Shanti Gold International delivered strong revenue growth in the second quarter of FY27, but the increase in sales did not translate into equally strong profitability. The gold jewellery manufacturer announced its September 2026 quarter results on November 3, highlighting robust demand alongside significant margin pressure.

Revenue from operations surged 73.45% year on year to ₹745.95 crore, compared with ₹430.08 crore in Q2 FY26. The expansion was supported by healthy demand from domestic and international customers and higher gold jewellery volumes.

The company’s gold volumes increased approximately 25.4% compared with the corresponding quarter last year. This indicates that physical business growth contributed to the revenue increase, rather than the improvement being driven entirely by changes in gold prices.

Despite the substantial revenue expansion, net profit increased only 13.5% to ₹29.56 crore from ₹26.04 crore a year earlier. The difference between sales and earnings growth highlights the pressure on profitability during the quarter.

EBITDA, excluding other income, increased 15.56% to ₹42.52 crore, compared with ₹36.79 crore in Q2 FY26. Although operating earnings improved, their growth remained considerably slower than the increase in revenue.

The EBITDA margin declined to 5.70% from 8.55% in the previous year, representing a contraction of 285 basis points. This was one of the most important developments in the quarterly financial performance.

Net profit margin also weakened to 3.96%, compared with 6.06% a year earlier. The decline indicates that the company retained a smaller proportion of its revenue as profit despite generating substantially higher sales.

The sequential comparison revealed additional pressure. Revenue increased approximately 4.1% from ₹716.38 crore in Q1 FY27, but EBITDA declined from ₹71.45 crore to ₹42.52 crore.

Sequential net profit fell approximately 41.4% from ₹50.48 crore in the June quarter. This demonstrates that the margin weakness was significant even though revenue continued to increase.

Shanti Gold operates as a manufacturer of gold jewellery, supplying products to retail partners across India and international markets. Its business combines traditional jewellery craftsmanship with modern manufacturing capabilities.

The company manufactures products across wedding jewellery and contemporary jewellery categories. Its portfolio includes designs intended to serve changing consumer preferences and different retail customer segments.

The first half of FY27 presented a stronger overall growth picture. Revenue from operations more than doubled to ₹1,462.33 crore from ₹722.85 crore, representing an increase of 102.3%.

First half EBITDA increased 29.22% to ₹113.97 crore, while net profit rose 32.52% to ₹80.04 crore. These figures demonstrate that the business generated higher absolute earnings despite pressure on profitability margins.

Gold volumes increased approximately 41% during the first half to 1,058 kilograms. Management highlighted healthy demand across domestic and international markets, with export revenue more than doubling during the period.

The first half EBITDA margin declined to 7.79% from 12.20%, while net profit margin weakened to 5.47% from 8.36%. These figures indicate that margin compression extended beyond the September quarter.

An important operational development was the commencement of commercial production at the company’s Marol manufacturing facility in June 2026. The additional facility strengthens manufacturing capacity and supports the company’s efforts to serve growing customer demand.

Management also highlighted encouraging market responses to newer jewellery categories, including Turkish jewellery, Mangalsutras and Cuban bracelets. These products support the company’s efforts to diversify its portfolio across traditional and contemporary segments.

During the September quarter, Shanti Gold raised approximately ₹99.83 crore through a rights issue. The issue comprised 46,43,471 equity shares priced at ₹215 each, including a face value of ₹10 per share.

The additional equity capital strengthens the company’s funding base, although investors should also consider the increase in outstanding shares when evaluating future earnings per share and shareholder returns.

Gold price volatility remains an important consideration for jewellery manufacturers. Changes in raw material prices, inventory requirements, product mix and customer purchasing patterns can influence revenue growth, working capital needs and operating margins.

The company’s manufacturing expansion and growing international business provide opportunities for further scale. However, the sharp sequential decline in EBITDA and profit indicates that improving margins will be important alongside sustaining higher sales volumes.

Shanti Gold enters the second half of FY27 with strong revenue momentum, higher gold volumes and expanded manufacturing capabilities. Its ability to convert sales growth into stronger operating margins and sustainable earnings will be an important factor in evaluating future financial performance.