Lalithaa Jewellery Q1 FY27: Revenue Rises 26% to ₹6,035 Crore, But Profit Falls 22%

BY A_ADMIN • FILED 14 Sep 2026, 4:03 PM

Lalithaa Jewellery Mart Limited reported strong revenue growth in the first quarter of FY27, although profitability came under pressure. Consolidated total income increased 26% year-on-year to ₹6,035 crore in Q1 FY27 from ₹4,794 crore in Q1 FY26. However, EBITDA declined 15% to ₹376 crore, compared with ₹442 crore a year earlier, while the EBITDA margin contracted to 6.2% from 9.2%. Profit before tax fell 21% to ₹284 crore, against ₹359 crore in Q1 FY26, while profit after tax declined 22% to ₹208 crore from ₹266 crore. PAT margin consequently fell to 3.5% from 5.5%. Finance costs increased 25% year-on-year to ₹62 crore from ₹50 crore. Sequentially, revenue declined 7% from ₹6,502 crore in Q4 FY26, while EBITDA and PAT fell 31% and 40%, respectively.

Store Expansion and Future Plans

Lalithaa Jewellery has expanded its retail network to 65 stores across 55 cities in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and Puducherry.

The company has a strong presence in Tier II and Tier III markets, with 47 of its 65 stores located in these markets. These stores contributed 62% of revenue in Q1 FY27, highlighting the importance of smaller cities and towns to the company’s growth strategy.

The company plans to continue expanding its presence in Southern India while exploring untapped markets in other regions of the country.

Its key strategic priorities include:

Expanding the studded gold jewellery business
Increasing presence across Southern India and entering untapped markets
Expanding silverware and other product categories
Offering lower-value products to help address the impact of higher gold prices
Continuing investments in brand building and marketing
Strengthening its value-focused jewellery proposition

Manufacturing and Supply Chain

Lalithaa Jewellery operates two manufacturing facilities in Chennai and Kanchipuram with a combined operational area of 63,682 sq. ft.

The company follows a vertically integrated model in which it procures raw materials, designs and allocates them to manufacturing partners and karigars, followed by hallmarking and quality checks before products reach customers.

The company reported 563 exclusive karigars and 278 non-exclusive karigars. Karigars have contributed more than 80% of the company’s products over the years.

The company also highlighted its ability to control costs through its manufacturing and supply-chain model, supporting its focus on the mass and value-conscious jewellery segment.

Gold Inventory and Natural Hedge

Gold inventory remains an important factor for jewellery retailers, and Lalithaa provided details of its natural hedge mechanism.

As of the reporting period, the company had ₹10,407 crore of gold inventory.

Against this, customer advances stood at ₹5,388 crore, while creditors stood at ₹292 crore. Together, these amounted to approximately ₹5,680 crore, providing a natural hedge equivalent to 54.6% of gold inventory, according to the company.

The company said customer advances and creditor payment terms help reduce its exposure to short-term movements in gold prices.

Strong South India Focus

Lalithaa’s business remains heavily concentrated in Southern India, which the company identifies as India’s largest jewellery market.

Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and Puducherry together account for its current retail footprint.

The company is particularly focused on middle-income and value-conscious consumers, supported by:

Tier II and III store locations
Regional jewellery designs
In-house manufacturing capabilities
Jewellery savings schemes
Competitive pricing
Exchange and buyback propositions

Management Commentary

Lalithaa’s management highlighted its focus on building a scalable retail platform through continued store expansion, strengthening its manufacturing capabilities and deepening customer engagement.

The company’s strategy is centered on serving mass and value-conscious consumers, particularly in Tier II and III cities. Management also sees opportunities to increase the contribution from studded gold jewellery and broaden the product portfolio through silverware and other lower-value categories.

The company believes these initiatives can help broaden its customer base while addressing affordability challenges arising from elevated gold prices.

Key Investor Points

65 stores across 55 cities
47 stores are located in Tier II and III cities
Tier II and III markets contributed 62% of Q1 FY27 revenue
Q1 FY27 revenue increased 26% YoY to ₹6,035 crore
EBITDA declined 15% to ₹376 crore
EBITDA margin fell to 6.2% from 9.2%
PAT declined 22% to ₹208 crore
Finance cost increased 25% to ₹62 crore
Gold contributed approximately 92% of FY26 revenue
Gold inventory stood at ₹10,407 crore
Natural hedge covered 54.6% of gold inventory
FY26 revenue stood at approximately ₹25,024 crore
FY26 PAT stood at approximately ₹1,010 crore
The company plans to expand its studded gold jewellery business
Further expansion is planned in Southern India and other untapped markets
Silverware and other lower-value products are being expanded to address affordability amid higher gold prices

Points to consider

Lalithaa Jewellery delivered strong top-line growth in Q1 FY27, but the decline in EBITDA and PAT highlights the pressure on profitability despite higher revenue. The company’s large Tier II and III footprint, continued store expansion, manufacturing capabilities, and natural gold inventory hedge remain important positives, while investors should watch margins, finance costs, gold prices, same-store growth, and the returns generated from further store expansion.

Disclaimer: This article is based on information disclosed by Lalithaa Jewellery Mart Limited in its investor presentation and exchange filing. It is intended for informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security.