P N Gadgil Jewellers Limited has informed the Exchange regarding 'Management Commentary on Gross Margins for Q4 FY26'.

P N Gadgil Jewellers reported a ~230 basis point YoY gross margin contraction in Q4 FY26, primarily driven by a structural shift in sales mix toward gold bars & coins (share rose from ~28% to ~40%), which carry thinner spreads than core retail jewellery. Additional pressure came from lower studded jewellery contribution (~30 bps) due to a one-time promotional offer, and higher trade discounts (~50 bps) for market expansion. Sequentially, margins also moderated due to increased franchise sales proportion (8% to 12%), higher gold bars & coins mix, and a favorable base effect from high-margin antique jewellery sales in Q3 FY26. Management characterizes the margin compression as largely one-time in nature, stemming from deliberate growth initiatives rather than structural deterioration. For FY27, the company reaffirms guidance of 12-13% gross margin, 7-7.5% EBITDA, and 4% PAT, and expects profitability to progressively normalize as product mix improves and new stores mature.