Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
P N Gadgil Jewellers Ltd (NSE: PNGJL) Q4 2026 Earnings Call dated May. 15, 2026
Corporate Participants:
Saurabh Gadgil — Chairman and Managing Director
Deepak Vijay — Chief Financial Officer
Analysts:
Rajiv Bharati — Analyst
Unidentified Participant
Ankur — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the P.N. Guardgill Journalist Limited Q4FY26 earning conference call. As a reminder, all participant lines are with the listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Ayush Adutkya from Noah Wealth Management Ltd.
Thank you and over to you sir.
Rajiv Bharati — Analyst
Thank you Julius Good afternoon everyone. On behalf of Nama, it’s a pleasure to welcome you to TN Guardville Vel 4 Q S 26 earnings conference call terms of management today we have Dr. Saurabh Bil, Chairman and MD and Mr. Deepak Vijay, CFO. I would like to hand over the call to the management for their opening remarks. Over to you far.
Saurabh Gadgil — Chairman and Managing Director
Thank you Ayush Good afternoon everyone and a very warm welcome to the Q4 and the full year FY26 earning conference call of PM Cardigan Jewelers Ltd. I hope all of you had the opportunity to review our quarterly results, press releases and investor presentation which have been made available on the stock exchanges as well as on the company’s website. Before I take you through the presentation, I would like to begin by expressing my heartfelt gratitude to our customers, employees, our vendors, our partners, shareholders, bankers and all you well wishers whose unwavering trust has been the cornerstone of everything we have achieved so far this year.
FY26 has been truly a defining year for PNG. A year in which we crossed several meaningful milestones, expanding to new geographies and reinforced the depth of our 194 year old legacy. Most importantly, FY26 marks a year in which we crossed 10,000 crores of revenue. A milestone for the first time reporting a full year consolidated revenue of 10,739 crores, a growth of 40% year over year. This is a moment of great pride for the entire P and G family. An aspiration we have nurtured for many years and one which we are deeply humbled to have achieved.
This performance was meaningfully supported by an outstanding fourth quarter in which the total consolidated revenue grew by 1.23% year year over year to 3,544 crore. A clear reflection of the strong, festive and continued demand across each of our core business segments. The quarter benefited from a strong wedding and festive season complemented by record Breaking eventless sales Starting with the foundation day, we recorded a sale of 365 crores with healthy contribution across all product categories.
This was followed by Guri Parva, a culturally important festival in Maharashtra where we recorded sales of 171 crores or 38% YoY growth. Subsequently we took commensurate our 10,000 crore mark milestone. We celebrated a gratitude day offer with our customers in which we delivered a sale of 225 crores, a heartwarming response from our patrons that reaffirmed the emotional connect our brand enjoyed across markets. Coming to Operational performance the store expansion including geographical diversification remained a key theme throughout the year.
During the FY of Q4 2026 we added 12 new stores, 8 cocoa in which 3 legacy and 5 lifestyle and 4 coco 1 legacy and 3 lifestyle taking our total store count to 78 as of 31st March 2026. On a full year basis we added 25 new stores reinforcing our position as one of the fastest growing organized jewelry brands in the country. Our Q4 expansion also included spending our presence in Maharashtra and entering new potential markets like UP with the launch of stores in Gorakhpur and Banaras. Further I would like to briefly address on the margins which we have the Taliban which are also uploaded on the stock exchanges.
So as of when you compare Q4 or FY26 versus Q4 FY25 the gross margin dilution of almost 2.3% 230 basis points. The company had consolidated gross margins of for Q4 FY26 which went down by 2.3% year over year. So the three factors primarily which can identify to this are higher share of gold bars and coins in the overall sales mix. This can be attributed to a 150 basis.1.5% decline. The share of gold bars and coins sales in the overall revenue mix rose 28% in Q4FY25 to 40% in Q4FY26. In value terms it rose from 450 crores to 1400 crores.
As this segment operates on a structurally very thin spread the company’s overall core retail jewelry business. The elevated contribution compressed the consolidated gross margins due to consumer shift of gold from consumption to gold for investment in Q4 FY26 all gold. I would like to once again reiterate that all gold bar and coin sale in this period are purely B2C to customers and there is no refinery or B2B business in this continuing the same point in Q4 of FY26 we saw a 1% lowering in the studded jewelry mix.
Now this was a one time impact due to the Foundation Day and the Gratitude day offer wherein there was heavy discounting on the gold making charges and which led to almost a 1% drop in the studded ratio as compared to Q4FY26. So Q3 versus Q4 they are the 1% lowering student ratio. Also to mention as we have mentioned ahead with the promotional activities targeting Gudi Parva and with the Foundation Day and Gratitude day offer, the marketing, promotion and trade discounts were in excess of 50 crores which again had an impact on the margins.
