PNGS Gargi Fashion Jewellery Limited Q3 FY26 Earnings Call Summary

Summary

PNGS Gargi Fashion Jewellery Limited - Q3 FY2026 Earnings Call Summary Friday, February 13, 2026 4:00 PM

Event Participants

Executives 4 Aditya Modak (Director), Amit Modak (Director), Hiranyamai Deshpande (Company Secretary), Vishwas Honrao (CFO)

Analysts 8 Ajay S (Individual), Ananth Shenoy (Individual), Disha (Sapphire Capital), Kiran (Individual), Madhav Malpani (Individual), Nishant Joshi (Equisense Advisors), Paras Kakkad (Individual), Rahul Kumar Paliwal (Shefa Family Office)

Financials & KPIs

Geographic & Segment Commentary

• Maharashtra: Remins the core market due to the 193-year P.N. Gadgil legacy. Single standalone stores in Pune clock ₹1.5–₹2.5 crores annual revenue, with Pune estimated to have capacity for 40+ stores.
• Pan-India Expansion: Active presence in 13 states with successful traction in North India (Lucknow, Amritsar, Gurgaon). Non-Maharashtra locations like Lucknow and Patna (kiosk) are performing at par with standalone shops during their gestation period.
• Product Segments: Silver jewellery constitutes 57% of 9M revenue, while 14k Diamond jewellery holds 38%. Management expects Diamond’s share to rise to 45% by H1 FY27 due to higher ticket sizes (₹15k–₹25k avg).

Company-Specific & Strategic Commentary

• Marketing Strategy: Marketing spend reached ₹6.75 crores in 9M FY26 (doubled YoY). A ₹10 crore promoter equity infusion at ₹970/share is being utilized specifically for pan-India brand awareness via digital and influencer channels.
• Manufacturing Shift: Moving toward indigenous manufacturing in Maharashtra to replicate high-quality imported silver finishes. This move improved COGS from 56% to 53% by capturing manufacturing margins.
• New Product Launches: Introduced 9-carat gold jewellery and kids’ collections to enhance affordability and cross-selling. 9-carat gold has seen initial success with ~1kg sold in the first three months.
• Asset-Light Model: Fixed assets stand at only ₹4.7 crores for an annualized revenue run rate of ₹160 crores. Expansion relies heavily on FOCO (Franchisee Operated Company Owned inventory) and SIS models.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Growth & Seasonality

• Question: Why was Q3 growth lower than expected compared to Q2? (Nishant Joshi)
• Answer: Q2 benefited from 10 festival days in late September and 60% of festival inventory being billed to FOFO franchisees in advance. B2C sales during the actual festival remained strong (Amit Modak).

Unit Economics

• Question: What is the ROI on an exclusive brand outlet (EBO)? (Saurabh Kumar)
• Answer: An EBO requires ~₹1 crore (capex + inventory). At maturity (Year 2), it yields a shop-level ROI of 22%–25% (Amit Modak).

Market Positioning

• Question: How do you maintain 30%+ EBITDA when competitors are at 5%–15%? (Ajay S)
• Answer: We do not “burn cash” to acquire customers. The 190-year legacy provides organic trust, reducing the need for excessive customer acquisition costs (Amit Modak).

Main Board Listing

• Question: What is the status of migrating to the Main Board? (Kiran)
• Answer: SEBI criteria changed to require ₹15cr operating profit for three consecutive years. FY26 will be our third year meeting this; we expect to migrate by September 2026 (Amit Modak).

Future Expansion

• Question: Will you need to dilute equity for the next 30 stores? (Saurabh Kumar)
• Answer: No. Treasury of ₹70 crores and internal accruals are sufficient for the next 18–24 months of expansion (Amit Modak).

Key Takeaway

PNGS Gargi Fashion Jewellery delivered a resilient Q3 FY26 with 27% revenue growth and maintained industry-leading PAT margins above 20%. Excluding one-time accounting shifts from the previous year, underlying 9-month growth stood at a robust 54%. The company is successfully transitioning from a regional player to a pan-India brand, utilizing a ₹10 crore promoter-funded marketing budget and leveraging its ₹70 crore debt-free treasury to fuel expansion. Strategically, the shift toward 14k Diamond jewellery and 9k gold is increasing ticket sizes while maintaining the “pocket-friendly” value proposition. Management remains committed to a “not less than 35%” growth rate and plans to migrate to the BSE/NSE Main Board by September 2026. Consistent profitability and internal accrual-funded growth remain the core pillars of their sustainable business model.