Senco Gold Ltd. (NSE: SENCO) Q4 2025 Earnings Call dated May. 30, 2025
Corporate Participants:
Suvankar Sen — Chief Executive Officer
Sanjay Banka — Chief Financial Officer
Analysts:
Madhav Agarwal — Analyst
Videesha Sheth — Analyst
Vishal Gutka — Analyst
Devanshu Bansal — Analyst
Bhavya Gandhi — Analyst
Satyajit Sen — Analyst
Pallavi Deshpande — Analyst
Deepak Lalwani — Analyst
Presentation:
Operator
Please wait while you are joined to the conference. The conference is now being hello, ladies and gentlemen, good day, and welcome to the Senco Gold Limited Q4 and FY ’25 Earnings Conference Call hosted by Antique Stock Broking Limited. As a reminder, 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 the conference call, please single operators by pressing star then zero on your touchstone phone.I now hand the conference over to Mr. Madhav Agarwal from Antique Stock Broking. Thank you, and over to you, Mr Madhav.
Madhav Agarwal — Analyst
Thank you. Yes. Hi, good morning, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Mr Suvankar Sen, who is the MD and CEO of the company. And we also have Mr Sanjay Banka, who is the CFO of the company. I shall now hand over the call to the management team for the opening remarks. Over to you, sir.
Suvankar Sen — Chief Executive Officer
Thank you. Thank you very much, Mr for introducing us. So good morning, ladies and gentlemen. We would like to welcome all of you for the update call, for the performance of Limited for the financial year ’24, ’25 and the end of Q4. We are happy to inform you that the Q4 of FY 2025 has seen a strong growth in total sales of approximately 21%, where we have seen that in the gold jewelry segment, we have grown by 20% in terms of value. However, because of the increase in gold price, the volume got impacted with a degrowth of 6%. But that is in terms of the gold jewelry numbers.
But the good part that has been extremely encouraging is the growth that we have seen in diamond jewelry where we have seen a 38% growth in terms of value for diamond jewelry and a 21% volume growth in diamonds. That has led to an increase in the start ratio. And as we ended the nine months, we were declining a cut ratio of 10.5%, but thanks to the effort by the team and the The continuous new designs and collections that kept getting launched in the month of January and February, we could take our touch ratio to 10.9% as we ended the year. And if you look at the overall year of ’24, ’25, we have seen a value growth in diamond jewelry of 15% with a marginal growth of 2% in terms of volume for diamonds. And for the whole year, the gold jewelry has seen a value growth of approximately 20% with an impact of volume de-growth of 4%. So that has been the broad major category-wise sales for the whole year. Now we all know that the prices of gold has been on an upward trend for the whole financial year. But while there has been challenges in terms of the volumes getting impacted, we have seen that the consumers were looking for jewelry within their budget, within the weight range. The weight ranges have been under the pressure because prices went upwards of 30%, but there has also been a shift from along with the 22 carat gold jewelry and a tendency of the consumers to buy more 14 carat diamond jewelry or 18-carat diamond or plain gold jewelry. So there is this gradual shift of priority getting lower to fit it within the budget of the consumers happening and it is especially with the modern Western design that we are seeing such a shift happening. Now coming to the profitability. The adjusted PAT for the standalone numbers has been INR207 crores, adjusting to a PBT impact of INR57.4 crores due to the duty of custom duty that we have seen, the impact that had happened in the month of August. So adjusting to that, we have got adjusted PAT of INR207 crores. And if you look at the unadjusted numbers, it is INR165 crores. But you know, something that we are grateful to the team for their effort and the results that has been a strong jump of INR62 crores for quarter-four from the INR103 crores of PAT that we have seen in — for the nine months 31st December 2024. In terms of opening of new stores, net-net, we have seen 16 stores getting opened for the full financial year. We have opened six franchisee stores, nine Tenco company-owned company-operated stores and one stores, which is the diamond perfumes that are bad. So basically focusing on diamond, one. So that’s been the 16 stores that we have opened in the full financial year. Another encouraging number for us to see is that the non-Ease business has grown by 23% to approximately INR1,230 crores. So that’s been the increase of the non-lease business. In terms of number of footfalls, while we have seen that the gold prices have been on an upward trend, people are looking for lighter-weight jewelry, the weight ranges are going down. Wedding has been a segment that has driven the business major part of the year as well. But in terms of measuring of the customer footfall, we have seen that with the LTL and the new stores that has happened, we have got a 17% increase in the number of footfalls overall and the 5% increase in the new invoices. And the new customers that got added has been upward of 2,50. So to be more exact, it’s around 2,53,000 new customers. The ATV that we have seen, which was 63,700 in the previous financial year has gone up to around INR73,000. So there has been around a 15% increase in ATV. But here you can see that the increase of ATV has been 15%, but the gold price has moved up above and that is where we are seeing the lighter-weight jewelry happening. And in terms of the gold rate, we have seen that when we began the year, the gold rate was about 6,300 and as we ended the year, it was around 9,000. So that’s the overall gold rate that we have seen from the beginning to the end-of-the year. In terms of new designs that got added in gold jewelry, we’ve always been continuously trying to launch new designs. So we’ve added more than 25,000 designs in gold jewelry and more than 4,000 to 5,000 designs in diamond jewelry. Another very interesting aspect, the numbers that we need to look at is the old gold exchange. So because the prices were on an upward trend, people were feeling the pinch of having a little lower, I would say, budget and they were exchange their old and we have seen that the old exchanges went up to close to 39% to 40%. So that has been a substantial jump, if I recall, maybe two to three years back, the old gold exchange was only 25% of the overall sales and that has become around close to 40% of the overall sales. And so that also has helped, I would say, the business to continue to grow and keep getting the customers coming back to the stores. If you look at the more initiatives that we have taken in Q4 and what has been the reasons for the growth and the numbers in Q4, I would say that the wedding sales because we were in the month of January, February until mid of March and even the early weddings of April, May, I think consumers were utilizing these months-to buy their wedding jewelry for the season. And also we had the Valentine’s Day and the birthdays and anniversaries of many, many people. And I think the love season as we Call-IT, has led to an increase in the sales of diamonds. Even in the month of March, it was Woman’s Day and it gave us an opportunity to connect to our women customers. And we launched multiple collections throughout the quarter. You know, to name a few, the very berry collection, which had the designer kind of jewelry with colored stones and diamonds. We’ve got the kind of fancy shaped solitairs, the ice cube collection, we had the lightweight jewelry facets of love, the and rose and various new designs in the segment. And I also must say that the contribution of the solitaire diamonds, because what we are seeing is that the last financial year, though 90% above is small diamonds that we sell. But for this stores, 10% of the segment, we have seen a growth in the sales of Solitail, which is above $0.20 of about 26%. So the fact that the prices of solitaire had come down and but consumers thought it as an opportunity to buy and we are also seeing an upward trend in the price of diamonds now that the war is about to be over and I think consumers are feeling the keen interest to buy. So as we are towards the end of May and we look at the numbers as what has happened in the last two months of this particular new financial year, we are seeing around an 18% to 19% growth in terms of values. So I think even though the gold prices are close to their all-time high, the faith and the trust of consumers towards the commodity gold and silver has been strong and consumers are looking for an opportunity whenever they have the ability to buy or the prices are something of within the range we are planned — wanting to and planning to buy the jewelry. Along with that, the encouraging aspect is the interest on diamonds. So the diamond prices are gradually starting to rise and even our sales for the diamond jewelry segment has like the way we have seen in the Q4 has continued to perform in that manner. Our aim for the whole financial year, again, to reiterate, as we are having the call and we’ve crossed two months of the year we’ll continue to be having a top-line growth of 18% to 20% and we will try to endeavor to increase our bottom-line as well with the focus on improving the diamond sales. In the last financial year, we have seen that during the first-half of the year, the interest on buying diamonds were lesser, but as the year was ending, the interest went up. So our focus and endeavor to improve the diamond sales will continue to remain. And with the high coal price, we will try to bring in more efficiency in the business in terms of analyzing the data, what kind of products are selling in which stores, what price range. And in this high-growth scenario, we’ll try to optimize our stocks and ensure that the top-performing designs and the categories are continuously supply for higher sales. And in terms of the endeavor towards profitability, I think we will be working towards having and achieving an EBITDA of anywhere between 6.8% to 7.2% and our endeavor to achieve a PAT of 3.5% to 3.7% shall continue to remain. And I think in this dynamic, the market scenario, a very, very important thing is to focus
Operator
On lightweight jewelry and to ensure that our new-generation customers continue to engage with us and connect with us. And as far as the wedding segment is concerned, which will remain about 35% to 40% of the overall business. The handcrafted jewelry, that, that is the need of the consumers for wedding segment within their budgets will be a focus area for us as well. And as far as the franchisees are concerned, we intend to add a minimum of 18 to 20 stores with a higher focus on having more-and-more franchisees.