So these three together have been able to be able to demonstrate widely margins in Q4. But if you look at year on year basis we are still able to stick to our estimate of 12% gross margin and with almost a 3.75 to 4% PAT levels going ahead. There’s also a question on the Q4 FY26 versus Q3 of FY26 here too I would like to point out that the franchisee sale proportion had gone up by almost 200 crores in this quarter as we added five new franchisees and the franchisee gross margins are in the range of 2.5% to 3%.
So this was again one of the reasons why the margin saw a dip as compared to Q3 versus Q4. Again the sale of gold bars and gold coins was again one of the factors which led to a decline in the margins in Q4 as compared to Q3. If you look at the business in terms of value it would have the gold bars and coins in Q3 were 1100 crores which increased to 1400crores in Q4. And in a similar way the studied ratio went down by 1% which again had a negative impact on the margin in Q4. As far as the company’s hedging is concerned, our monthly sales is in the range of around as of 600 kilos.
The inventory we hold is around 2000 kilos and our hedging as we speak as of Q4 was around 67%. This hedging in the Q4 FY25 was in the range of 55%. So as committed we increase the hedging by 10 to 12%. So the gain from unhedged portion of sales in the Q4 of FY25 was 74 crores, in Q3 FY26 was 45 crores and in Q4 FY26 was 20 crores. So this was another reason why we are seeing the dip in the margins. But having said this, the company remains committed to the gross margin guidance of around 12 to 13% with a EBITDA of 77.5% and a PAT of 4% which also is in line with the current year’s performance.
I would now ask RCF to further continue with the comments ahead. Thank you Saurabh and good afternoon everyone. I will take you through the financial performance of PM Gard Limited for Q4 and the full year ended March 31, 2026. We are pleased to have crossed the landmark of 10,000 crore revenue milestone during FY26 defining achievement in the company’s growth journey. For FY26, consolated revenue grew 40% year on year to 10,739 crores. Gross of profit grew 83% year on year to 1,302 crores with gross margin expanding by 200bps to to 12% on a yearly level reflecting structural improvement in the product mix.
EBITA grew 90% year on year to 704 crores with EBITDA margin improving by 180 pips to 6.6% which is in line with the earlier guidance as well. Pat grew 88% year on year two 410 crores while Pat margin expanded by 100 bits to 3.8 crores in this year versus last year. Roce and Roe improved to 30.5% and 21% respectively year on year on a full year basis. While coming back to the segmental performance, our retail segment continued to remain the primary growth driver reporting a revenue growth of 51% year on year to 8131 crores led by healthy same store sales growth of 43% driven by wedding and festival demand, improved product mix and contribution from newly added stores.
The stud ratio for the full year has also increased to 9.9%. The e commerce segment delivered robust growth of 105% year on year to 529 crores reflecting increasing digital adoption and rising consumer preference for convenience led jewelry purchases. We continue to strengthen our digital capabilities to further enhance customer engagement and accessibility. The franchisee segment also demonstrated strong momentum growing 83% year on year to 1292 crore driven by store expansion and healthy traction across existing operational markets.
The franchisee led model continues to support our asset light expansion strategy while strengthening brand reach across diverse geographies. Our Average transaction value ATV for FY26 stood at over 1 lakh reflecting both premiumization in our basket and the rising aspirational portion of our customer base. Our key operational metric includes average revenue per store of 137.7 crores, revenue per square feet of 4.51,000, net profit per store of 5.25 crores and inventory turnover ratio of 3.8x together under scoring sustained operational efficiency.
Now coming on the Q4 performance, Q4FY26 was particularly played a key role in helping us surpass 10,000 crore revenue milestone. Consolidated revenue from operations for the quarter grew 123% year on year to 3,544 crores driven by robust demand across retail, franchisee and e commerce channels. Gross profit for the quarter grew 80% to 344 crores, gross margin stood at 9.7%. The modernization in Q4FY26 was primarily driven by higher share of gold bars and coins, a lower state jewelry mix in the overall sales mix and a target customer acquisition discounts in the new market and a bit of the gains on the unhedged portion which are coming in the sales.
The higher sales of gold bars and coins contribution reflected a temporary demand shift towards gold as an investment rather than consumption and further elevated by geopolitical situation. However, with the Hon. Prime Minister’s appeal and the increase in import duty, we expect consumer behavior to gradually shift with a greater flow of old golds being exchanged for new jewelry over time. These gold bars and coins is also expected to find its way into jewelry demand as conditions stabilize. We therefore view the gross margin impact as largely one time and mix driven, not structural and remain focused on improving product mix and margins as our store matures.
EBITDA grew 53% year on year to 166 crores with EBITDA margin at 4.7 while PAD grew 46% year on year to 90 crores translating into a PAT margin of 2.5. Retail grew 102% year on year to 2,600 crores, franchise grew 132% to 430 crores driven by asset light expansion across tier 2 and tier 3 markets. E commerce grew 67% to 152 crores and other segments contributed 357 crore. Our same store sales growth for Q4FY26 stood at robust 86% year on year. Despite the sharp run in gold prices, we saw positive traction in volume.
