Shringar House of Mangalsutra Limited (SHRINGARMS) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Q4FY26 earnings conference call of Sringar, House of Mangal Suthi Limited, hosted by MUFJ in time IR. 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 signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to Ms. Darcy Jain from MUFG Entiremeyer. Thank you and over to you, ma'am.

Thank you. Good afternoon, everyone, and welcome to the Shingar House of Mangal Super Limited Q4 and FY26 earnings conference call. Today on this call, we have Mr. Chetan Thadeshwar, Chairman and Managing Director, Mr. Viraj Thadeshwar, Executive Director and Chief Executive Officer, Mr. Ritesh Doshi, Chief Financial Officer, and Mr. Rachid Sinha, the Company Secretary. A short disclaimer before we start this call. This call will contain some forward-looking statements which may be based upon our beliefs, opinions, and expectations of the company as of today. These statements are not a guarantee of future performance and will involve unforeseen risks and uncertainties. With that, I would now like to hand over the conference call to Mr. Chetan Thareshwar, the Chairman and Managing Director, for his opening remarks. Thank you, and over to you, sir.

Good afternoon. Am I audible?

Yes, sir.

Ah, okay. Good afternoon, and welcome, everyone. Thank you for joining our Q4 and FY26 earnings call. I hope everyone had opportunity to go through our investor presentation and press release that have been uploaded on the exchange. FY26 has been a defining year for Swingar, marked by several strategic milestones that have meaningfully strengthened our growth momentum and reinforced our market position. During the year, we successfully completed our listing and significant achievement that has enhanced our credibility, transcendent governance standards, and increased our visibility among stakeholders. Mr. Viraj will explain to you in detail of the other significant achievements of our company in FY26. Gold in India holds not just a cultural value but strong economic relevance from wedding traditions to wealth preservation. It plays a vital role in household finances. Reflecting this, as per RBI Gold Prize, Have delivered a CHGR of 10.9% over the last 42 years, increasing from 1,858 in 1983 to 1,52,228 as of April 15, 2026. Talking about the gold price duty, gold duty was initially set at 15%, later reduced to 6%, and has now been raised again to 15%. This latest increase was directly absorbed into gold price, pushing price higher. Have a good one. Even when the duties stood at just 6%, gold price had already surged to elevated level. This makes it clear that the rise in gold price cannot be attributed to duty alone. Global gold price movement, rupee depreciation, and strong domestic demand have all played a significant role. As a result, Duty hack can be now perceived by many as simply part of the broader trend of rising gold prices. As we reflect on the quarter and full year, we have achieved several meaningful milestones that underscore the strength of our operations and the clarity of our strategic direction. With this initiative, beginning to gain momentum, we remain confident in delivering consistent growth and creating long-term value for all our stakeholders. We remain committed to our guidance of delivering approximately 30% growth over the next two to three years. Now, I will hand over the call to Mr. Virat Tadeswar to give you further insight on the company.

Thank you. Let me give you some deeper insights of our current expansion and growth strategies. As a part of our ongoing expansion strategy, we successfully inaugurated a new branch office in Pune, a move that has significantly enhanced our geographic footprint in Western India from Maratwara to Widerb regions. The two high potential markets are witnessing increased demand for organized jewelry retail. By strengthening our distribution and service network in these regions, we are better positioned to improve customer access, enhance partner engagement, and drive sustainable revenue growth over the medium to long term. The quarter marked a particularly important milestone for the company, underscored by two transformative developments that align closely with our long-term growth ambitions and vision of becoming a more diversified jewellery player. Firstly, we executed a major expansion of our manufacturing capabilities during the fourth quarter. Resulting in a meaningful increase in production capacity from 2,500 kgs to 4,000 kgs. As a result, the blended capacity for the year stood at 2,625 kgs, leading to an effective capacity utilization of 87% for FY26. For the next financial year, Our available installed capacity stays at 4000 kgs, and we expect to further ramp up production in the coming quarters. This scale-up not only enhances our ability to cater to rising demand across existing markets, but also equips us to service new geographies and customer segments more effectively. The expanded capacity strengthens our operational backbone and positioning us well for sustained growth. Secondly, we made a strategic entry into the bridal jewellery segment, which represents a natural extension to our core Mangasutra business. This expansion significantly broadens our product portfolio. Enabling us to cater to wider spectrum of consumer needs within the wedding and occasion-based jewellery market. Brazil jewellery, being a high-growth category, enhances our overall value proposition. We have already commenced sales in this segment through marquee partners such as Tanishq and Malabar Golden Diamonds. The encouraging initial traction from these partnerships validates both the underlying market opportunity and the appeal of our product offerings. These strategic initiatives not only strengthen our current market position, but also lay a robust foundation for long-term sustainable growth while creating enhanced value for all stakeholders. I will now hand over the call to Mr. Ritesh Doshi, our CDFO, to discuss the financial performance of the company.