So minimum 10 franchisees we will be adding and about eight to 10 company-owned company-operated stores with a strong focus. As always, we’ve been mentioning on East India and North India. So with this, I would like to-end my update for this particular Q4 of the financial year ’24, ’25. And at the end of it, I would like to thank all of you for your continued support, encouragement, faith and guidance in terms of how do we ensure that in these volatile market scenario and the geopolitical uncertainties that we see in the world, we will continue to connect with our consumers and acquire more new and new customers.
Thank you very much. And I will request Mr Banka, our CFO, to kindly say a few words.
Sanjay Banka — Chief Financial Officer
Yeah. So thank you very much, sir. I would like to add one more context. So we have reported the standalone and consol vote number, our financial consolidated financial include the results of Gold Lintage, Gold Article Private Limited, Gold Jewelry Trading Limited, the Dubai entity and Limited. So we are commencing the new business in Limited where the results are not — they are just building up. So while the standalone growth — standalone top-line is INR6 crores to INR58 crores and the standalone adjusted fact is INR207 crore. In the consol financial, the revenue has increased to INR6,328 crores and the adjusted PAT is INR201 crores. The INR201 crore is the impact of the three subsidiary.
So this is message number-one. Now if you look at the adjusted EBITDA at the standalone number, the adjusted EBITDA has improved from INR381 crore to INR427 crores, so a 19.7% top-line growth, a 12.2% growth in adjusted EBITDA. Similarly, improved — the EBIT has remained range-bound from INR365 crores to INR369 crore, the finance cost has marginally increased as the borrowings have increased and we’ll discuss in detail and the adjusted EBITDA has improved significantly from INR188 crore to INR207 crores, so 10.1% growth in adjusted EBITDA, which is 3.3% adjusted PAT margin and we have given the outlook for the future EBITDA margin, which our MDS said between 6.8% to 7.5, which is in-line with our early projections and an adjusted PAT of 3.5%.
So during the year, we have given you upgrade of 16 stores. Along with the revenue is INR1,150 crores, which is around 18% of the total revenue. Rescue has given range-bound, but and it has grown very significantly in-quarter four and we are hopeful and confident that is a growing interest, the ratio, which we have been looking for a 15% — 15% range in three to four years, we’ll achieve that. The rate of interest is a very important factor. So you are aware that the gold metal loan, there was some scarcity in February and March. So the gold metal loan rate has increased for — from around 3.6% to 6.6% and the blended rate has increased from 5.9% to around 7% in Jan and in February-March.
However, we are confident that the way it is stepping up, the — there will not be any significant impact of the gold metal loan price. If we look at the balance sheet, the balance sheet has — size has increased from INR4,3715 crores to INR247 — INR3 crore — INR1,000 crores increase in the balance sheet level, which is primarily on account of increase in inventory. So inventory has increased by INR819 crores. So primarily it is an increase in inventory and increase in bank FDA margin. So the bank FDA margin increases due to a due to higher borrowing and higher hedging, et-cetera, which has been funded by network. So the QIP funds which we raise, the QIP funds have been — have been used for working capital purposes and a part of funds are still in FDA, which we use in course of time and gold metal loan has increased by INR272 crores.
A very important point we want to raise is that our gold metal loan, which was earlier appearing in the financing activity in-line with the industry and discussion with the statutory auditor, we have reclassified it as a part of operating cash-flow, which is visible in the face of the balance sheet and the operating cash-flow has also improved. So during the year, there is an increase in inventory. So still the operating cash-flow is good. The inventory quantity has also increased overall, which we’ll discuss in detail. The financial ratios which you see in the presentation, particularly the return-on-equity and ROCE. Optically, this will look to have a downward trend. But what we want to explain is that these are the cost of investment.
Whenever you grow the ROE and the equity will not yield you the 20% or 21% return in the same year. So this — we look at our return ratios in a long-term fashion, we are a growing company, while my existing portfolio will give me 20% to 20 plus percent blended return, but the new portfolio will give me high returns. So with that, I close my discussion and if I’m just a slide something kindly ahead or we can post it for any Q&A session now.
Suvankar Sen — Chief Executive Officer
Right. No, just to add to what Mr Banka said that our same-store sales growth has continued to be in the range of 15% to 16%. So that has been a very strong number. And even though the stores have been existing for a long period of time, whether it is our rural customers who are coming and buying their products or new customers that are getting aligned to the brand and getting engaged with the brand, we continue to grow for our same-store sales growth of 15%. And also, as I mentioned to you that the old gold exchanges that have gone up to 40% of the overall sales, out-of-the old gold that comes into our system and I’ve been saying it before as well, more than 60% of the old gold is kind of the non old gold that is coming to us, which is again re I would say reinstating and reimposing the fact that the shift from the unorganized segment to the organized brands continue to remain in this scenario as well and consumers are preferring to buy from brands and organized.
So with that, I think we are opening up the discussion for the Q&A. So feel free-to ask questions. Thank you very much.