Gold grew 27% year on year by volume in Q4. Silver volumes rose 37% year on year and diamond volumes rose an exceptional 155% year on year we are also pleased to share that during the quarter our long term credit rating was upgraded to A1 to A stable from A while the short term rating was reaffirmed at A1. The rating upgrade reflects the latitude stancing of the competition to provide healthy financial position and if it win the tools towards capital then that’s my national this purpose enhances our ability to access capital at competitive terms as we grow as we continue to scale the business.
In summary, FY26 has been a year of strong and profitable performance year in which we crossed the milestone. Revenue expanded our network to 78 stores across 36 cities delivered an EBITDA margin of 6.6 and a PAT margin of 3.8. As we step into FY26 with strong momentum, a clear strategic playbook and a healthy balance sheet to support our continued growth. While it is still early to fully assess the overall impact of the evolving situation and we continue to calibrate our strategy accordingly, we are currently maintaining a guidance of 13,500 crores revenue along with an EBITDA margin of 7 to 7.5% and a PAC margin of 4% for FY27.
However, depending on how the market situation evolves during the ongoing quarter, we’ll update the guidance if we the next quarter. We believe our strong operational execution, improving business mix and resilient demand environment position us well to navigate the evolving landscape. As we step into FY27. We do so with strong momentum and clear strategy Group map With that, we now conclude our opening remarks. We can open the floor for questions. Thank you so much.
Questions and Answers:
Operator
Thank you. We’ll now begin the question and answer session. Anyone who wishes to ask question may press star and one on your touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assemble. The first question is from the line of Yuchi Shah from Vimana Capital. Please go ahead.
Rajiv Bharati
Hi, thank you so much for taking us through the presentation. I just had one quick question. Due to the recent increase in customs duty and the advanced authorization that was announced yesterday on import of gold, do you see any impact on the sales or margins on account of this?
Saurabh Gadgil
Yeah, thank you for the question. As far as the advanced operation is concerned, it is mainly for exporters, people who are importing gold for exporting jewelry. We don’t fall in that category so it’s not applicable to us. Our business is purely domestic as Far as import duty is concerned, it’s directly passed on to the consumer so it will not have impact on the margin but it may have a positive rub off is it may induce people to buy less of bars and coins which typically carry lower margins and may push the interest further to gold jewelry by exchanging old jewelry for new.
So we are hoping that the jewelry sale will see a further uptake in the year and would be a positive contribution to margins.
Rajiv Bharati
Thank you. Thank you sir.
Operator
Thank you. The next question is from the line of Yashonan Priya from Headrest Public. Thank you and over to you.
Rajiv Bharati
Hi. Hi team. Thank you for taking my question. Yash from Edelweiss this site. So thanks for the detailed press release by the way. So I have few questions basically in the press release as you already mentioned about the gross margin impact because of different advertisements or the schemes we provided. So earlier you have guided about the BTL like 1.5% we budget for advertisement cost. How should we think about budgeting ATL like what you provide as a scheme because we are entering into new regions.
So how you guys budget for the same.
Saurabh Gadgil
Thank you for a question. This was not regarding more about advertising spend it was on the trade discount offers which we had for the Guri Parva and primarily for a foundation and gratitude day. So these offers were discounted on making charges. So we had a fixed making charge of 399 rupees per gram which costed the company in the range of around 40 to 45 crores. So this is what is the impact and this is a one time impact for Q4 so we don’t see this impact being carried forward ahead guiding on the on the A and p spent both Atlantic 1.5 is what we would stick to or in fact we would try to go a little lower considering the year wherein we are seeing the import duty where the focus will move more toward exchanging old gold for new gold.
Rajiv Bharati
Got it, got it. Which means ideally going ahead the schemes which we will provide on different festivals will also be included in this 1.5% budgeting.
Saurabh Gadgil
Absolutely.
Rajiv Bharati
Got it, got it. And my second question, please correct me if I wrong but basically the lifestyle business was not in our base and that is right now 5, 6% of our revenue which is like 30% plus studied ratio. So ideally still yoy the decrease in student ratio if I if I adjust for lifestyle the student ratio has decreased more in the core business. So is my understanding correct? And follow up on that any assessment you would like to provide how to think about this
Saurabh Gadgil
Yeah. So the lifestyle business is like a. Around a 70 crore business. So it’s only a 0.7% of the entire turnover. It’s not what you’re talking in the range of, you know, 30%. So out of, out of, out of this around 30% would be studied. So it’s a very small portion of the entire student business.
Rajiv Bharati
Got it. Got it. Thanks. Thanks for taking the question. Thank you.
Operator
Thank you. The next question is from the line of Bharat Gyani from MC Research. Please go ahead.
