Shankesh Jewellers delivered exceptional Q1 FY27 results, reporting a 100% surge in consolidated net profit to ₹43.23 crore for the quarter ended June 30, 2026, compared with ₹21.60 crore in the corresponding quarter last year. According to the company's unaudited standalone financial results, revenue from operations climbed 55.06% year-on-year to ₹423.57 crore, up from ₹273 crore in the year-ago quarter. EBITDA grew 92% to ₹61.1 crore from ₹31.8 crore earlier, with EBITDA margin expanding significantly to 14.4% from 11.6% in the same period last year, representing an improvement of 279 basis points. Basic and diluted earnings per share for the quarter stood at ₹3.68, against ₹1.84 in the corresponding quarter of the previous year.
Corporate clients contributed 66%, or ₹280 crore, to the company's revenue during Q1 FY27, while non-corporate clients accounted for the remaining 34%, or ₹144 crore. The company's product portfolio showed strong performance with revenue from 22-karat gold sales standing at ₹337 crore, while 18-karat gold sales contributed ₹85 crore. Additionally, the company generated ₹3 crore in revenue from job work during the quarter. As per Business Standard, Shankesh Jewellers manufactures hand-crafted gold jewellery and provides customisation services, offering a wide range of 22-karat and 18-karat jewellery including bridal, antique, temple and customized designs across India.
Shankesh Jewellers shares jumped 9.35% to ₹107.7 on NSE in early trade on Friday after reporting strong quarterly results, with the stock trading at ₹107.7 apiece around 9:35 AM, gaining ₹9.19 from its previous close of ₹98.4. The newly listed stock has been in the green since Wednesday, clocking a cumulative gain of 22% in just three consecutive sessions. In less than a month since listing, the stock has jumped 25% from the issue price of ₹93 per share. The stock had previously advanced 3.68% to ₹102.03 following the strong quarterly results announcement, with the company listed on the National Stock Exchange (NSE) and the BSE on August 25, 2026, and shares closing at ₹98.45, up 0.53% on the NSE as of 4:00 PM IST on September 10, 2026. The stock's strong performance comes even as the equity benchmark Sensex crashed 1% during the same session.
The rating upgrade stems from Shankesh Jewellers' equity fundraise of ₹367 crore through an initial public offering in August 2026. As reported by Business Standard, the IPO comprised ₹275 crore as fresh issue and ₹93 crore as offer for sale. The company has strategically utilized these proceeds for debt reduction and meeting working capital requirements, with approximately ₹40-45 crore remaining freely available for future business expansion. This capital structure improvement is expected to maintain low dependence on external borrowings.
According to Crisil Ratings, the company's operating margin improved in fiscal 2026, aided by inventory gains resulting from increased gold prices. However, the rating agency expects margins to normalize over the medium term. The improved financial position is anticipated to provide significant free cash availability for business growth and support revenue growth through additional working capital funds. The company's ability to maintain healthy operating margins while efficiently managing inventory and working capital cycles amid gold price volatility remains a key monitoring factor. With operating profit growing significantly faster than revenue, the quarter also marked a notable expansion in profitability, though the focus now shifts to whether the company can sustain the revenue momentum and improved margins through the rest of FY27.
The Board of Directors approved the unaudited standalone financial results for the quarter, along with the limited review report issued by statutory auditors V J Shah & Co. The company also approved shifting its registered office within Mumbai from its current premises at Zaveri Bazar to Raja Bahadur Goverdhanlal Bansilal Building on Kalbadevi Road, Bhuleshwar, effective from September 10, 2026. As reported by Business Standard, the rating continues to reflect Shankesh Jewellers' established presence in the gold jewellery industry and strong customer relationships, though these strengths are partially offset by susceptibility to intense competition, regulatory scrutiny, and volatility in gold prices.
