Management Commentary on Gross Margins for Q4 FY26

P N Gadgil Jewellers reported a gross margin contraction of ~230 basis points (bps) year-on-year for Q4 FY26, driven by three factors: higher gold bars and coins sales share rising from 28% to 40% (150 bps impact), lower studded jewellery contribution (30 bps), and increased trade discounts for market expansion (50 bps). Sequentially vs Q3 FY26, margins also moderated due to higher franchise sales proportion, elevated gold bar/coin mix, and a favorable base effect from Q3's antique jewellery sales. The company clarified this is largely one-time and structural in nature, noting the refinery business was fully discontinued from September 2024. For FY27, guidance remains at 12-13% gross margin, 7-7.5% EBITDA, and 4% PAT, consistent with FY26 performance. The management views promotional spending as upfront brand investments with expected compounding returns.