Questions and Answers:
Operator
Thank you. Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question.
Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sheth from Ambit Capital. Please go-ahead.
Videesha Sheth
Yes, hi, good morning. Sir, my first question was, I mean, I do understand that margins need to be looked at from an annual basis and we have to ignore the quarterly, but just to understand the cost a little bit better, what led to the 25% or 27% increase in the employee spend and on the other hand, you’ve seen 13% decline in the other operating expenses for the quarter.
Sanjay Banka
So, as you have said that our turnover, which was around INR1,362 crores is one of the highest in the last three years. So last year it was 1130 and previous year was 830. You could — Q4 turnover. So you are comparing this number against Q3 or Q4? That is first question.
Videesha Sheth
Okay. Sorry, I mentioned Y-o-Y. Y-o-Y.
Sanjay Banka
Y-o-Y. Correct, correct. So Y-o-Y itself, the top-line has grown by almost 20%, right? So now the — what we see is that it is never exactly symmetrical because lot of stores come up in — at a different point of time. So maybe when You are looking at quarter-four number last year and then the cost base has increased. So when the cost base increases to, let’s say by 16 stores or — and which also have come during quarter one, two and three, the cost base is not same. The previous year also if the store is opened in — even in Q4 in February or March. So this year, the impact will be for the full three months, then there is increment because we are investing substantially in our people — in our training. And also in order to promote as the market is competitive, we have to — we have to keep our employee motivated with incentive and rewards. So this is the impact of the overall scheme which you will see in the financings got it. So just to clarify, would there be any hedging-related expenses on the OpEx side that’s been accounted for? No, no, no. No. Hedging-related expenses we have explained in detail kindly referred to my document. Hedging expenses, depending upon whether it’s a fair-value hedge or a cash-flow hedge, it will either get adjusted to cost-of-goods-sold or it will be separately disclosed in financials as other income or other expenses. So if there is no other income or other expenses, they will never be under the general lobbings. Can you refer to my detailed document on hedging. Yeah. Thank you. Sure. Moving to the second question, what led to the increase in inventory days from I think around 170 in FY ’24 to 11925 and how should one look at it going-forward? So inventory days, see, we had said earlier that we are a growing company, the number of stores is increasing, particularly, if you look at competitor, I understand the inventory days are in the range of 170 to 180. This is still 166, right? It has increased from 151. So as we are looking-forward to increase the diamond sales, the diamond inventory days increases. And as you go hyper-local, right, with a higher spread outside if which is 20%, there are experiment which you have to do with a hyper-local continuously supple. So these are the regular process, but these are — to my understanding within the industry norm and slightly better than the top players in the industry.
Suvankar Sen
And also, because of the increase in gold price, you know, we have seen that the sales have also been seasonal. And like for example, if I consider the whole year, the April — just to summarize if you see what has happened throughout the year. In the month of April and May, it was the election season and we had seen that the overall sales even though we had grown, it was against various challenges in the external markets. Then when we looked at June, July, prices had gone up.
In August, the prior — the duty got cut and there was a bumper sale-in the month of August and we were running short of inventory because there was over, I would say, unexpected sale. Then in September, before the festive season, prices shot up and there was a little bit of slowdown. Then in October, for Diwali and, we had seen a very good sales happening then November-December was wedding. Then again January, February, March, the wedding sales continued to happen and the diamond sales picked-up from the month of October, November up to say March.
So the whole year has seen a lot of ups and downs in terms of the growth in sales or the slowdown. And with the increase of 30% to 40% in gold price, we can only reduce the inventory at the stores to a certain extent to optimize, but we also need to be ready to cater to the consumer demand whenever the sales are in-demand. So that has been another reason I would say that the gold price rise and the perfect planning that we are continuously trying to do is making this a number of days what it is.
Sanjay Banka
If I can add, like as you rightly said, gold prices, which was in the range of 76, 39 to 7675 in Q3, they improved substantially to 7689 to 9012. That means 775 ending increased to 9012. That is one factor and once again we have to continuously grow. So the March number is always higher because this is a readiness for XS and we — we have already talked about our sales. So the March number in ’20 and September number will always be higher than September ahead of years. So this is an investment in future. We don’t look at as idle inventory.
These are clearly investment in future and when we are looking our long-term goal, we are very confident that we are managing our inventory very efficiently.
Suvankar Sen
This time, was also in April rather than in May. So we have to been ready for inventories in the month of March itself.
Videesha Sheth
Understood. So just as a small follow-up to this, by when do you think the OCEs could inch back to, 18% 20%, is it a three year, four-year five or timeline that you have in mind?
Sanjay Banka
See, we are looking at 16% to 17% in next three to four years, right? And even during QIP and IPO, we were cognizant that as we raise funds, so we raised the IPO funds and QIP funds and PE funds. So these have got diluted, but yes, our existing portfolio is giving us this return. Three to four years, it will range back to 17%, 18%.
Videesha Sheth
Thank you. Just last one question on from my side. Can you just elaborate on what initiatives can be — are we undertaken to improve the organic growth profile in the non-East region of the country?
Suvankar Sen
That’s. So rather than getting too much into the strategy, we will tell you that in terms of brand-building, marketing expenditure, connecting with the consumers, creating designs as per you know, the local taste and preferences, I think these are the ways in which we are continuously, you know, gathering and attracting consumers in the non-East segment.
And if you look at the numbers overall, we have grown by 23% in the non-East segment also. And as the brand is getting stronger and the awareness level of the brands is increasing, then the inquiries and the leads for franchisees in the tire two, three, four towns and cities of the non-East segment of India is also increasing and we would like to grow into the smaller towns using our franchisee model as well.
So I think that at one end, we have the brand-building, at one end, we have the product strategy. And if I may say that in terms of the diamonds in terms of design for diamonds and in terms of trying to be as competitive in the diamond segment, we are trying our level best to remain attractive to the consumer. So I think that product strategy, branding and distribution, these are the broad three methods by which we are penetrating and growing in the segment.
Videesha Sheth
Thank you. That’s all from my side.
Operator
Thank you. We’ll take the next question from the line of Vishal from ASK Investment Manager. Please go-ahead.
Vishal Gutka
Yeah. Hi, Svankar and team. So a couple of questions from my side. So first of all, interest in Gold Metal loan after seeing a spike up around 6%, 6.5%. Can you give a flavor what is happening as of now? What are the rates as of now ongoing rate?
Sanjay Banka
See the ongoing rate ongoing rate has reduced from just one minute. The ongoing rate has — which was higher because there was very short supply of gold in the market, it was around — it was around 6.6% — from 3.2% in Jan, it increased to 5.3% in February and 6.6% in March. In April, it has come down by 100 basis-points. May we are still talking. So there is a good availability and then considering if all the cold one which was there, the uncertainty has come down. So the blended interest cost is are higher even today at 7% as against 5.9% earlier.
