Summary
Shringar House of Mangalsutra Limited - Q3 FY26 Earnings Call Summary Wednesday, February 12, 2026 03:00 P.M. IST
Event Participants
Executives 4 Chetan Thadeshwar (CMD), Rachit Sinha (CS & Compliance Officer), Ritesh Doshi (CFO), Viraj Thadeshwar (ED & CEO)
Analysts 5 Ajit Sethi (Eiko Quantum Solutions), Harshal (Rashi Fincorp), Neha Jaisinghani (SJN Capital), Prateek Shah (Investing Alpha), Preeti Agarwal (SK Associates)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹658.9 crores | +68.4% YoY; Driven by a mix of volume and value growth. |
| Sales Volume | 551.2 kg | +3.4% YoY; Reflects steady demand in the B2B segment. |
| Gross Profit | ₹54.7 crores | +111.4% YoY; Significant expansion due to higher-end product mix. |
| Gross Profit Margin | 8.3% | +169 bps YoY; Improvement attributed to design-led pricing power. |
| EBITDA | ₹40.2 crores | +105.8% YoY; Strong operational leverage as capacity utilization increases. |
| EBITDA Margin | 6.1% | +111 bps YoY; Disciplined cost management and higher process efficiency. |
| Profit After Tax (PAT) | ₹30.1 crores | +134.2% YoY; Robust bottom-line growth on higher revenue base. |
| PAT Margin | 4.6% | +129 bps YoY; Management targets maintaining ~5% levels sustainably. |
| Organized Client Share | 50% | Increased from 34% in FY25; Reflects shift toward corporate jewelers. |
Geographic & Segment Commentary
- Domestic Expansion: The company recently inaugurated offices in Delhi and Pune. The Delhi office aims to penetrate the North Indian market (Jammu to Bihar), while the Pune office targets the high-consumption Mangalsutra markets of Marathwada and Vidarbha.
- B2B Corporate Segment: This segment now accounts for 50% of revenue, up from 34% last fiscal year. Management is prioritizing partnerships with organized players like Titan, Malabar, and Indriya as they aggressively expand their pan-India store counts.
- Manufacturing & Technology: Current operations run at 70% capacity utilization out of a 2,500 kg annual capacity. The company is relocating to a new “state-of-the-art” facility in Mumbai to double production capacity and meet rising corporate demand.
Company-Specific & Strategic Commentary
- Product Innovation: Shringar maintains 10,000+ SKUs and 15+ collections, including 24K Hallmarked Mangalsutras and 18K Italian concepts to attract younger demographics.
- Distribution Model Transition: Moving beyond direct supply to establish a pan-India network via third-party facilitators. Five facilitators are already partnered to enter untapped local regions.
- Inventory & Hedging: Employs a comprehensive hedging policy using Gold Metal Loans (GML), MCX, and IIBX to mitigate gold price volatility, ensuring margins remain independent of raw material price swings.
- Operational Automation: Mitigation of labor shortages involves integrating machinery from Italy, Turkey, and China, which has significantly increased output per artisan.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 30% - 35% CAGR | Sustained growth expected from organized retail expansion and market share gains. |
| Capacity Expansion | ~100% Increase | New facility to be operational within 3 months to support future demand. |
| Market Share | Long-term increase | Current market share is 6%; management sees significant room for penetration in the fragmented sector. |
Risks & Constraints
| Risk | Context |
|---|---|
| Working Capital Intensity | The business requires high inventory levels and offers 2-30 day credit cycles. Management uses IPO proceeds to fund this but remains reliant on credit hygiene. |
| Raw Material Volatility | Exposure to gold price fluctuations. Mitigated through GMLs and back-to-back hedging, but requires constant monitoring of bullion market liquidity. |
| Concentration Risk | While diversifying, 50% of revenue is tied to corporate clients. Management notes that while relationships are long-standing, there are no fixed off-take agreements. |
Q&A Highlights
Inventory Management
- Question: Why is inventory lower than B2B peers? (Harshal, Rashi Fincorp)
- Answer: B2B cycles differ from retail; payments range from 2 to 30 days. Stock is kept primarily for manufacturing and showroom displays for GST-registered jewelers (Chetan Thadeshwar).
Capacity & Capex
- Question: Is current capacity sufficient for 30% CAGR? (Ajit Sethi, Eiko Quantum Solutions)
- Answer: Board has approved a new facility that will roughly double capacity. It will follow corporate parameters required by clients like Tata and be online within 3 months (Chetan Thadeshwar).
Hedging Strategy
- Question: How do you manage gold price volatility and inventory turnover? (Neha Jaisinghani, SJN Capital)
- Answer: We use three prongs: back-to-back market buying, Gold Metal Loans (GML), and MCX hedging. This ensures the margin remains intact regardless of gold price movements (Chetan Thadeshwar).
Product Diversification
- Question: Are you moving into other categories like chains? (Vivek Gupta, Star Investments)
- Answer: Current Mangalsutra market share is only 6%, so there is massive room to grow. However, we have the machinery to pivot to other jewelry if profitability is higher (Chetan Thadeshwar).
Demographic Trends
- Question: How do you capture the younger generation? (Prateek Shah, Investing Alpha)
- Answer: We have transformed the Mangalsutra from tradition to trend. We offer 18K lightweight Italian designs, bracelets, rings, and charms to suit modern tastes (Chetan Thadeshwar).
Key Takeaway
Shringar House of Mangalsutra delivered a strong Q3 FY26, with revenue growing 68.4% YoY to ₹658.9 crores and PAT surging 134.2% to ₹30.1 crores. The quarter was marked by a significant shift toward organized retail, with corporate clients now contributing 50% of total revenue. Strategically, the company is addressing capacity constraints by doubling its production through a new facility slated for Q1 FY27 and expanding its geographic footprint via new offices in Delhi and Pune. Management remains committed to a 30-35% CAGR, supported by a vast 10,000+ SKU portfolio and a robust hedging mechanism that protects margins from gold price volatility. While the business remains working capital intensive, the relocation to a high-capacity, technology-driven facility positions the company to capture a greater share of the fragmented Indian jewelry market.
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