Shanti Gold International Ltd (SHANTIGOLD) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to the Shanti Gold International Limited Q2 and H1 FY27 earnings conference call. As
Moderator: All participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harshal Ghanshani. Thank you, and over to you, sir.
Harshal Ghanshani (Adfactors): Yes, thank you, Avilash. Good afternoon, everyone. I am Harshal Ghanshani from Adfactors Investor Relations Team. On behalf of Shanti Gold International Limited, it is my pleasure to welcome you all on the Q2 and H1 FY26 Earnings Conference Call. Joining us on the call from the management team, we have Mr. Pankaj Kumar Jagawat, Chairman and Managing Director, Mr. Sreeram Iyyengar, Chief Financial Officer. We'll today We'll begin today's call with opening remarks from the management following which we will open the floor for a Q&A session. Before we begin, I would like to remind everyone that certain statements made in today's call may be forward-looking in nature. These statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Shanti Gold International Limited undertakes no obligation to publicly publicly update or revise any forward-looking statement based on subsequent events or new developments. With that, I would like to hand over the call to Mr. Pankaj sir for his opening remarks. Thank you, sir. Over to you, sir.
Pankaj Kumar Jagawat (Shanti Gold International Ltd): Good afternoon, everyone, and a very warm welcome to our Q2 and H1 FY27 earnings. First, I would like to extend my heartfelt Diwali to our investors, analysts, business partners, and their families. May this festive season bring happiness, prosperity, and success to all. Let me begin by highlighting the strong operational movement momentum that we sustained during the first half of FY27. Our focus has been on driving volume growth, expanding our manufacturing capabilities, and strengthening our relationship with retail partners. This has translated into a strong top-line performance with revenue from operations growing 73.4% year-on-year in Q2 FY27 and 102.3 in H1 FY27. Our volume has our volume also increased by 25.4% in the quarter and 41.0, 41% in the first half reflecting healthy demand from all our retail partners and our ability to scale up execution. The performance reflect reflects the progress we are making in building a larger and more capable manufacturing platform. During the period, the commencement of operations at our extended manufacturing facility in Marol added capacity and flexibility to our operations. The facility has contributed to our business enabling us to service a wider range of customers and requirement and support the growth in volumes. Alongside capacity expansion, we continue to broaden our product portfolio and strengthen our customer relationships. We have been expanding our offerings across categories including designer and Turkish jewelry. While deep deepening engagement with existing customers and onboarding new retail clients, our focus remains on becoming a more dependable manufacturing partner to organize retail chains and large jewelry players. During the quarter, we also successfully raised approximately INR 98 99.83 crore through a rights issue. These are working capital requirement and are expect to support our business operations as we scale up. This capital infusion strengthens our ability to service growing business requirement and provide additional support to our for our expansion and growth plans. The Indian jewelry industry continues to evolve with an with an increasing shift towards organized retail and technology-enabled manufacturing. Large retail chains and jewelry brands are seeking manufacturing partners who can deliver consistent quality, superior finishing, product authenticity, traceability, and reliability at scale. We believe this shift creates a meaningful opportunity for organized manufacturers with established capabilities, infrastructure, and execution track record. With legacy of 25 years, Shanti Gold is well positioned to participate in this opportunity. Our priority remains clear: strengthen our manufacturing platform, deepen relationship with existing customers, onboard new retail partners, and respond to changing market preferences through differentiated product offering. We believe our ability to cater to multiple customers fully varied requirement and operate at scale will remain an important competitive advantage. Geographical expansion is another important part of our growth strategy. Our upcoming Jaipur facility is intended to introduce machine-made gold machine-made plain gold jewelry and strengthen our presence in North India. This will complement our existing manufacturing capabilities and product portfolio, which allow us to serve customers across a wider market. Looking ahead, we would like to reiterate to the revenue guidance of communicated. We had a guidance revenue of approximately INR 3,200 crores to INR 3,500 crores for the full financial year FY27. This would represent growth of a 60% com-
Pankaj Kumar Jagawat (Shanti Gold International Ltd): FY with FY26, we remain focused on delivering on this guidance through volume growth, capacity utilization, customer addition and continued execution, while maintaining discipline and working capital management. To conclude, the first half of FY '27 has been encouraging with strong growth in both volumes and revenue. We believe the investments made in manufacturing capacity, the strengthening of our product portfolio and customer relationship, together with the support from the right issue, provide a solid foundation for the next phase of growth. Our focus will remain on scaling the business in a sustainable and disciplined manner. With that, I would like now to hand over the call to Mr. Sriram Iyengar, our CFO, who will take you through the financial performance of the company for Q2 and H1 FY '27 in a greater detail. Over to you, Sriram.