So we are — we are given to understand from the banks that this will further come down. So, if I to take risk for the entire hello. That will then amount to around, let’s say 1% on INR1,000 crore is INR10 crores on a base of INR10 crore on a top-line of around INR2,7500 crores. So not a major issue now at all.
Vishal Gutka
But anywhere doing right in you are to settle down to original levels or it will remain elevated above the original levels?
Sanjay Banka
As I said, it is very difficult to out the. I think that it will still be 100 basis-points higher than the earlier rates.
Vishal Gutka
Got it.
Sanjay Banka
But it may come down. Let’s wait-and-watch. We will give you an update once the quarter ends.
Vishal Gutka
— got it. And second question is on the diamond pricing that Suvankar was highlighting. I think diamonds national diamond prices started moving up. So broadly soon, if you can highlight what kind of price increase that you have seen last one year and what is the exit-rate as of now? So that — because none of the jewelers have highlighted at this point that with regards to they are seeing a big traction in terms of what do you call diamond jewelry sales coming back-in this fashion.
Suvankar Sen
I’m — no, but I think that in terms of sales of diamond jewelry, what we had seen in the H1 of the year, H2 of the year has been that much more stronger and as the volume growth that you have seen happening in Q3 or Q4 and May, there is this traction. Maybe the others will soon update you know as and when they think it will fit.
But that shift and that sales that we are seeing is for two reasons. One is that the high gold prices making consumers look at 18 carat and 14 carat jewelry with diamond as an option to buy. And the second is that the sentiment which I again maybe repeating that oh, diamond prices are not a good investment and the prices have come down.
Those were the sentiments in the first-half of the year for 2024. But I think even at the international level, we are seeing a marginal increase in the diamond prices of solitaire and the smaller-sized diamonds were not that much impacted in terms of price fall anyways. So I think that there again, we are looking at the demand happening and coming back. So have grown in terms of prices, I think around 4% to 5% from what it was maybe a month or two months back and that is the good sign.
Just the public news about diamonds, we had one on GBR shutting down their diamond company, which are small signals that you know they are also wanting to focus on growing their natural diamond business. So this is how I think it’s all — all the market is playing out. Diamond will remain a segment to look at for the fashion segment and natural diamonds will be a segment to look at for your special location.
And the small-sized diamonds is something that is selling anyway more in natural diamonds and that in terms of design and how people bring out the concept, it will continue to be something to look at. And at such high-level of gold price, let me tell you that purity in terms of 14 and 18 carats will become only — it will only grow and diamond jewelry should be growing at these high gold prices. So that is my take on it.
Vishal Gutka
Got it. Got it. And last question from my side., the growth rate of 18% to 20% looks relatively on the conservative side, given that we have seen 30% increase in gold price on a Y-o-Y basis plus 10% store addition you’re planning to do for the entire year. So your thoughts on this?
Suvankar Sen
See, I will only last year, if I say that we were INR5,30 crore INR200 crores and we had gained for 18% to 20% growth. And today we ended the year with INR6,000 close to INR6,300 crores. So that is where we are saying that we will continue to commit in terms of what we feel is possible and we will try to work hard towards achieving and the numbers higher to that. But as far as the expectations are concerned, no, the gold prices have moved up, but we are also seeing that the volumes are not moving up yet unless the gold prices correct and consumers are looking at jewelry, which is of lighter-weight and lower purity.
So that is something that we need to also keep in mind and the new stores will continue to get added. So it will be wonderful that if other growth rate comes more than what we say, but for all of your analysis and numbers, I think 18% to 20% is a good number to begin with.
Vishal Gutka
Got it. Got it. Thank you, and team. Wishing you all the best for FY ’26.
Suvankar Sen
Thank you. Thank you. Thank you very much.
Operator
Thank you. The next question is from the line of Devanshu Bansal from Emkay Group. Please go-ahead.
Devanshu Bansal
So hi,. Good morning. Congratulations on a good execution and an encouraging margin outlook for FY ’26 as well. Sir, my question is on the growth capital, right? So balance sheet is a big due to obviously there is a strong back-in gold. So — and we are planning to add about eight to 10 company also as well, right? So interestingly with the QIT raise, the debt-to-equity ratio has now come down to 0.9x versus 1.1x last year. So I just wanted to check as in from a growth capital perspective, would that be a more attractive option as of now, because our balance sheet sort of allows us the leverage option or what is your sort of on the growth capital side?
Suvankar Sen
So, you know, from a strategic point-of-view, obviously, we are aware that opening more-and-more franchisees is a much more wider thing to do and the correct thing to do in this kind of a scenario. And to give you a kind of a perspective that there are lot of inquiries that are getting generated in terms of franchisees also, we are analyzing, checking, locations, but all kind of analysis to get the right partners and franchisees.
So from a strategic point-of-view, it will always be better to open more franchisees than your company and company-operated stores in this scenario and that will be our plan. But if we need to open 18 to 20 stores, we will make sure that keeping our policies in-place, we will open minimum 10 franchisees. If that becomes 12, then obviously, we will have lesser number of company on company-operated stores or say five to six, but we need to get the right partners to get that as well.
So if I may say eight to 10 company on company office store and eight to 10 franchisee, that number can become 6 and 13 or 14 as well. But the balance sheet stress in terms of taking more-and-more funds. One thing we feel is that today’s day and time, the gold prices have moved up by 30% to 40%. So the assets that we are holding in terms of inventory are disclosed, the value of those assets have gone up. But if you look at in terms of quantity of gold that is there at the stores and the stocks that are needed to be there to sell to the consumers, we are not building up higher quantities, but we are rather optimizing in ensuring that kind of product is kept at the store, which is most sellable.
So that efficiency and optimization is continuously happening. And so that worry of the balance sheet building up is not really there. And yes, our sales team are focusing on building up more-and-more franchisees. But we will only inform to all of you on that as and when we are doing it. But as we begin the year, we will try to have a conservative approach of eight to 10 stores and eight to 10 franchisee.
Devanshu Bansal
So it’s a fair point, but my — I just wanted to have some basic strategic behind the debt-to-equity comfort levels, right? So currently, obviously, we are at level versus the industry levels also. So as of now, since the cash is limited on the balance sheet, so what is the comfortable level of debt-to-equity that the company would be targeting for. Yes, that’s what sort of say sir.
Sanjay Banka
So if you look at the peak debt-to-equity, March ’23, it was 1.7, March ’22 was 1.3 and last year it fell to 1.4 the 1.2. So it is about what is right at a particular point of time and this industry been highly cyclical and the gold price, so the decision has to be taken at a moment of time, but the decision has to be taken in right perspective. I think if I give you a straight answer, we do — we won’t raise any funds by way of equity to meet any demand and pressure for the growth.
It will be managed from internal accrual and debt-equity ratio and continuous inventory efficiency — efficiency improvement is the core mantra. So the CRM hyper-local inventory efficiency movement, improving inventory ton, they will continue to be our strategic pillar to manage the growth aspirations.