Thank you, Viratji. Good afternoon, everyone. I will walk you through the complete financial performance for the quarter and full year ended, 31st March, 2026. For the quarter, Singharas of Mangal Sutra Limited achieved a revenue from operation of INR 725.6 crore, an increase of 106.5% on YAY basis. The fourth quarter witnessed a mix of both volume and value, which combined for this robust growth. Sales volume for the 4th quarter stood at 500 kg, up 16% YOY. Gross profit for the quarter stood at INR 64.5 crore, an increase of 122.9% on YOY basis. Gross profit margin stood at 8.9% expanded by 65 basis points over year to year. EBITDA for the quarters to date INR 44.7 crore, an increase of 93.7% YOY. EBITDA margin were at 6.2%. Down by 41 basis point YOY. The quarter for financial year 26 PAD stood at INR 34 crore, an increase of 123.5% YOY. PAD margin was at 4.7%, an increase of 36 basis point YOY. For the full year revenue from operations stood at INR. 2,245.8 crore, marking an increase of 57.1% YY. Gross profit stood at INR 212.1 crore for the full year 26, an increase of 84.7% YY. Gross profit margin increased by 141 basis point to 9.4%. EBITDA was at INR 158.7 crore for the financial year 26. An increase of 72% YY. EBITDA margin was at 7.1% up by 61 basis point YY. Pat stood at INR 115.5 crore, an increase of 89% YY. The ad margin was at 5.1%, an increase of 87 basis points via one. For the full year, the revenue contribution from the corporate client stood at 49% and non-corporate client at 51%. Our debt equity ratio for financial 26 remained at 0.27. Thank you. I now hand over the call to moderator to open the floor for the question and answer session.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their 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 Nitra Deshpande from Mirai Asset Sherekar. Please go ahead.

Thank you. Thanks for the opportunity, sir, and very congratulations for the good set of numbers to everyone. My first question is, like, working capital management, like, can you give some, what is the... Extension of the rise that we have seen in this quarter and some insights on the debt position that GML is using for the low cost of debt. So if you can highlight, that is my first question. And please am I audible?

Yes, you are audible.

Yes, ma'am. So we have some give you a glimpse for working capital. So we have an adept equity ratio 0.27 and we have a churning of five times. So, we have churning for five times, and we require to increase our revenue, that's why we require our working capital. So, that's why we have increased some working capital requirements.

Okay. So, any other this sharp rise, this overall consumption only specific with the working capital that you are saying that is? That is for the revenue and the debt to equity, that is, as you have mentioned, five times.

Yes, sir. Yes, ma'am.

Okay. Okay. And can you also please highlight on the Titan and the second question, it is Titan and Malabar, as you said, is a leading player for the contributing to the revenue. And what would be the percentage from the other two to five major plans? And also on the segment side as the major contribution for the revenue, which we seen like Mangal Sutra segment earlier it used to. Now the extension for the bridal. So congratulations for that. But can you please share the segment-wise allocation for this?

Yes, ma'am. I'll say that Malabar Gold is a total 17% of our business from Malabar Gold. And Titan can't compare because Titan is completely on the job work, so when there is something on the job work, the top line will not become the top line. Thank you, everyone, and welcome to the call.

Okay, okay.

Okay, okay. As per the orders and as per the requirements?

