Shanti Gold International Ltd. Q1 FY27 Results

Revenue INR 716.38 crore; PAT INR 50.48 crore

Reader Takeaway: Strong revenue growth driven by capacity expansion; watch margin normalization and working capital.

What just happened

Shanti Gold International Ltd announced robust financial results for the first quarter of FY27 (ended June 30, 2026). Revenue from operations surged by 144.69% to INR 716.38 crore, compared to INR 292.78 crore in the same period last year.

Profit After Tax (PAT) saw a significant increase of 46.94%, reaching INR 50.48 crore from INR 34.36 crore in Q1 FY26. EBITDA stood at INR 71.45 crore.

The company's new Marol facility has commenced operations. Additionally, the board approved a rights issue to raise up to INR 100 crore.

Why this matters

The substantial revenue growth indicates strong market demand and successful capacity utilization. The commencement of the Marol facility and the planned Jaipur facility point towards future volume expansion. The rights issue will provide necessary funds to support this growth by bolstering working capital and inventory.

The backstory

Shanti Gold International has been focusing on expanding its manufacturing capabilities and product mix, particularly in studded jewellery which forms about 75% of its revenue. The company aims to grow its revenue to INR 3,500 crore in FY27.

What changes now

With the Marol facility operational and the Jaipur facility expected by November-December 2026, the company is better positioned to meet growing demand. The rights issue will strengthen its financial base to support increased inventory and working capital requirements.

Risks to watch

Investors should monitor the company's EBITDA margins, which included a one-time inventory gain of 2-2.5% due to a change in valuation method. Normalized margins are expected to be 7.5%-8%. High inventory carrying costs impacting operational cash flow and the overall debt-to-equity ratio (currently 0.50) require close observation.

Peer comparison

While specific peer financial data for Q1 FY27 is not provided in the filing, the company's stated guidance of 50%-60% value growth and 30%-40% volume growth for FY27 indicates aggressive expansion plans within the jewellery sector.

Context metrics (time-bound)

• Q1 FY27 Revenue: INR 716.38 crore (up 144.69% YoY)
• Q1 FY27 PAT: INR 50.48 crore (up 46.94% YoY)
• Q1 FY27 EBITDA Margin: 9.97% (includes ~2-2.5% one-time inventory gain)
• Expected Normalized EBITDA Margin: 7.5%-8%
• Marol Facility Utilization: 75%
• Jaipur Facility Capex: INR 47 crore (expected Nov-Dec 2026)
• Approved Rights Issue: Up to INR 100 crore
• Debt-to-Equity Ratio: 0.50
• FY27 Guidance: 50-60% value growth, 30-40% volume growth
• FY27 Revenue Target: INR 3,500 crore

What to track next

Investors should track the normalization of EBITDA margins, the successful deployment of rights issue funds, working capital management, and the operational ramp-up of the new Jaipur facility.