Q2 FY27 results analysis · November 11, 2026
Lalithaa Jewellery Mart Q2 FY27 Results Analysis: Growth Slows to 7.5%, Finance Costs Jump 34%
+4.5%PAT year on year, Rs. 253.05 Cr
Source: Quarterly results filing (BSE)
Quick summary
Lalithaa Jewellery Mart Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 7,019.56 Cr (+7.50% YoY) and PAT growth of +4.54% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 11, 2026 |
|---|---|
| Revenue (Q2) | Rs. 7,019.56 Cr (+7.50% YoY) |
| PAT (Q2) | Rs. 253.05 Cr (+4.54% YoY) |
| EBITDA margin | 6.34% (+13 bps YoY) |
| EPS (Q2) | Rs. 4.80 (-0.83% YoY) |
Quarter Snapshot
Q2 FY27 revenue grew 7.50% YoY to Rs.7,019.56 Cr with PAT up 4.54% YoY, but growth decelerated sharply from Q1's +26% and EPS slipped to Rs.4.80 from Rs.4.84 on a larger post-IPO share count. EBITDA margin recovered modestly to 6.34% (+13 bps YoY) on contained material costs, while finance costs (+34.28% YoY), negative H1 operating cash flow of Rs.-702.49 Cr, and rising borrowings offset the improvement. Store expansion to 66 met the 2026 target and the Rs.1,200 Cr IPO strengthened liquidity, though debt was not reduced.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "revenue growth likely remains positive and price/realization-led (in-line-to-ahead vs the +26% YoY Q1 FY27 print)" | +7.50% YoY revenue from operations — positive, but well below Q1's pace | Partially |
| Gross margin | "gross margin likely expanding vs Q1 FY27 on restored inventory gains" | 9.29% vs 9.23% Q1 (+6 bps QoQ; still −10 bps YoY) — modestly | Played out |
| Making-charge lever | "the external setup … is more favorable to it than Q1's was" | EBITDA margin 6.34% vs 6.25% Q1 — direction | Played out |
| Finance cost / deleveraging | "trajectory vs Rs.62 Cr … deleveraging cannot be confirmed" | Rs.68.14 Cr, +9.31% QoQ; borrowings Rs.1,835.35 Cr vs Rs.1,604.14 Cr at March — no deleveraging evidence | Contradicted |
| Inventory-gain tailwind from rising gold | "a rising average price through July–August is a revaluation tailwind" (per pre-call note, web-sourced, dated) | Gross margin only +6 bps QoQ and below the 9.39% year-ago level | Partially |
| Volume vs value split | watch vs industry −20% tonnage (per pre-call note, web-sourced, dated) | No volume data in filing | Not observable |
| Policy (duty cut) | "any subsequent notification would reprice the entire inventory" | Not addressed in the filing — open for the call | Not observable |
| Malaysia commencement | post-quarter (Oct 28) | Filing confirms allotment October 28, 2026; not consolidated in H1 — post-quarter event | Played out |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| 65 stores across 55 cities by 2026 | company investor presentation (September 2026) | 66 stores (66th showroom, Mayiladuthurai, September 15, 2026) | Met/exceeded |
| Making-charge revisions (Q4 FY26, end-Q1 FY27) "expected to support margins" (open-ended) | Q1 FY27 press release / management commentary | EBITDA margin 6.34% vs 6.25% Q1 and 6.21% Q2 FY26; gross margin +6 bps QoQ — direction | On Track |
| IPO object: 10 new stores, Rs.10,332.31 mn planned | IPO proceeds-utilisation table in the results filing | Rs.5,979.78 mn utilised by Sep 30, 2026 | On Track |
| "+26% YoY revenue growth" (Q1 framing, positive outlook) | Q1 FY27 press release (Sep 14, 2026) | Q2 revenue growth +7.50% YoY — a sharp deceleration while the positive framing persisted | Claim was Q1-specific; Q2 momentum much weaker |
| Making-charge revisions "expected to support margins" | Q1 FY27 press release | EBITDA margin +9 bps QoQ and +13 bps YoY (6.34% vs 6.25%/6.21%); gross margin +6 bps QoQ — direction, modest | Confirmed |
| "Gold-price volatility may influence purchase volumes and product mix" | Q1 FY27 press release | Revenue growth decelerated to +7.50% YoY; filing gives no mix data | Confirmed as a risk; quantum not verifiable from the filing |
| "Second fastest growing regional jewellery player" | company presentation (September 2026) | No peer data in the filing | Too early / Cannot assess from this filing |
Key Numbers, Quarter by Quarter
| Metric | FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|
| Stores | 61 | 64 | 66 |
| EBITDA margin (company basis) | 6.75% | 6.25% | 6.34% |
| Finance cost (Rs. Cr, consol.) | 198.45 (year) | 62.34 | 68.14 |
Key Investment Insights
Key Positives
- Revenue from operations grew 7.50% YoY and 16.39% QoQ to Rs.7,019.56 Cr
- PAT grew 21.53% QoQ to Rs.253.05 Cr
- EBITDA margin expanded to 6.34% from 6.25% in Q1 FY27 and 6.21% in Q2 FY26 (+13 bps YoY)
- Gross margin rose 6 bps QoQ to 9.29%
- Cost of materials consumed fell 2.05% YoY and manufacturing expenses fell 18.03% YoY against +7.50% revenue growth
- Store count reached 66 (Mayiladuthurai, September 15, 2026), meeting/exceeding the 65-store target for 2026
- IPO of Rs.1,200 Cr fresh issue listed August 24, 2026; cash rose to Rs.430.96 Cr and total equity grew 54.79% since March
Risk Factors
- Revenue growth decelerated to +7.50% YoY from +26% in Q1 FY27
- PAT growth of +4.54% YoY trailed revenue growth; EPS declined to Rs.4.80 from Rs.4.84 YoY on a larger share count
- Finance costs rose 34.28% YoY and 9.31% QoQ to Rs.68.14 Cr while borrowings increased to Rs.1,835.35 Cr despite IPO proceeds
- H1 operating cash flow was negative at Rs.-702.49 Cr (CFO/PAT -1.52x) on a Rs.894.42 Cr inventory build
- Trade receivables nearly doubled since March to Rs.406.30 Cr from Rs.214.69 Cr
- Employee costs grew 17.22% YoY, outpacing revenue growth
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.