Yes, yes, yes. Yeah. Okay, okay.

Thank you, sir. And what is the, just to quantify about the major contribution from the other segments like other than Mangal Sutra, because 70% which actually revenue is coming from this segment, bridal and the other corporate jewelry and the daily western wear, how much it is like, can you please buy pocket?

Yeah, in the last quarter only, we have started a bridal jewelry. So, we started preparing the bridal jewelry for three to five months. And we have started with the first our lot, which is our supply, which is Titan. So, it's a very initial stage. So, we can't get it in a percentage, because it's just started. So, I think, in March, this May, we have delivered it to our first lot. So, it will be very small in front of this mangal sutra's quantum.

Okay, got it. And the third question is it?

And after three months, we can give the percentage of Mangal Sutra and Biddle because it is in the flow. For Mangal Sutra, we have 1,333 clients all over India in the world. But when I talk about Biddle, it is just with the Titans. Initially, because they have a baby, they have started. And we have got a good order. But initially, Titan, Titan, turn by turn, now then Indriya and then Malabar. We have approved this product, but we want to go slow and steady because we have made a name of our quality and work, and we want to go to the bridle.

Okay, sir. Got it. Got it. Thanks. Answered to our question, it is, what do the staff increase about the other expenses in this Q4? As you have tremendously about any other specific that is other than the Lego cost or that is there, but other expenses increase very...

Thank you. So, in Haging, this is a portion of the National Lows. Second, in advertising, we have major exhibitions on the Indian level. So, we have approximately 10 exhibitions. So, it increases its expenditure. And recently, you will know that we have made new factories. Thank you.

Okay, okay. So hedging mechanism that you don't have any other exposure currently, like, can you bifurcate natural hedging on the LME front or international market?

Yes, man, we have almost approximately 3.5 ton per year volume of production. 30% is our barter exchange, or against gold to gold, or it's already hedged. 17% is the GML. And 13% is MCX hedged, so approximately 60% ka ratio, humara hedging ka bantah hai.

Okay, got it, got it sir. Thank you sir, thank you so much for this.

Yes ma'am, thank you so much.

Thank you. The next question is from the line of Mr. Abhishek Budolia from Budolia Investment Family Office. Please go ahead.

Hello. Hello.

Yes, sir. Please go ahead.

Hi, sir. Hi, sir. My question is, sir, that ultimately, your job work and what you work in your own self, what will your revenue split? And how much will your gross margin be individually?

I have told you that 30% is the job work ratio, 70% is the outright sale, so both the difference is 70 and 30. Last year, we had 26 crore job work, and this year we had 28 crore job work. Good morning, everyone, and welcome to the call.

Yes. And what's the cost of that? What will the cost of the job workers do if you can share?

Production costs are almost the same. Whether it's a gold advance, whether it's a production. So the production costs are almost the same.

But I wanted to know that the operating margin of the operating margin is a good job. It's a little bit, but you said quantity-wise you work almost on a large scale, because with Tata, it's a huge amount in the job work. So, you can pull the gross margin a lot, given sales, if you calculate the gross margin, you calculate the gross margin, then the portion of the job work will pull it up, so you can split it up.

No, no, no. In this case, the difference between the prepaid and postpaid, when our needs are done, when our investment is done, we charge a little bit of labor. But if our investment is not done, when the advance is done, the raw material is already there, then the difference or benefits should we give our clients to the client. Whether it's a tartar, or a beadle, or a reliance. So, this is a standard format. So, there are two default rates. One is, you can advance, then you can get the gold from our inventory. So, the investment position is in addition to that. Okay, thank you sir.

One will be saying how much expansion you can see next full year for 28 CR you have done job work. Next year, how can we expect for the full year?

Thank you. Good morning, everyone, and welcome to the call. Good morning, everyone, and welcome to the call.

And one last thing, I think you are trying to get out of job work and work in your own inventory risk. Have you seen any positive response from the brand that they will be doing on a gross basis, like they will find gold from you?