Rajiv Bharati
Yes sir. Thank you for the opportunity. So first question is the. What was the inventory. The proportion of inventory raising in and what is your plan going forward in FY27? Because the typically we have seen when the inventory hedging is on the lower side there is, you know, a fluctuation in the margin which is not liked by the markets. So just wanted to understand your strategy on the hedging side. What the proportion was in FY26 and what is, what is your plan for FY27? Thank you.
Operator
Ladies and gentlemen, the management line has been disconnected. Please hold while we quickly reconnect them. Ladies and gentlemen, thank you for being on hold. The management line has been reconnected. Thank you. And over to you Mr. Please continue.
Rajiv Bharati
Okay, so I’m audible now.
Operator
Yes sir. Hello.
Rajiv Bharati
Yeah. Yeah. Okay. So my question was regarding the proportion of aging that was there in FY26 and you know, what is the plan for FY27? Because as we have seen like you know, when the aging is. Is on the lower side typically it leads to margin volatility which is not liked by the markets. So that was my first question. What was your hedging proportion in NHA 26 and what was your plan for EPA 26?
Saurabh Gadgil
Hi Bharat, I would like to take this question for you. So as Sourabh has already explained that our monthly sales is in the range of 600 kgs of gold on a monthly basis. We at the end of March 26th we are covered for 1300 kgs of gold on the hedging through various GML’s and MCX and other instruments. So this is 67%. When I talk about last year FY25 quarter four we were at 57%. So there’s an improvement of 10% year on year on the quarterly basis. Year on year it’s a 10% improvement. Now if I go back to quarter three this year, FY26 we include from 57 to 63%.
So that’s a gradual increase which we Know, we don’t want a margin volatility in our business. So we there’s an endeavor to completely mitigate this and bring this hedging to over 70%, 75%, maybe 80% right now. What has happened also in the last year that the margin and the premiums on the MCS has rooted has gone up to 15, 20%. It was blocking a lot of the cash. There was a cash burden on from that point of view. If we lock the margin, this was very expensive and we also needed funds for the operation.
If you block everything there, then the funds get dragged up there. That’s even considering that to cut down the volatility in the margins, we have improved from 57 to 67 already in this year. And that also you will see the margin which was there in FY25 had in bigger shares of unhedged and respective to this year.
Rajiv Bharati
Okay, so this 67%. Just to hop on this further, the 67% you gave, that was for quarter four. Actually I wanted the hedging margins hedging portion for the entire FY26 like Q1, Q2, Q3, Q4 combined. What was for FY26 and FY27. So you have already given an indication that you’ll probably try to move to 75 to 80%. So you just wanted aging number for FY26 entire year.
Operator
Ladies and gentlemen, the managed one has been disconnected. Please hold while we quickly reconnect them.
Unidentified Participant
Sam. It. Ladies and gentlemen, we have the management line reconnected. So could you please go ahead and repeat your question? Mr. Manju Bashini, please go ahead and repeat your question.
Rajiv Bharati
Hello?
Unidentified Participant
Hello. Yes. What is the question? Yeah,
Rajiv Bharati
This is, this is from Mental Research. Yeah. Sir, my question was that with 67% hedging percentage that you gave, that was for quarter four. So I wanted the hedging proportion for entire year FY26. So all the four quarters combined, what average was the hedging proportion for entire FY26?
Saurabh Gadgil
So last year in quarter four last year we were at 57. So we gradually increased to 63 in quarter three, then 267 in quarter four. So on an averagely basis we were at around about 60% for the full year.
Rajiv Bharati
Okay. Okay. And this we plan to take it to 75 to 80% in this year. FY27. Right.
Saurabh Gadgil
Further we plan to take it to 80% to remove the complete volatility in the margin.
Rajiv Bharati
Okay, so this 80% will be by FY27 or will it take more time
Saurabh Gadgil
We are already at 67, 70%. So this is what we want to continue ahead. So. So next year which we should be at 75 to 80.
Rajiv Bharati
Okay, okay, answer the last question from my side. What is your sense that because of the customs duty increase how will it impact the demand in the short term? And any comments will make pool you understand.
Saurabh Gadgil
We have already launched a program called Suvarnam Swaraj where we are trying to encourage people to come up with old gold lining lockers lying into homes to make to remake into new jewelry. This entire year the flavor will be towards that. I’m expecting that the sale of coins and bars will go down drastically. Prices have gone up and we’ll see a lot of exchange gold coming in. It would be beneficial because it will come up with making charges studied. I think diamond should be doing well for the year.
So I don’t see impact, you know on the business. But yes, bars and coins I think will definitely have an impact.
Rajiv Bharati
Okay, thank you and all the best.
Saurabh Gadgil
Thank you.
Operator
Thank you. The next question is from the line of Palvi Deshpande. Please go ahead.
Unidentified Participant
Yes, just wanted to know what is the share of the old gold exchange mix and second what would be the share of customized.
