has also been uploaded on the company's website at www.shantigold.in .