There are two things in it. If we talk about profitability, then we should work with our gold so that we can do more than we can do more than we can do more than we can do more than we can do more than we can do more than we can do more. Thank you, everyone, and welcome to the call. So, you are trying to work in your own role. If I am not wrong, it will happen to us. Definitely, definitely. We want to. That's why we have a profitability.

Did you get a positive response from the band?

Definitely. Today, Birla is converted from job work to outright. Reliance is converted to job work to other amount. And Indriya also, Birla, that is also converted into outright. And Tata is, we are in

negotiations with Tanish as well for conversion of job work into out-right.

I can give you an example of that our job work is 28 crore, which we generated, if we convert it in out-right, it may be 70 to 80 crore. So we can increase our profitability.

Sorry, 70 to 80 CR, it's up to the top lane.

No, no, no, it's too much. Because according to advanced gold, when we exchange a battery, we have got 28 crores of the job work. If I take it out of the sale, then we can use it as much as we can use it as much as we can use it as much as we can use it as much as we can use it.

Thank you. So, that means that you have to give your profit to your

job

work, not the entire bill you have built to the customer.

This is not the profit, sir. This is the labor cost, sir. This is labor cost. This is 28 crores.

Okay, so we are telling you, okay, what about it, thank you.

Thank you. The next question is from Sangeeta Purushottam from Kogito Advisors. Please go ahead.

Hello, am I audible? Yes. Okay. Sir, maybe two questions. A, working capital and job work versus outright research. So, I can understand that your turnover will increase if you convert an outright purchase. But there will be a little impact on the margins, right? The margins will get a little lower. But if you don't have a working capital, if you purchase an outright purchase, then you will have to gain more profit because you will use a more capital for working capital. Good morning, everyone, and welcome to the call. Working capital, number of days, debtor days, or inventory days, can you explain this? So, my first question is to take this working capital. The second question is that in the next year, like our 27th year, what is your view of volume growth? Good morning, everyone, and welcome to the call.

Thank you. Thank you. तो profitability कम से कम पर डील प्रॉक्सिमेटली 1.5 परसंड की बन जाती हैं, तो मैं कम से कम साल में 6 या 7 बार उनके साथ आउटरेट काम कर सकता हूँ, तो उससे हमारी profitability भी बन सकती है, और अगर मैं टॉप लाइन की बात करूँ, अगर 0.7 टन यादने की प्रॉक्सिमेटली 100 करोड For each company, if I sell it on the outright sales, approximately 1200 crore, 1,200 crore turnover, every year each company will increase.

Yes, I understand the top line, but now the big companies, these people get a gold loan at a good rate. So, like Tanishq and others, they get a good rate at a good rate. Therefore, their policy is that they work more than advanced goals.

Good question, ma'am. This is a very important question for our industry. Thank you. Right? So second, second, if this money is in the form of gold, if we give a little benefit, that's the 100KG each vendor, if he is in return side, or the showroom to the expansion, then there are more benefits in it. Good morning, everyone, and welcome to the call. Good morning, everyone, and welcome to the call. Right, right, okay, I understand.

So, this is why your working capital is growing, right, and is growing in this quarter. So, then, invest.

Hello. Hello.

Ma'am, we are not able to hear you.

Hello, I am working with 1,333 customers. I want to make all the jewelry, like bridal channel, make all the jewelry. I will make the top 60 organized players in India. Thank you. So, today, the relations of our products and the top most retailers, if we work with India, they are very complains that if we have 12 days or 15 days, we can't do it for 16 days. If we work with unorganized people, we can do it for 15 days, but we can do it for 20 days. So, this is why we started bridle. Good morning, everyone, and welcome to the call. Right, right. So our question is that our capital will also remain our sovereigns, and the payment terms will be clear, and we will get more money.

Okay, I understand. And can you give some guidance from volume growth, whether we expect a volume growth in FI27?

Good morning, everyone, and welcome to the call. Thank you. So, we will maintain this ratio. If the goal rate is still steady, the volume growth is 15% and we can take 30% or 35% to the next day.

Ma'am, please rejoin the queue. We have participants waiting.

Thank you.