Saurabh Gadgil
So old world today is around 40% of the entire business. And we’re expecting that the old gold trend picks up. We should be around 50% plus as far as old jewelry to new jewelry is concerned made to order again is at around 30, 35%. I think that should continue at the same level. Maybe if we’re looking at a greater Exchange Old Gold maybe 3,4% can be a further rise in the make to order business. And overall we are seeing that jewelry contribution in the overall mix would definitely see an increase in this financial year.
Unidentified Participant
My last question would be what would be the share of. I mean you mentioned in FY25 there was some inventory gains. So if you could share your absolute amount it would help us in the analysis. And the absolute amount of FY26 and 25F5.
Saurabh Gadgil
So Q4, FY25 the gains were in the range of around 70 crore. Wherein if you look at Q4 of FY26 the gains were grade 120 crores. So as we increase hedging the gains have come down.
Unidentified Participant
Right. Thank you sir.
Operator
Thank you. The next question is from the line of Uncle Aurora from Invade Research. Please go ahead.
Ankur
This
Rajiv Bharati
Call will be recorded. Yeah, hi sir, I’m audible.
Operator
Yes sir. Yeah, please go ahead sir.
Rajiv Bharati
Yeah. So sir, I had few questions. So what Is our volume growth in Q4. And if you can share your outlook for volume growth for the next year.
Saurabh Gadgil
So on the. On the gold as in category we have grown on the quarter. On quarter on a yearly basis. Q4, FY25 versus Q4 FY26 27%. On the entire gold segment, silver we have grown 37%. Diamond we have grown 125%.
Rajiv Bharati
Okay, sir. And if you can just highlight what will be the outlook volume
Saurabh Gadgil
I’m talking about here. And also like Deepak had mentioned before, the same store growth also has been, you know, quite strong. So it’s a combination of a new store and the same store growth. So in volumes we have grown by 27% in gold volumes.
Rajiv Bharati
Understood, sir. And any outlook on volume for the coming year FY20 channel.
Saurabh Gadgil
FY27 volumes are a percentage of jewelry and bars and coins. I think bars and coins would see a slowdown in this year. So it’s very difficult to talk on the exact volume side. But we feel that margins which come from making charges should be healthy. And I think when you look at the level of gross margins, EBITDA and Pat, I think the guidance can be on that front. Net volumes which include jewelry and. Exactly. To quantify right now is difficult because we have just been. It’s already been a week after import duty has been hiked.
So let us see how much of new gold is being fresh. New gold is being bought.
Rajiv Bharati
Understood, sir. Understood. I think another question would be. Sir, you had earlier guided for a 12,000 crore top line for FY27. But in your initial opening comments you have mentioned for 13,500 crores of top line. So what would be driving this higher growth? Or why have we revised our guidance upwards? What would be the driving force for this?
Saurabh Gadgil
For the year ended March 2026, we are guided for a 9,500 crore top line. We crossed that by a thousand crores and we are at 10,700. The good factor has been the response which we received outside Maharashtra primarily in UP where the non Maharashtra state may contribute 10% of the entire business. Also the same store growth has been very healthy. So if we looking at these positives we feel that 12,500 can be stretched to 13,500. And that’s where the guidance is coming from.
Rajiv Bharati
Understood, sir. That would be really great, sir. Another question would be on the side. I think our B2B bullion sales have increased significantly. So how should we think about this segment going forward? And if you can explain the nature of this business
Saurabh Gadgil
See this is not B2B. You know pre IPO we had, we had a component called, you know, old gold which was sold for refining. So we used to sell gold to refinery and purchase back new gold. As of September 30, 2024 that has been discontinued and post that we have not been, we have not had any sales of refinery gold. This primarily this year the hike has been due to people interest in gold as an investment. So we have added a lot of new consumers especially in Q4 of this year which are looking at investing in bars and coins.
So These are all B2C sales. They are not sale before B2B. But the hike has been very high and with our strong penetration in Maharashtra, we have been able to garner a lot of new customers and hence the gold bar, gold coins and what we call as gold vedney or gold rings which in pure gold is what has really led to a sharp rise in bars and coins which we also see as an investment for this year. Because people normally use bars and coins to make new jewelry. This would be advanced for US registry. People should come with that to convert that into new jewelry.
Rajiv Bharati
Understood sir. And just a follow up on this. Like I think your gold bars and coins share was around 40% in Q4. So that has impacted our margin. So what would be the contribution going forward from this gold bars and coins segment?
Saurabh Gadgil
We always were in the range of 25 to 20. Previously it was 20% with gold going up as interest it had gone to 25, 28%, Q4 had been etc. We had gone to 40%. But I think this year it should again stabilize back to the 25% or even lower level. And that is what we have been always saying that this year is going to be a year of a lot of new jewelry being bought. Using old jewelry and bars and coins as a category this year will see a slowdown. So we have to give an estimate. We should be at around 25% for this financial year.
