Shanti Gold International reported a significant surge in financial performance for the quarter ended June 30, 2026, with revenue from operations rising 144.69% year-on-year to ₹716.38 crore. The growth was primarily driven by a 61-62% increase in volume, alongside price appreciation and the operational commencement of its new manufacturing facility in Marol, Mumbai.

Profit after tax (PAT) climbed 46.94% to ₹50.48 crore, compared to ₹34.36 crore in the corresponding quarter of the previous year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 39% to ₹71.45 crore, resulting in an EBITDA margin of 9.97%.

Financial Performance

The company’s top-line expansion reflects both organic volume growth and favorable gold price movements. Management highlighted that approximately 61-62% of the revenue growth was attributable to volume, with the remainder driven by value factors.

Other expenses recorded a 132% year-on-year increase. Management clarified that this rise was due to indirect expenses required to support the sales trajectory and scale-up activities, rather than hedging losses or unusual items.

What the Numbers Show

A critical observation from the filing is the composition of the EBITDA margin. While the reported margin stands at 9.97%, management disclosed that approximately 2-2.5 percentage points were derived from unrealized gains locked in finished goods inventory from the previous year, following a change in inventory valuation method from FIFO to Weighted Average Cost (WAC). Excluding this non-recurring gain, the underlying sustainable EBITDA margin is guided at 7.5-8% for the current fiscal year.

Capacity and Strategic Initiatives

The company commenced operations at its new Marol facility during the quarter, which aims to enhance manufacturing flexibility and support just-in-time inventory requirements for large-scale retailers. Existing capacity utilization at the Mumbai facility stands at 75%.

Key strategic developments include:

• Jaipur Facility: A new plant with an allocated capex of ₹47 crore is expected to become operational between mid-November and December 2026.
• Rights Issue: The board approved a rights issue of 46,43,471 equity shares aggregating up to ₹100 crore to fund working capital and growth initiatives. Post-issue, the total share capital will stand at ₹7.67 crore.
• Export Expansion: Exports currently constitute 4% of total revenue. The company is establishing an office in Dubai to expand its international footprint, pending RBI approval.

Guidance and Outlook

Management reaffirmed its full-year guidance for FY27, targeting 50-60% growth in revenue value and 30-40% growth in volume compared to the previous year. The company plans to maintain a debt-to-equity ratio below 1x, utilizing a mix of debt and equity financing to meet incremental working capital needs associated with capacity expansion.

Product mix remains focused on studded jewellery, which accounts for approximately 75% of sales, with plain gold jewellery comprising the remaining 25%. Designer and Turkish jewellery categories are gaining traction and contributing to improved realizations.

Shanti Gold International reported a significant expansion in profitability for the first quarter of FY26, with consolidated net profit rising to ₹519.3 million compared to ₹343.6 million in the corresponding period last year. This represents a year-on-year increase of approximately 51%. The top-line growth was even more pronounced, as revenue jumped to ₹7,163.8 million from ₹2,927.8 million previously.

The company’s profit before tax (PBT) also showed robust growth, reaching ₹652.6 million in Q1FY26, compared to ₹459.0 million in Q1FY25. The financial results for the quarter ended June 30, 2026, were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on August 13, 2026. The results were published in The Financial Express and Mumbai Lakshadeep on August 15, 2026.

Financial Performance Overview

The following table outlines the key financial figures for the quarter based on the consolidated statement:

What the Numbers Show

A key observation from the filing is the strong correlation between revenue growth and net profit expansion. While revenue more than doubled, net profit grew at a substantial rate of 51%, indicating improved operational leverage or favorable cost dynamics compared to the prior year period. The earnings per share (EPS) also rose to ₹7.00 from ₹6.36, reflecting the higher profit base against a stable paid-up equity share capital of ₹721.0 million.

The results have been prepared in accordance with Indian Accounting Standards (IndAS) prescribed under Section 133 of the Companies Act, 2013, and Regulation 33 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.