1–2 minutes
🔍 Observations
Topline
- Jewellery dominates at ₹79,660 Cr (90% of FY26 revenue), surging 47.6% YoY — gold price tailwind + volume growth driving outsized scale.
- FY26 consolidated revenue from operations hit ₹87,584 Cr (sale of products + other operating revenue), up 49.5% YoY from ₹60,456 Cr — exceptional growth for a consumer discretionary at this scale.
- Q4FY26 revenue ₹27,104 Cr vs Q4FY25 ₹15,032 Cr — 80.3% YoY jump; significant gold-on-loan and inventory build embedded in “other operating revenues” of ₹6,313 Cr (vs ₹1,019 Cr in Q4FY25) warrants scrutiny.
Bottomline
- FY26 PAT ₹5,073 Cr vs FY25 ₹3,337 Cr — 52% YoY growth; EPS expanded from ₹37.62 to ₹57.19.
- Q4FY26 PAT ₹1,179 Cr vs Q4FY25 ₹871 Cr — 35.4% YoY, sequentially down from Q3’s ₹1,684 Cr due to lower jewellery segment EBIT and a ₹51 Cr exceptional loss.
- Effective tax rate stable at ~25.4% in FY26 (FY25: 26.4%) — deferred tax credit of ₹12 Cr provides a small tailwind.
Margins
- FY26 operating margin 8.89% vs FY25 8.76% — marginal 13 bps expansion despite massive revenue scale-up; jewellery’s gold cost structure caps margin leverage.
- Q4FY26 operating margin compressed to 6.54% vs Q4FY25 9.51% — sharp sequential decline driven by ₹21,430 Cr material cost (cost of materials: 78.5% of Q4 expenses).
- Net profit margin FY26 5.79% vs FY25 5.52% — 27 bps improvement; ISCR improved to 12.15x from 9.23x, signalling better interest coverage on higher earnings.
Growth Trajectory
- FY26 jewellery revenue +47.6% YoY; Watches +14.6%; Eyecare +14.4%; Others +57.3% — broad-based growth but jewellery contribution rising, concentrating revenue risk.
- Gold-on-loan balance doubled: ₹7,810 Cr → ₹16,070 Cr — financing jewellery inventory expansion aggressively; sustainable only if gold prices remain elevated.
- Goodwill jumped from ₹123 Cr to ₹758 Cr; intangibles from ₹310 Cr to ₹1,105 Cr — acquisition activity (₹1,171 Cr paid) signals inorganic growth ambition but adds integration risk.