Rajiv Bharati
Got it sir. That would be great sir. Lastly, my question would be on the front of qip. I think you had told that the progress is going on. So if you can just highlight what’s the progress on the qip?
Saurabh Gadgil
I mean in terms of progress. Like I said, there’s an enabling board resolution which is till end of August. So that is where we are. We haven’t really thought on going ahead on that front at this point of time. We had a good year. So as we move ahead now, there’s something which we want to explore. But it’s not a QIP is not impedent for us to grow our business. The business is self sufficient. So that’s something which we will address as we as time goes by. Looking at the market condition and looking at the sector.
Operator
Sorry for interrupting Mr. Ankul. Please rejoin the queue for the more questions. Thank you. The next question is from the line of Nitin Jain from Fair Value Equities Advisory. Please go ahead.
Rajiv Bharati
Yeah, thank you for the opportunity. So my first question is the clarification that the management has provided for the margin drop. Quite a few reasons appear more structural than one off. For example discounts that you mentioned on Foundation Day and Deeparwa, there is a high likelihood that they might repeat next year. Also discounts you mentioned in the new market, as the company expands to newer geographies, there is a likelihood that they will also continue. And the last point is the franchisee share.
As we open more and more franchisee stores open source, that share also should inch up. So can you elaborate why we think of them as one off?
Saurabh Gadgil
That’s a good observation. But if you look at it from the entire year’s perspective, this has not affected the entire annual margins. When you look at the margins for entire year this has already been absorbed into it. This was primarily Q3 versus Q4 and Q over Q where we have seen that we had a lot of franchisee opening in one quarter. That has led to the franchisee margins being low has impacted margins. You have rightly mentioned that discounts are a part of it. But this foundation day offer where we offered gold making at 399 and the gratitude offer, these were only one time activities.
They are not the annual calendar activities. Now that.
Operator
Ladies and gentlemen, the management line has been disconnected. Please hold while we quickly reconnect them.
Unidentified Participant
We have the management line reconnected so you can go ahead.
Saurabh Gadgil
Hello.
Unidentified Participant
Yes sir. Go ahead sir.
Saurabh Gadgil
Yeah, yeah, sorry for this all dropping. Yeah, go ahead please.
Rajiv Bharati
Yeah. You were in the process of answering the question, sir.
Saurabh Gadgil
Yes, so I was saying that these instances for the year are kind of not strategic like I mentioned. Firstly the impact is only half a percent when it comes to the discount side of it. What really has been the major driver which has got margins down has been the bars and coins which typically are in range of 25 to 26% which for Q4 had gone to 40% because of people’s interest in looking at gold from the investment perspective. And they’ve garnered a lot of new customers on that front. We also expect that These customers would eventually convert into jewelry in the coming years.
The gratitude day sale and the foundation day were only one time activity. Gratitude mostly of thanking people for the 75 store success of PNG. So most of these numbers would not be strategic and wheat. And that’s why if you look at the entire year they have been factored into and the entire year numbers margins look on track as what we have projected.
Rajiv Bharati
Right. So you mentioned as one of the corrective measures you’ll be calibrating. So can you elaborate how exactly you would be doing that?
Saurabh Gadgil
Sorry,
Rajiv Bharati
You mentioned in your clarification that you’ll be calibrating the gold coin sales, gold bars and coins and you reallocate the capital towards jewelry. So can you elaborate how exactly you will be doing that?
Saurabh Gadgil
It is being done by the industry where jewelers are encouraged of not selling more than 5 grams gold coins to consumers on a B2C level and looking at more lighter weight jewelry and looking at getting old for new. So encourage people to buy or to exchange old gold jewelry for new. So I think this would be effort across the industry. Also the import duty hike will have a natural impact on gold investment demand going down. And this is what we are seeing that jewelry demand is kind of inelastic but investment demand is elastic and when duty has gone up, we’ll see a dip in people’s interest in gold as an investment in bars and coins.
Rajiv Bharati
Right. My next question is on the guidance for FY27. We have guidance for 13,500 crore. So what impact do you think this import duty hike might have on this guidance?
Saurabh Gadgil
Import duty hike primarily would have an impact on the bars and coin sale. Like I mentioned before, we don’t see an impact much on the jewelry side. So if you look at our business in terms of sales in the Red Bull, there’ll be a portion of bars and coins which would see a negative impact and I think that should be in the range of 2022 percent of the total sale. The balance 80% would be would be jewelry and that’s where we are seeing we see a jump. So I think they would not give me a positive impact if any on the as for import duty is concerned, we are also buying lighter weight jewelry and lighter carrier jewelry.
That’s something which is on the cards for this year. So we’re looking at 18 carat Jew jewelry also 14 carat jewelry. So all this will ensure that the jewelry sales remain intact and would not have a negative impact on the margins. Yeah. I would also like to add few numbers Here for you for a better understanding. So in particular retail we have closed down the year, it’s around about 8,000 crores. And the next year targets and the guidance for the retail which we have taken under in our AOP is around about 9800 crores which is a 23.
