Shanti Gold International Limited's Board of Directors has approved a major capacity expansion of its jewellery manufacturing facility during a meeting held on January 22, 2026. The strategic initiative aims to strengthen the company's production capabilities to meet increasing demand from organised jewellery retailers across India.

Expansion Details and Investment

The approved capacity expansion represents a significant enhancement to the company's manufacturing capabilities. The following table outlines the key parameters of the expansion:

The expansion will be entirely funded through internal accruals, demonstrating the company's strong financial position and cash generation capabilities. The rationale behind this expansion is to cater to future increases in demand from the organised jewellery retail segment.

Strategic Market Positioning

According to Chairman & Managing Director Mr. Pankajkumar Jagawat, the capacity expansion reflects confidence in the long-term growth potential of the jewellery manufacturing segment. The initiative is strategically aligned with several market trends:

• Ongoing structural shift towards organised jewellery retail
• Growing preference for dependable and scalable manufacturing partners
• Rising demand for design-led and customised jewellery offerings

The expanded facility will strengthen the company's ability to service leading retail chains with consistent quality, timely delivery, and customised designs at scale.

Company Background and Operations

Shanti Gold International Limited was founded in 2003 by Mr. Pankaj Kumar Jagawat and Mr. Manoj Kumar Jain. The Mumbai-headquartered company has established a strong presence across both North and South India, positioning itself as one of India's trusted jewellery manufacturers.

The company operates a modern manufacturing facility in Mumbai spanning over 13,448 square feet. This facility integrates traditional craftsmanship with advanced technology to deliver elegant, precise, and contemporary designs. Guided by the ethos of "creating timeless beauty through expert craftsmanship," the company continues to partner with leading retailers across India.

Growth Strategy and Market Outlook

With an expanding client base across India and international markets, the increased capacity will enable Shanti Gold International Limited to deepen existing relationships while pursuing new strategic partnerships. The company's focus on organised retail partnerships positions it well to capitalize on the ongoing transformation in India's jewellery retail landscape.

The Board meeting commenced at 10:30 a.m. IST and concluded at 11:45 a.m. IST on January 22, 2026. The company has filed the necessary disclosures under Regulation 30 of the SEBI Listing Regulations with both BSE and NSE, where it trades under the symbols 544459 and SHANTIGOLD respectively.

Shanti Gold International Limited , a leading manufacturer of 22-carat CZ gold casting jewelry, has reported impressive financial results for Q2 FY26, showcasing significant growth and expansion plans.

Financial Highlights

The company's Q2 FY26 performance demonstrates robust growth across key financial metrics:

For H1 FY26, Shanti Gold reported:

• Revenue growth of 42.80% to INR 722.85 crores
• EBITDA increase of 184.50% to INR 102.86 crores
• EBITDA margin improvement to 14.23% from 7.15% in H1 FY25

Operational Performance and Expansion Plans

Shanti Gold International currently operates at 60% capacity utilization with an annual manufacturing capacity of 2,700 kg. The company processed 750 kg of gold in H1 FY26 and projects to close FY26 at 1,900-2,000 kg.

A significant development is the planned construction of a new facility in Jaipur:

• Capex requirement: INR 46 crores
• Expected commencement: May-June 2026
• Additional capacity: 1,200 kg for machine-made plain gold jewelry

This expansion is expected to increase the company's total installed capacity to 3,900 kg per annum.

Market Performance and Future Outlook

October 2025 sales reached INR 302 crores, representing a 3x growth year-on-year. The company has set a revenue guidance of INR 1,900-2,000 crores for FY26.

Management expects to maintain core EBITDA margins of 7-8% going forward, with current elevated margins attributed to inventory appreciation from lower cost base procurement.

Management Commentary

Shriram Iyengar, CFO of Shanti Gold International, stated, "We remain confident that our strategic initiatives and operational strength will continue to drive sustainable growth in the coming quarters."

The company's focus on 22KT CZ studded jewelry, particularly its bridal collection, is cited as a key factor in maintaining higher margins compared to industry peers.

Conclusion

Shanti Gold International's strong Q2 and H1 FY26 performance, coupled with its expansion plans, positions the company for continued growth in the Indian jewelry market. The upcoming Jaipur facility and focus on high-margin product lines are expected to support the company's ambitious growth targets.

Investors and market watchers will be keen to observe how Shanti Gold International leverages its expanded capacity and maintains its margin advantage in a competitive market environment.