Expenses outpaced revenue, cutting Shanti Gold's margin by 4.27 points
Consolidated net profit fell -41.44% QoQ as interest rose +49.30%; other income made up 15.76% of pre-tax profit.
Filed 03 Nov 2026, 20:40 IST · after market close · Shanti Gold International Ltd (SHANTIGOLD)
Key takeaways
- Consolidated operating margin fell 4.27 percentage points QoQ to 5.70% as expenses grew +9.07% against revenue growth of +4.13%.
- Net profit declined -41.44% QoQ to Rs 29.56 cr, while interest expense rose +49.30% and other income contributed 15.76% of pre-tax profit.
- Shanti Gold's 5.70% operating margin was 6.47 percentage points below the 12.17% median of 186 reporting Consumer Discretionary peers.
Price around the results
Revenue grew, but Q2FY27 operating profit fell sharply
Consolidated revenue rose +4.13% QoQ, but expenses increased +9.07%, cutting operating margin by 4.27 percentage points to 5.70%. Operating profit consequently fell -40.49% and net profit declined -41.44% to Rs 29.56 cr, with EPS down -43.00% to Rs 3.99.
Higher costs and interest drove the earnings decline
The cost overrun was the main operating issue, with expenses growing more than twice as fast as revenue in percentage terms. Interest expense rose +49.30% QoQ, adding pressure below the operating line. Other income accounted for 15.76% of pre-tax profit, while the tax rate eased by 0.28 percentage points to 22.36%, providing only a limited offset.
Margin lagged peers as sequential momentum weakened
The sequential direction was negative: operating margin fell from 9.97% in Q1FY27 to 5.70% in Q2FY27. The latest margin was 6.47 percentage points below the 12.17% median for 186 Consumer Discretionary peers that had reported the quarter, placing Shanti Gold 40th from the bottom.
Management outlined capacity and product expansion
Management said the upcoming Jaipur facility is planned to add 1,200 kg of annual capacity, taking total installed capacity to 7,900 kg per annum on completion. The company said its Marol facility supports growth in Turkish jewellery and new offerings such as Cuban Bracelets and Mangalsutras. The consolidated results were filed after market close, so the market response was not yet part of this report.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹746 cr | ₹716 cr | +4.13% |
| Other income | ₹6 cr | ₹2 cr | +257.14% |
| Expenses | ₹703 cr | ₹645 cr | +9.07% |
| Operating profit | ₹43 cr | ₹71 cr | -40.49% |
| Operating margin (%) | 5.70% | 9.97% | — |
| Interest | ₹8 cr | ₹6 cr | +49.30% |
| Depreciation | ₹2 cr | ₹2 cr | -10.50% |
| Profit before tax | ₹38 cr | ₹65 cr | -41.66% |
| Tax | ₹9 cr | ₹15 cr | -42.38% |
| Net profit | ₹30 cr | ₹50 cr | -41.44% |
| EPS (₹) | ₹3.99 | ₹7.00 | -43.00% |
Operating margin of 5.70% compares with a Consumer Discretionary sector median of 12.17% across 186 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The upcoming Jaipur facility is planned to add 1,200 kg of annual capacity.
- Total installed capacity is expected to reach 7,900 kg per annum after the Jaipur facility is completed.
New initiatives
- The Marol facility enables growth in Turkish jewellery and other new offerings.
What to watch
- Whether operating margin recovers from 5.70% after the 4.27-percentage-point QoQ decline.
- Whether expense growth remains below the +9.07% QoQ pace relative to revenue growth of +4.13%.
- Progress on management's planned Jaipur facility, which is intended to add 1,200 kg of annual capacity and take total capacity to 7,900 kg per annum on completion.