Now if I break this down into how this has come up. This year we have seen an SSSG of 43% primarily driven by the wrap up of the stores which are not matured for more than one year and two years. For the stores which we have opened for more than three years we have taken an SSH of in the range of 5 to 10%. For the newer store, the wrap up is anyway annualized. So that’s very healthy and similar to one and two years when we increase our stock turnovers that. So this 22, 23% on a base of 8,000 crores is very much achievable.
And we also don’t plan to open too many cocoa stores this year.
Deepak Vijay
Yeah, Hello, Hello, Are we audible?
Operator
Yes, I audible the lineage drop. I’ll promote the next participant, Chaudhary from principal please go ahead.
Unidentified Participant
Hello, Hello.
Deepak Vijay
Yeah, yeah, go ahead.
Unidentified Participant
Yeah, yeah. So my question is that you know we have been seeing that inventory turnover ratio has been declining for us compared to the previous year. And also if we see the trend, I just wanted to understand, is it due to that, you know, the investment done in the new stores that is why the inventory is high and is why our turnover ratio has been dropping? Yeah,
Saurabh Gadgil
Absolutely, you are right there. So if you see most of our stores are open in Q4, we have opened Roundabout 8 stores in Cocoa category for the in Excel Q4 itself that has what is not matured into the sales right now. And that’s why you see an impact impact on the stock turnover for the year. But having said that, 3.8% in this industry is an early stock term. So you know, that’s how we see it. And also the value has increased on, on the entire gold as in as a commodity. So having considering all those factors, 3.8 is what we have closed the year on.
Unidentified Participant
But
Saurabh Gadgil
Finally, yeah, you are right, the impact of new new stores which we open in H2 is the primary driver of this coming down compared to last year.
Unidentified Participant
Okay, so I just wanted to ask then, you know, currently, if we see that you know, mature stores in our flagship stores, so if you see that over the past two, three years have our inventory turnover ratio that has been stable or have we seen decline or you know, Increase on
Rajiv Bharati
Has been gradually being
Saurabh Gadgil
Flat and declining a bit but not too significantly because of the quarter four this year which we have taken. The stock store which opened predominantly in quarter four is been the major impact in the stock turnover.
Operator
Sorry for interrupting Mr. Prince. Please rejoin the queue for the more question. Ladies and gentlemen, in order to ensure that the management is able to address question from all the participants in conference please limit your question to 2. The next question is from the line of Jenny Bharat from Prudent Corporate Advisory. Please go ahead.
Ankur
Hello. Am I audible?
Operator
Yeah,
Saurabh Gadgil
You are. Yeah. Please go ahead. I
Ankur
Just wanted to know the gross margins for the gold coins and bars segment and the normal jewelry segment.
Saurabh Gadgil
So the we on the gold bar and coins we operate on a very thin margins in the range of a half a percent to 1%. And on the normal jewelry, on the gold jewelry which is not extreme, which is not non studded jewelry is in the range of 12 to 13%. 12 and a half to 13% is the right. Right number two to place on the margins for the bull jewelry. So there’s a delta of 12-12 and a half percent between bullion gold bar and the jewelry. So what we have been trying to also explain that that’s with the major driver for the margin drop.
And once the sale goes down which is anticipated for the next quarters in next year because of these recent appeals from the honorable prime minister the margin should anyways pick it up. That’s the guidance
Ankur
And the franchisee gross margins. I think I heard it was around 2 to 3%, am I right?
Saurabh Gadgil
That’s right.
Ankur
Okay. So they are kind
Saurabh Gadgil
Of. Franchisee is like a ball through there. Now all the costs are owned by the franchisee but the gross margins are almost in the. Are almost like net margins.
Ankur
Okay.
Saurabh Gadgil
And it also improves the return on capital employed heavily with a lighter balance sheet.
Ankur
What would be the ROCE on our own store than the Foco store segment?
Deepak Vijay
So our ROC for this year just a few moments. Is The ROCE is 30.5% for this year and ROE as 21% for this year. And on the franchisees pretty much there is no investment. So everything which flows through contributes to the uptick in the ROC and roe. Hello.
Ankur
Okay. No further questions from my side, sir.
Deepak Vijay
Okay, thank you.
Operator
Thank you. The next question is from the line of Paras Kakar from Finance. Please go ahead.
Rajiv Bharati
Yeah. Am I audible?
Operator
Yes, sir. Please go ahead, sir.
Saurabh Gadgil
Yes.
Rajiv Bharati
Yeah. So my question is the peers in the. In the industry they have reported their gross margins EBITDA like in the normal range as compared to Q3. So I just wanted to understand what has led specifically the decline on our side. Is it like on the jewelry segment we are facing some competition, the demand is low. Just wanted the insights on it.