Devanshu Bansal
That is pretty clear, Mr Bankar. Secondly, I wanted to touch upon another aspect is around the customer growth, right? So we have been expanding stores by almost 9%, 10%, but even if you see for the complete year, I guess customer growth or invoice growth has been about 5%, 6%, right? So answer Is this — how do you read this? I mean, is this just because of inflated gold price because the general fear is also that this industry may lose its shield because customers are not coming, maybe they may a sort of lease sort of purchasing the jewelry and all those things. So what are the steps that the company is sort of taking to improve the customer level growth or the invoice level growth. Obviously, gold price increases, volume decrease that is understandable, but what are the steps that as a company that you do is going to be invoice today?
Suvankar Sen
There, which is like it is how you are looking at it. So one is that the invoices number of invoices has grown by 5% to 6%. But if we look at the footfalls of the consumer with the new stores getting added or even in the same-store sales growth that we are seeing around 14% to 15% in terms of value, the footfalls have gone up by almost 16% to 17%.
So therefore, the perspective is that the consumers are becoming diverse. There is one set of consumers who are adding to any of the jewelry, you know companies is for wedding customers. They have weddings in their family, so that consumer is coming, they’re buying for their wedding or the family is buying jewelry, they are exchanging their old gold and taking a new design. So that is the one segment of customers.
And the other segment of customers is where they are buying gold or diamond for their everyday basis or their special location. So that has been the diversity of the customer in terms of what they are coming and buying. Volumes have taken a hit because the gold prices have gone up about 30% 35%. So people are looking at a lighter-weight. But if I may say it doesn’t really change the broad perspective and fundamentals that, oh, my God, prices have gone up and we will lose customers. Jewelry is something that will continue to remain a very, very strong, I would say, segment for wedding, for gifting.
And Devanshu, one more aspect that you’re looking at for us at least we are also having lot of other low-ticket size options in terms of silver and fashion jewelry. So that has also been a great opportunity for us to keep on connecting with the customers. If I look at silver as a category, while we have spoken of gold and diamonds, we have seen that the silver, utensils and silver items and jewelry has grown by almost 20% and above in terms of volume as well. So there has been that as a segment also where consumers are coming and buying in their small-ticket size.
We are exploring opportunities of having shopping shops in various departmental stores, stores keeping our silver jewelry segments there. So I don’t see it as a worry. We just need to solve the problem of the customer of creating jewelry, which is within their ticket size and budget.
So footfalls have been mostly growing. And again, I’m telling you that 21% growth in terms of footfalls even in this challenging time. So therefore, what is happening is that in when the prices suddenly shoot up, we should less the footfall at the stores. But when the price is correct or there is a special location happening, then we see that everyone wants to buy during that period of time. So I think that we need not worry on the way that you are looking at.
We just need to wait for the right time, be ready for the right moment. And I think coming this Q2 and in this scenario, we need to expect a very positive monsoon. And once the festive season starts, so this time the Navaratra starting the end of September. Diwali is in the middle of October.
So once we are over with, say, July, from August onwards, the festive will start and we are very positive and optimistic about the festive season? Understood. Sir, just last small follow-up here. As in gold prices have sort of moderated a bit. So can you shed some light as in if Q1 so-far trending in-line with the 18% to 20% expectation for FY ’26, just small comments. Yes, yes. Devanshu, I had said it in my speech as well.
So we are growing at around 18% to 19% and as we are towards the end of May. This time in April, we had a very good upset India and New Year. So therefore, it has been a very strong number and that is how it is.
Devanshu Bansal
Pretty clear, sir, all the best for becoming year ahead. Thank you so much for taking my question.
Operator
Thank. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit your questions to two per participant. Thank you. The next question is from the line of Gandhi from Dalal and Broja Stock Broking. Please go-ahead.
Bhavya Gandhi
Yeah. Hi, thanks for the opportunity. Sir, my first question is regarding the advertisement and marketing spend for the quarter. My question comes from because our revenue grew 21% on a Y-o-Y basis for this quarter, but our other expenses have fallen 13%. So what has driven lower other expenses? If you can provide some clarity on that front?
Suvankar Sen
And expense have fallen, right? Is that what you’re saying?
Bhavya Gandhi
Yeah, I just want to understand whether in the other expenses with the advertisement is a major component, right?
Sanjay Banka
Yeah. So, if you look at our total advertisement expenditure, which was INR103 crore last year had increased to INR106 crores, right? So while — so see, this is one expenditure of like investment where the management has a discussion and it is calibrated based upon market demand, right?
So if we see very good demand, then there is no need to spend money. So we are coming — our expenditure is lesser than 2%. It has increased. Your question is on the quarter versus last quarter, right?
Bhavya Gandhi
So yeah.
Sanjay Banka
If I’m on Slide number 42, serial number four and you are comparing fourth line, so INR31 crore last year was INR17 crore last year, right, this year. So actually it is not exactly comparable. There are timings of expenditure and sometime if I have already done the brand-building in Q3, so there is no need to spend exactly. It’s very — it is very dynamic expenditure. If I’ve incurred a good business outside Bengal ahead of the entire year, I will not spend the current year. So we prefer to look this expenditure for the whole year. Every expenditure is not seen in on a quarter basis. So you can look at HR expenditure in the quarter as revenue for the quarter, but not the marketing expenditure.
Suvankar Sen
And then also, you know, in Q3, in Q3, we had the Navarati, the festive, the wedding, everything was there in Q3 and we wanted to ensure that in Q4, we bring in more efficiency and we could see that there was automatic traction from the consumer side in January and February.
So we were very conscious of bringing efficiency and we control the budget accordingly. So that’s how we look that is.
Bhavya Gandhi
Got it. And sir, just wanted to understand the unhedged portion, which is there in our books basically — and if you can just provide a scenario in which if the gold prices remain stagnated or if they are falling, do we see any inventory loss on our books? I understand majority is hedged, but on the unhedged portion, how much is it at the moment? And if you can throw some light on the gold price movement?
Sanjay Banka
We are — we have discussed a lot about — we have discussed a lot about our hedging policy strategy. I will request you if you come to look at our detailed document. But to give you an answer, we’ve always said we are 80% to 100% hedged, right, 60 to 80, right? Sometime it can cross 80% also and that is at the inventory level. So there are two aspects of hedging. One is on the inventory level hedging. So when we talk about the losses, on the inventory, there will be no loss. It will be unrealized loss, unrealized gain if the position will be squired up in the next quarter.
The question is that whatever gold we have sold-in the current quarter, assuming a six ton — six ton of gold, assuming a 1,500 kg of gold sold-in a quarter, whether you have purchased the same quantity or not. If I sell gold at a higher price and purchase at a lower-price, then there’ll be unusual realization gain, which will go into the gross margin, right?
So there is no unusual inventory gains or losses or realization gains or losses. So let us look at the hedging as a part of our gross margin as an integral to our business and not as a separate activity.
