Earnings Call Transcript - Q4

AI summary - Q4FY26 consolidated revenue grew 66% to INR10,275 Cr; PAT up 118% to INR410 Cr - FY26 consolidated revenue INR35,740 Cr (+43% y-y); PAT INR1,350 Cr (+89%) - India business Q4 revenue INR8,990 Cr (+68%); PAT INR366 Cr (+97%) - Middle East Q4 revenue INR1,074 Cr (+37%); PAT INR21 Cr (+75%) - Candere Q4 revenue INR131 Cr (+368%); PAT turned positive at INR3 Cr - Board recommended dividend payout ~20% of FY26 net profit (~INR257 Cr) - FY27 plans: open 150 showrooms including 50-55 Candere; focus on franchise expansion - Non-GML debt in India reduced from INR1,300 Cr to INR300 Cr over 3 years; target zero in FY27 - Gross margins stable; Q4 margin impacted by product mix and seasonality - Akshaya Tritiya and wedding demand strong; April FY27 started well despite high base - Operating leverage and interest savings expected to support margins in FY27 - SSSG historically 20-30%, recommend 10% for 3-5 year projection - Middle East franchise expansion ongoing; 4 FOCO stores temporarily converted to COCO - Candere gross margins mid-30s due to >70% studded jewellery mix - Interest cost includes INR20 Cr one-off; expect INR30 Cr reduction in FY27 - Inventory management adjusts for gold price increases to protect ROCE - No store closures except one relocation; 7-8 hybrid store relocations in last 4 years - Franchise stores have lower revenue per store than COCO; both expected to grow - Promoter share pledge status unchanged past 15 months