Saurabh Gadgil
So I think we’ll have to recheck that for at your end also. But what we have seen the result the big players who are leading the industry the gross margins have bobbed for the for the quarter FY26 versus last year’s quarter is in the range of 600bps. That’s what has the numbers been which we have looked at translated also the other players also have shown the similar trajectory in terms of the margin drop especially in this quarter. Like I mentioned it is primarily due to the change in product mix which I think is primary.
Q4 had a lot of interest in gold investment which are transferred into into a big rise in bars and coins. So that really has been one of the major factors. But like we said, like we given the guidance going ahead, I think this should be neutralized.
Rajiv Bharati
Okay. Thank you.
Operator
Thank you. The next question is from the line of yes so public. Thank you. Please go ahead.
Rajiv Bharati
Hi. Thanks for the follow ups. Just a couple quick follow up. Like you said 10% of your revenue is from non Maharashtra region or state. So just want some like to like number. Like what is the make to order mix and inventory turns over there. I know it’s too early to get any view but still any like to like number
Saurabh Gadgil
See make to order is a little slower there than compared to Maharashtra. But still it’s a good proportion. Around 22% of the entire sales outside Maharashtra are made to order. While in Maharashtra the number is at 30% to 32%.
Rajiv Bharati
Got it. And inventory turns.
Saurabh Gadgil
Yeah. So I will take the question on the annualized stock turn. While most of these stores have open only for like six months, eight months into the year at the close of the year we have already crossing stores which are in Bihar at 1 up at 1. Surprisingly and to our surprise also indoor has performed at 1.4 and annualized basis until now. So these are very healthy for the new stores outside Maharashtra. And this gives us encouragement to also venture into these geographies. So like our guidance we had projected around 0.8 top trend for the year one.
So yes we have surpassed the guidance and all the in primary up Bihar and MP are doing analyzed stock terms of one in the first year itself.
Rajiv Bharati
Very encouraging. Thanks. Thanks a lot for answering.
Saurabh Gadgil
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Sandeep from LKP securities. Please go ahead.
Rajiv Bharati
Yes, thanks for taking my question. Wanted to check on the outlook of newer store openings in upcoming FY27. If you can just throw some light on the newer store which are going to come in terms of number of stores as well as on the non Maharashtra store count in FY27 how many stores you are planning to open?
Saurabh Gadgil
Yeah. Hi, I will take the question Sandeep. So in our outlook we have planned for five cocoa stores, two PNG legacy stores and three light style stores. The locations which we are venturing into is in Gurgaon strengthening our position in Lucknow. And we have also venturing into Gujarat. We will see now with the new strategy what happened. But these are the newer locations which we are venturing into. Most of all of them which we have planned this year is outside Maharashtra. So we plan to open five Coco and 20 franchisees for this year.
So like I mentioned we still on the asset light model for the year. So of 25 stores we’ll try to do 5 to 7 cocoa and the balance would be 4co. But we’ll be expanding further standing in the state of up, Bihar, np but adding. But adding Gujarat this year. And we’ll be also looking at you know Gurjao which again is a. I mean neighboring to UP but Haryana.
Rajiv Bharati
Okay. Okay. So overall you. You just to confirm Is it 25 stores? Right. And 20 must be approximately 4:34.
Saurabh Gadgil
So we also have you know a lot of. A lot of demand for franchisees. So right now evaluating it looks on track.
Rajiv Bharati
Okay. Okay. Oh okay. Thank you. Thank you so much for the taking my question. Thank you.
Operator
The next question is from the line of Bharatiani from MC Research. Please go ahead.
Rajiv Bharati
Yeah. Thank you for the opportunity once again sir. So just two questions from my side sir. One you said that the proportion of gold bars and coins in quarter four was close to 40. But I wanted that figure for entire year after 26. What was the proportion of gold bars and coins in our overall sales? Hello. Hello.
Saurabh Gadgil
Yeah, hi. So in the overall year my old bar is in the range of 33%.
Rajiv Bharati
Okay. And so one more thing this related to this QIT we. I mean the purpose of QIT was that we will raise obviously capital for growth and also bring down the shareholder promoter shareholding to be 75 requirement. But then since so I just wanted to check on the promoter shareholding. We have time till September 26 or we have more time for that because
Saurabh Gadgil
Okay. On September 2024. So we have time in September end of 2027. Okay,
Operator
Thank you. Thank you. Constraint. We take this as a last question. I now hand the conference over to management for the closing comments.
Saurabh Gadgil
Thank you, everyone. We truly appreciate all the participants for taking the time out to join us today and for thoughtful and insightful questions. We hope you’re able to address your queries to your satisfaction. If you have any further queries, I would like to know more about the company. Please feel free to reach out. Our Investor Relations Partner, XB4 Advisory. Wishing all of you a wonderful evening ahead. Thank you so much.
Operator
Thank you. On behalf of Noir Wealth Management Ltd. That concludes this conference. Thank you for joining us. You may now disconnect your lines.