Bhavya Gandhi
No, so I mean, logically asking, say, for example, if next one or two years if gold prices remain stagnated or maybe for — I understand that you replenish the quantity of gold in terms of KG, that is the right understanding. Is it right? But if the gold prices remain, if you can just throw some light on the demand, how does the demand move-in a gold price downward scenario? And how does it overall, maybe for two years, how do we see the gross margins or EBITDA margin for that intermittent period?
Sanjay Banka
Okay. So if the gold price falls, there will definitely be immediate demand because customers will come in the, right, while those who have purchased will remain in sock. But if the gold price remains staggerant, a stable prices, then the demand will increase and in a stagnant prices, hedging impact will be lesser.
It will give — it will give you more stable gross margin. So in case of stable — stable gold prices, the gross margin will be stable. In case of volatile — volatile gold prices, there may be a timing gap in the gross margin despite best of the effort and they can move from 1/4 to other, but over a period of three to four quarters, you will see a smooth margin.
So to answer your question, we have — we look at a stable EBITDA margin of like whatever our MDF said 6.8 to 7.2%, if I can make it slightly better 7% to 7.5%. So we look at it 7% to 7.5% every quarter, but it may not happen. But if you look at three to four quarters, it will surely happen and that is a past trend. So the only anomaly which we saw in the quarter two and quarter three this year was due to the custom duty impact. So that’s why you saw a slightly lesser EBITDA margin, which has — which has become stable in the current quarter. There may be very one-off impact, let’s say, the sell is lesser or if there is one season where you have to offer a more discount.
So that’s all. But 7% to 7.5% EBITDA margin, one can very comfortably build-in the model, that’s our understanding.
Bhavya Gandhi
Okay. Fair enough. Thank you so much. I’ll get back-in the queue. Thank you so much.
Operator
Thank you. Thank you. Thank you. We take the next question from the line of Satyjit Sen from Value Research. Please go-ahead.
Satyajit Sen
Yeah, hi. Am I audible? Hello. \
Suvankar Sen
Yes, sir. You’re audible. Are you audible, sir?
Satyajit Sen
Yeah. Hi, thank you for taking my question. I just had a couple of questions. First of all, what percentage of the inventory do we get from third-party manufacturing? Right.
Sanjay Banka
Third-party as we — if you look at our presentation, third-party around 20% to 21%. If you look at our quarterly presentation, you will find that number. Around 20% to 21% is — we buy credded jewelry, balance around 70% to 75% is from the carriers. So in-house manufacturing is 4% to 5%.
Satyajit Sen
All right. So another simple question on that. Some of the third-party manufacturers, one of them is listed is earning around net margins of around 3% to 2% to 3%, similar to our company. So my simple question is that why don’t we do our own manufacturing to add to our own margin.
Suvankar Sen
So we are doing our own manufacturing to a certain extent but in order to get the variety of designs and every manufacturer has there certain strong USPs in terms of designing and style and category of jewelry. So like for example, sitting with our head office in Calcutta, I have always been saying that we have a big strength in terms of getting access to our and for the industry, I think in the long-run, that will give us a hedge because most of the carriers working across the country comes from the villages and small towns in and around Calcutta.
So that is a strength in which we are strong in the handcrafted jewelry and the access to. But again in terms of designing machineries, certain new technology, there are other players who have invested in those. So we need to get that variety and design from them. But also as a company, we have our own units and factory also, which is trying its level best to utilize this full capacity and make machine-made and modern jewelry along with the handcrafted jewelry that we are making from the job workers.
So it’s there very much in our plan, but it cannot happen overnight, it is going to be a gradual process. Okay. All right. I mean, in future, how much of — I mean today 5%, are we planning to increase it to about 10%, 20% maybe in future? No, I don’t think — no, no, I don’t think so.
We have — see as the volume increases, it will be a matter of time, but we have said to be 5% — maximum 5%. I am looking at one of the other players.
Sanjay Banka
So your question was why not a manufacturing? So a bit to the, there is risk of trade receivable, okay. So if you look at the one other such player, we are almost — 80% of the net-worth is stuck in trade receivables. So 80% of network. Okay. So that is one. So while — so it is a matter of cash-flow also, then there are other issues. I think everyone has a business strategy, we feel that we are very comfortable. We have run this business with competence and expertise in our business. We don’t look at here and there and we have huge opportunity in the current business itself. We are looking at a 90 billion market. A bit — a B2C market is always better, it is valued more because you have a direct reach to the customer vis-a-vis B2B business where you are dependent upon us or on a retailer.
So I think that is where the marketplaces more value on any business which is direct reach and connect to the customer.
Suvankar Sen
And from a supply-chain perspective, we are only going to grow in the future. We will need stocks in a timely manner. We will need the hyper-local design as we grow across the country. So if there are pluses and minuses, we need to balance it, but we will need the support of all our — these fellow vendors who we consider as vendor partners and we will need to grow together. That is how we are looking at it.
Satyajit Sen
Thank you. All right. Thank you.
Operator
Thank you. We take the next question from the line of Pallavi Deshpande from Sameeksha Capital. Please go-ahead.
Pallavi Deshpande
Yes, sir. Thank you for taking my question. Can you hear me?
Suvankar Sen
Yeah. Yeah, Paliv, hi. Nice to talk to you at a long-time.
Pallavi Deshpande
Yes, sir. Sir, I just wanted to understand the diamond portion of the inventory would be — would it be roughly 10% or
Sanjay Banka
It will be around more than 10%. So when we are talking at a more than 10% 13% to 14%, that would be the diamond percentage of the total inventory. Right. And sir, this big fall in the diamond prices in 3rd-quarter, which we saw, would we have written-down the inventory in the 3rd-quarter or was that included in a hedging loss of INR90 crores that you stated in 3rd-quarter? So see, first of all, headwind is done only on gold and not on diamond.
Secondly, the big fall which you are talking that has not happened on the — on the star and mela category, which we sell. So almost 85% to 90% of our diamond are below $10 to $12 where the price fall has not happened. Price fall has happened in a higher-end, let’s say solitaire and even if I call at $0.40 11 solitaire in that category, it has happened.
So we have not taken any hit on the diamond inventory. Rather last year, we increased our diamond prices. We’ve already grown almost 39% plus in-quarter four. This quarter we are also growing. So there is no question of us taking any hits on diamond price. We have rather built-up our diamond inventory during this crisis time. So we — our strategy is entirely different. When the market goes a different way, we take a view to take the leadership portion.
Pallavi Deshpande
And sir, my second question was again related to this — this hit in the 3rd-quarter that we had of exceptional hit. So that was a hedging loss on the gold jewelry is what you’re trying?