Ladies and gentlemen, a reminder to all, anyone who wishes to ask a question, press star and 1 on the test on telephone. We have the next question from Priyam from Choice. Please go ahead.

Yeah, hi, sir. Sir, this is the previous participant's question question. You told me that for the next 2-3 years, you are targeting 30% growth, right? It would be a revenue growth, right? Or a value growth?

Hello.

Jee, hello, I do, can you repeat this, please?

Sir, you have given your guidance for 30% growth, that will be a value growth or a volume growth?

I have told you that if gold is very scary, it may be more than 30% or 35% of the range we will grow, and if this is the volatility in this year, we have 50% of the volume growth. Good morning, everyone, and welcome to the call. The business is smooth, because of the price of gold, no one will come back to the price, so we will not be able to increase in the price of gold.

Sir, actually, tell me, why is your average selling price?

And the new factory that we have made, the new technology that we have installed, the new products that we have made, that we will get a huge boost for our growth for coming.

So, we have minimum target percentage of revenue growth would be 30%, correct? Yes. And sir, my question with regards to FY26, your average purchase of the gold and your selling price, how much for FY26?

How are you?

10.500.

So, the average inventory cost is 10500, because we are going to the weighted average, right?

Right. So, you are on the basis of 1500. Good morning, everyone, and welcome to the call.

Thank you.

Understood. And then the second question is, in general trend, so for example, April and May, right? How is the overall trend? I'm just asking about the trend. I'm not talking about the particular number. How is the April and May? Because in May, we have an announcement in terms of DTI and geopolitical reasons also. So in April and May, how is the trend?

In April, I can say that in April, it is not so difficult for us because the order of the corporate orders are continuously going on and there is no effect on any person. So, when the duty was 2 years ago, it was only 15 years ago. Good morning, everyone, and welcome to the call. Good morning, everyone, and welcome to the call of the call of the call of the call of the Good morning, everyone, and welcome to the call. Thank you.

Yeah, understood. And, sir, when it comes to the wedding days, did you have calculated how the FI 27 vs. FI 26 will stay in terms of the overall wedding days? It's less than FI 27.

Sir, every year, wedding dates बहती जा रही है, अब आपने इस साल देखा, एक क्रोड वेडिंग था, तो हर साल, कोई इंडिया के अंदर, यह जनरेशन बहुत ज्यादा है, और गोल्ड आज दोनों ही तरीके से, as a luxury, या wealth, या हर तरीके से, गोल्ड एक intact, full चीज हो गई है लोगों के घरों में, Thank you.

Okay, sir. All the best, and congrats for the new facility. Hopefully, we will visit the new facility. Thank you.

Thank you. The next question is from Andrew Purshottam from Cogito Advisors. Please go ahead.

Thank you. Sally, sir, the results are very good. Thank you. Do you believe that this will change in positive cash flow? What time period will happen and what will change in positive cash flow?

Yes, as you know, we are manufacturers, suppliers, and when we supply to someone, there is a period of credit based on it, but we are trying to cover it as much as possible. Thank you.

So, do you believe that in six months, or in one year, or in two quarters, this cash flow will work?

Approximately, in two quarters, we have converted a lot of things, so as the corporates, the organized players, the labor job, if we take it on the outright basis, then the transformation of the unorganized to organized will become so fast. Approximately, in two quarters, we will do a lot of things in two quarters.

The second question was, you still started the bridal jewelry and the percentage of it is difficult to say, but if you say 1-2 years later, do you say that at the time of the call, that it's about 2-3 high mengal sutra, 1-3 high bridal jewelry?

Good morning, everyone, and welcome to the call.

Okay, so, you mean, 30% of the guidance of value growth has been incorporated into the Bridal Jewelry?

No, our train is running, I have to say that we are going to the road to our road, and if we get success in Bridal, Thank you.

Thank you.

Ladies and gentlemen, as there are no further questions, I now hand the conference over to Ms. Sashijan for closing comments.

Thank you all for taking our time for this call. For any further queries and questions, you may reach out to us, MUFG in time, they are IR advisors. Thank you.

Okay. Thank you so much.

Thank you. On behalf of Shingar House of Mongasut Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.