Sreeram Iyyengar (Shanti Gold International Ltd): Thank you, Pankajji. And good afternoon to everyone. I would also like to extend my warm Diwali wishes to all our investors, analysts and stakeholders and their families. I hope the festive season brings happiness, prosperity and success to all. Now, I will take you through the financial performance of the company for Q2 and H1 FY '27 beginning with the second quarter. Revenue from operations stood at INR 746 crores compared to INR 430 crores in Q2 FY '26, registering a year-on-year growth of 73.5 percentage. EBITDA for the quarter was INR 42.5 crores compared to INR 36.8 crores in the corresponding period last year, representing growth of 15.6 percentage. Profit after tax stood at INR 29.6 crores compared to INR 26 crores in Q2 FY '26, registering year-on-year growth of 13.5 percentage. The quarter was supported by healthy demand from our retail partners, resulting in a 25.4% year-on-year increase in volumes to 535.5 kgs. For the first half of FY '27, revenue from operations stood at INR 1,462.3 crores compared to INR 722.9 crores in H1 FY '26, registering a year-on-year growth of 102.3 percentage. EBITDA stood at INR 114 crores compared to INR 88.2 crores in the corresponding period last year, representing growth of 29.2 percentage. Profit after tax for the first half stood at INR 80 crores compared to INR 60.4 crores in H1 FY '26, registering a year-and-year growth of 32.5 percentage. The additional capacity at our Marol facility enabled us to meet sustained demand, taking volumes up 41% year-on-year to 1,057.6 kgs. Dhanteras, Diwali, and the wedding seasons season that follow are amongst the most important demand demand period for the jewellery industry in India as retailers build inventory ahead of this occasion. We have seen healthy traction from our retail partners in the run-up to the festive season and we remain optimistic about demand through the second half of the year. To conclude, Q2 and H1 FY '27 reflects strong growth in revenue and volumes supported by a healthy demand from our retail partners. As we move into the second half of the year, our focus will be on sustaining this operating momentum, meeting customer requirements through the festive and wedding season and executing our growth plans with continued financial and working capital discipline. With this, I would like to conclude our opening remarks and begin the question-and-answer session. Thank you.
Moderator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Hina Parekh from Starcloom Investments. Please go ahead.
Hina Parekh (Starcloom Investments): Thank you for the opportunity and congratulations for set of numbers. Well, the company has delivered a strong H1 performance with revenue growth of over 100%, volume growth over 41%. I just want to know like what were the key drivers behind this and is it sustainable for the coming quarters, particularly since we have recently commissioned the Marol capacity, now being operational, right?
Hina Parekh (Starcloom Investments): do we see this I mean how do we see the growth outlook for the second half of the year are there any seasonal demand trend or any other auto visibility or any other business factors can you throw some color on that as well
Sreeram Iyyengar (Shanti Gold International Ltd): Yeah thank you for the question now. Yes, good set of numbers to begin with 73% Y-o-Y growth in Q2 and 100% in H1 So, that's it volume about the kind of business that we are in, the kind of expertise that we are in. Now, the key drivers of the business that I would like to let you know the growth has been driven by combination of increased customer acquisition the penetration with existing customers capacity expansion and a broader product portfolio We are also been benefited from increasing formalization in the jewelery industry and growing preferences for organized manufacturers. So, our strategy remains very simple to focus on gaining market share rather than optimizing for short term the short term margins. The investments that we made in manufacturing capabilities, product development, customer relationship are now translating into a strong top line growth in the coming years. So, we believe that this remains significant that remains significant headroom for growth given the size of addressable market in the near future.
Hina Parekh (Starcloom Investments): Got it. Got it. And yes, got it. And like you mentioned, like we are expanding our manufacturing capacity and I think even in your opening commentary you mentioned that we are sending good retail partnerships, do we see a similar kind of growth potential over the next two to three years as well?
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