Sanjay Banka
I mean, see, in-quarter two and quarter three, we had taken a hit of custom duty and most of the other players have been custom duty. So that is going there. So apart from that, I will once again restate the same thing that we do hedging as a part of our business and we will continue to do hedging. Hedging will always have an impact. We don’t call hedging impact as a loss. So when the gold price rises, there will be — due to price rise, we will have a realization gain. And since we We are doing hedging, there will be adverse impact due to the hedging. We don’t want to Call-IT loss. It’s a part of the price rise gain and the hedging impact and hence you have to look at the gross margin and EBITDA from that perspective. Yes, our — our EBITDA margin has fluctuated earlier, which you’ve explained in detail, but it was disproportionate due to custom duty, it has stabilized and we are hopeful and confident and will try to give a very stable EBITDA margin to the market. But it will all depend upon the extent and momentum of volatility. And sir, I wanted to know what is the promoter stake, some conclusion and having calculating the promoter stake has been disclosed in our quarterly presentation, it is 64.3% 2% if I remember the number correctly, timely goes your quarterly presentation right between 64.33% on Slide 145.
Pallavi Deshpande
Right. And sir, lastly, the franchisee stores, I mean the spread ratio is lower there. So I wanted to understand what is the outlook on the stud ratio. Also in Tier-3 and 4, you are seeing more growth. So will that not impact the stud ratio negatively?
Sanjay Banka
See stud ratio, what we inform you is that 10.9% will be a blended of own store and franchisee store and a blend of various jones. So in one of the call earlier, we said that our own store — own store ratio is around the 14%, if I remember correctly, 13.5% to 14% and franchisee get to — and obviously franchisees working in Tier-3 and Tier-4. So there the diamond demand will be lesser, right?
So 12.2% is the number if I — is 12.2% and 8.6, this will blended. But incidentally, we have opened store in central region. The start ratio is 17% for a franchisee. Franchisee start ratio in central region is 17%, that is only a single-store. Again, otherwise in West Bengal, East and Northeast is around 8.5%, but our own store, Delhi NCR 15.3%. While the my rentional average is 12.2%, Delhi NCR is 15.3% and my Chandigarh store is very-high.
Even in, some of the store is very-high. So we clearly look at a very good stack ratio, it can go up to 18% also, while very conservatively we are saying 15% in next three to four years.
Suvankar Sen
And the new-store openings will be primarily out or how will it be primarily new stores opening will be a combination of north and East. So we will try to — like we say that 70% to 80% of the stores will be north and east of India and the remaining 20% of the stores will be in the West and South of India. So that is how we will be focusing on the growth part because as a strong — one of the strongest players in the eastern part of the country, we will want to penetrate deeper and deeper into the entire two, three, four towns and cities of East.
And North being our next core focus area, we will continue to through own store and franchisee, we will penetrate into the northern part of the company.
Pallavi Deshpande
That is. In FY ’25,
Operator
I’m so sorry to interrupt. May we request that you rejoin the queue for further questions.
Pallavi Deshpande
Okay.
Operator
Thank you.
Pallavi Deshpande
Thank you.
Operator
Thank you. We take the last question from the line of Deepak Lalwani from Unifi Capital. Please go-ahead.
Deepak Lalwani
Hello, sir. Thank you for the opportunity. Sir, first question was on. We entered the master franchisee agreement. So if you can explain how the business model is worked, how many online, how many offline stores, how is it online? And secondly, any investment that you need to do on the store inventory, etc? And is there a plan to take-up shareholding in this company? These are — this is the first question.
Suvankar Sen
Thank you. So I’ll just talk about the agreement. It’s a short-term agreement that we have done. And here as a master franchisee, we are managing the stores, we are the focus and you have to understand the strategic initiatives that we are taking in an effort to connect and target the new-generation Gen Z millennial customers.
So that is the strategic focus. And also through that focus area, we want to increase our diamond jewelry sales and the ratio also. So as a company with that broad thought process of acquiring new customers, new-generation customers, increasing the diamond jewelry sales, we are taking various efforts and initiatives and this is one such effort and initiative. And in the master franchise agreement, this is like one of those type of stores and it is only lightweight, fast-moving everyday wear jewelry with a higher share of diamond studded jewelry.
So yes, we will be investing and creating and producing more diamond studded jewelry and we will be investing in the diamond studded jewelry. And with this high gold price, as I said, we are looking at 14 carriage jewelry that is selling more, 18 jewelry selling more for office wear, everyday wear.
And I think that is where we want to explore the opportunity through this strategic tie-up with. And as far as your question on the future is concerned, I think that all I can tell you is that we are doing due-diligence and this is just a short understanding that we have done with them. But on further due-diligence and analysis, we will take a future decision. So that is how you would like to look at it.
Deepak Lalwani
Okay, understood. And if any other — any further decision is taken on this, what kind of capital investment would it be? Do you think that we will be acquiring to invest in dividing the brand because this brand has not been in or been in the market for the last two, three years. So what kind of investment that is one. And any impact on financials that we should expect because this is loss-making currently. Any impact on SENCO consolidated financials that we should expect because of the losses in Malaura in FY ’26?
Sanjay Banka
This is a UPSI information. At this juncture, these are strategic numbers. We will not be able to share these numbers. Let the bridge come, then we’ll cross it.
Deepak Lalwani
Okay. Sure. Sir, just on the
Suvankar Sen
View so we basically as and when things and decisions are taken, we will keep updating the market. So I think this is too early to expect our forecast and how the — anything will happen. So let us wait and then we’re for sure as and when things happen, we will have a discussion and update you on the same.
Deepak Lalwani
Sure, understood. Sir, on the balance sheet part, the debt and inventory, I understand that it’s seasonal, but how much more debt and inventory should we expect and budget for — for the new stores for the full-year?
Sanjay Banka
And see, debt, we have a limit of around, let’s say we are looking at around let’s say around 300 to 400 further working capital okay and let’s say around whatever PAT number. So a debt-to-equity ratio of one is to-1 or 1.2 is very comfortable. We are — this is clearly dependent upon the market size movement.
So when you compare the debt working inventory value, optically, it has increased by INR821 crores so but the but the goal — but the — it — a major part of it, almost INR500 crore out of this is due to rate variance. South of INR821 crore, INR500 crore is only due to rate variance.
INR321 crore is on account of new-store and diamond. So very clearly, now this impact has come on the balance sheet, which is — which last year has been funded by our QIT funds and borrowings. So if the price — if the situation remains — as the gold prices remain stable, which we expect it to remain in the range of INR3,300 to 3,500 for FY ’26, I think maximum 350 incremental borrowing is what you will look for?
Deepak Lalwani
Understood. Sir, last question on the volume growth in diamond that we saw in this quarter. Is it — is it like a one-time phenomenon or are we seeing growth continuing in Q1 as well? Why I’m asking this is because has lab grown or given a setback or has volatility In the prices given a setback? Just wanted to understand the growth outlook in the diamond sales
Sanjay Banka
May diamond price definitely Q4 was disproportionate because there was no-growth in the earlier quarters. And despite this growth, the stack revenue has remained in the range of 10.8%, 10.9%, which is similar to the last year. So while the value growth has happened, but the volume growth is only I think it’s some 3%, 4% overall.
Now, so similarly, diamond, I think one more large player has talked about entry into diamond. But long-term, we feel that Diamond will create new set of aspirants who will ultimately convert into a real diamond. So overall, as you say total 18% to 20% growth, obviously 14% to 15% SSG.
So this work has to be contributed by gold and diamond both. So on a space level, 20% of the maximum 15% to 20% of diamond growth we can look at, which will purely be driven by the volume. Price increase will not happen. So we can look at 15% to 20% diamond volume growth.,
Deepak Lalwani
Understood. On that number, if you can disclose what will be — what is our Q4 and FY ’25 gold and gold and diamond volume growth separately for Q4 and FY ’25.
Suvankar Sen
So the Q4 FY ’25, volume growth was in gold was minus 6%, but the volume growth in diamond was 21%. So that is the Q4 numbers.
Sanjay Banka
And the full-year number I have, full-year number gold volume growth is around minus 3% overall, which means around 38% price rise, 20% from a 21% degrow value rise, around 3% volume degrowth in the full-year and 2% diamond volume growth. This 2% diamond volume growth is not fully to our expectation. We look at around as I said, 15% to 20% volume growth. Otherwise, the growth has to come by increasing the prices for which the opportunity is not much. Okay.
Deepak Lalwani
Perfect. Understood, sir. Thank you for the — thank you for answering. All the best.
Sanjay Banka
Thank you. Thanks. Thanks a lot.
Operator
Thank you. We take the next question from the line of Pallavi Deshwande from Sameeksha Capital. Please go-ahead
Pallavi Deshpande
Yes, sir. Thank you for taking my other question. Just wanted to continue on that. Where will the new-store openings be a — sorry, wherever the new-store openings happened in FY ’25, which Tier-3
Suvankar Sen
Or was it more on the new-store happening man, out-of-the 16 stores that we opened, six were that happened in the smaller towns because that’s where most of our franchisees are opening. And once tenest store works in a metro city, tennis store and the remaining 8 to nine stores that we opened have been in the East, India, Calcutta, Delhi NCR so mayor also opened road was in the — if you Call-IT a tire 2 city.
So — but focusing on East and North India. Would it be more to say that because more metro and Tier-1, the phone stores? No, not more metro and Tier-1. I think that six stores was in Tier-2, 3, 4, 6 to 8 stores and 6 to 8 stores in Tier-1, Delhi NCR, Calcutta in and around Calcutta, suburbs, you know that is how you have to look at it. So more — as a franchisee model that we want to grow, again, the strategy is to focus on the smaller towns. So that is the way that we want to penetrate into the market.
Pallavi Deshpande
And this other life stores will be different from the next guidance that we’ve given.
Suvankar Sen
The, Everlight store, Everlight stores like we opened one store in last year as well. So Everlight store is a model in which the franchisee or our own, like we opened in the month of April, we opened one store in Metro station, right? So that is where we are trying to focus on the everyday wear lightweight jewelry below a ticket size of INR1 lakh, but focusing more on 20,000 to 50,000 price range and with a 50% to 60% diverse focus.
So that’s how we are looking at the stores.
Pallavi Deshpande
So that’s not included in the 16 number, right? The store number
Suvankar Sen
Which in the 16 numbers, ma’am, in the 16 number, the store is
Pallavi Deshpande
Sir, how many stores are there in FY ’25?
Suvankar Sen
How many stores was total there in FY ’25, one, understand. So if you go to this just one to five like stores, both to five. And you will definitely perform the number.
Pallavi Deshpande
And this number will be constant in FY ’26
Sanjay Banka
Also so store is five number which you’ve disclosed on Slide number 16. So I know, Everlight store will increase. See, it makes sense as we look for a lower-ticket items, as you want to reach to the youngsters and and millennials, we have to find where they are staying, are they living in the built housing society or they are on the field. So that way focus will also be overlide.
You can look at three, four more overlite stores out of 20. So 20 is a conservative number overlight, our inventory exposure is lower. So if you like know, we open in under his session we can we can open more. Okay, yeah, yeah. I request you and other esteemed guest on this call to kindly grace and visit our Metro, this stores, you will get a very fairly good idea. We have got other stores as well in Andrei, et-cetera, that will help you understand — greater understanding of our business model.
Pallavi Deshpande
All right. I saw it on the website, nice collection there. Just wanted to understand what any revenue target for this for the next three years.
Suvankar Sen
Ma’am, we are not having any separate revenue target for. We are right now putting it in within the target, but these are the strategies with which we want to increase our diamond ratio. So we haven’t specified any particular number yet. But then those stores have their own targets. So as and when the scaling up of the stores will happen and we are — we get set with the business model further stronger, we will start sharing these separate revenue targets for everyone.
Pallavi Deshpande
And the pricing, I mean carrot Lane, that would be the pure set, right? This is sort of said the fear that would be the pricing in terms of the overall the kind of designs and products that are there. But in terms of — and the further breakup, if we get into it, we will stay more competitive than our competition.
Yeah. And last question was on the passenger side.
Operator
Why I interrupt you? Thank you to time constraint, that will be the last question. I’m sorry now. Thank you.
Deepak Lalwani
Thank you.
Operator
Ladies and gentlemen, as that was the last question for today, I would now like to hand the conference over to the management for closing comments. Thank you, and over to you, sir.
Sanjay Banka
Thank you. Thank you. So we thank you all and we are very happy and pleased to report our results. As you said, the EBITDA margin is stable and we continue to look at growth. We continue to look at all the KPIs, particularly return-on-equity and return on capital employed and are cognient of our responsibility to give a superior return, which we will continue to work by calibrating the various business levers, financial, operational customer as well.
So with that, a lot of time from our side, including coming from RMB, right?
Suvankar Sen
No, so thank you all for joining the call. And once again to summarize that our quarter-four numbers compared to the previous year, quarter-four has remained very strong with revenue up by 21%. The EBITDA went up by more than 44% on previous year’s quarter to this year’s quarter. And And we have seen that with the increased diamond stack ratio, our margin for Q4 has also improved from 7.7% to 9.2 therefore, I think that the importance in today, we are in time is to stay and remain focused. We are aware of the various levers that will drive the business growth and the business profitability. And we are well conscious of the fact that in this increasing gold price, we need to create designs as per the need and the budget of the consumers, which we are very much doing and our sales team is engaging with the consumers. And as we enter this new financial year, we have shared you with our ideas, expectations, plans and we are confident that we will achieve the numbers in top-line and the bottom-line with the effort that we are making. So thank you very much and all the best.
Operator
Thank you thank you, members of the management. On behalf of Antique Stock Broking, that concludes this conference. We thank you for joining us and you may now disconnect your lines. Thank you.
Suvankar Sen
Thank you.
Sanjay Banka
Thank you. Thank you.