Ladies and gentlemen, good day and welcome to P N Gadgil Jewellers Limited Q2 FY 2027 Earnings Conference Call hosted by Nuvama Institutional Equities. 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. Please note that this conference is being recorded. I now hand the conference over to Aayush Adukia from Nuvama Institutional Equities. Thank you, and over to you, sir. Thank you, sir. Good afternoon, everyone. On behalf of Nuvama, it is a pleasure to welcome you to P N Gadgil Jewellers Q2 FY 2027 Earnings Conference Call. From the management today, we have Dr. Saurabh Gadgil, Chairman and MD, and Mr. Deepak Vijay, CFO. I would like to hand over the call to the management for their opening remarks. Over to you, Saurabh. Thank you, Aayush. Good evening, everyone, and a very warm welcome to the Q2 FY 2027 Earnings Conference Call of P N Gadgil Jewellers Limited. I hope you had the opportunity to review our financial results, our investor presentations, and press release, which is uploaded on the exchanges and on the company's website. To begin with, I would like to express my sincere gratitude to our customers, employees, franchisee partners, vendor partners, and shareholders for their continued trust and support. Their confidence in P N Gadgil Jewellers continues to inspire us as we build on legacy and deliver a strong performance in the second quarter and the first half of FY 2027. This July to September quarter is traditionally a relatively subdued period for the jewellery industry, largely coinciding with Chaturmas, when wedding-related demand tends to be lower. Despite this seasonal moderation, consumer demand remained healthy. With gold prices continuing to remain elevated, customers increasingly gravitated towards lightweight designs, studded jewellery, and old gold exchange. These evolving preferences continue to create opportunities for trusted, organized retailers with established brands and a strong focus on transparency and customer confidence. P N Gadgil Jewellers has delivered a revenue of INR 2,666 crore, up 22% YoY, and EBITDA grew 57% YoY to INR 224.6 crore, with EBITDA margin expanding 186 basis points to 8.4%, while profit after tax grew 53% YoY to INR 121 crore, with a PAT margin of 4.5%. Profit grew well over twice as fast as revenue, reflecting a richer product mix, a higher retail share, and a growing operating leverage. For the first half, revenue grew 31% to INR 5,079 crore, and PAT grew 52% to INR 226.5 crore. This was also a defining quarter for our brand portfolio. We rebranded LiteStyle as YOOU by PNG, which is a lightweight diamond jewelry brand. Sorry to interrupt, sir. Your voice is breaking. We rebranded LiteStyle as YOOU by PNG, which is a lightweight diamond jewelry brand for younger, style-conscious consumers, and the response has been very encouraging, with YOOU studded ratio rising to 53.1% from 32.9% last quarter. on 1st October, we completed the 100% acquisition of Silvostyle, a fast-growing silver fashion jewelry brand that grew revenue at 64% CAGR and PAT at 99% CAGR between FY 2024 and FY 2026, and already operates 18 stores and about 68 franchise shops within our network. With P N Gadgil legacy, YOOU, and Silvostyle, we now have one house and three brands. Sorry. Sir, your voice is breaking. There is cracking sound coming from your line, sir. Nothing can be done landline. Sir, I will just disconnect and reconnect. Ladies and gentlemen, please wait while we reconnect the management. Ladies and gentlemen, thank you for patiently holding. We have the line for the management reconnected. Over to you, sir. Now with P N Gadgil legacy, YOOU, and Silvostyle, we now have one house and three brands that engage with every generation of jewelry buyers. In Q2 of FY 2027, we also raised INR 700 crore through QIP, which was oversubscribed 1.5 x. CRISIL also reaffirmed our credit rating at A+ with stable outlook. These developments have further strengthened our financial position and provided a solid foundation for the next phase of our growth. We currently work with over 100 karigar associations and more than 180 vendor associations, reflecting the strength of our long-standing partnership. We also remain open to exploring any further strategic opportunities for synergistic integration across the value chain, wherever they can strengthen our capabilities and support our long-term growth. We closed the quarter with 80 stores, comprising of 79 stores in India and one in U.S. These include seven company-owned stores across Uttar Pradesh, Madhya Pradesh, Bihar, and Haryana, reflecting a growing presence in Northern and Central India. Encouragingly, these markets are already showing promising results, with our stores in the region recording a studded ratio of 17.4%, well above the company average. This gives us confidence in our expansion strategy and the potential of these markets. We remain on track to open 23 new stores in FY 2027, taking our total store count to approximately 103 by the year-end. Expansion will be developed over the next two quarters. Sorry to interrupt, sir. Your voice is again breaking. Mobile. Can you call the mobile team now? Okay, sir. I will reconnect you. Ladies and gentlemen, please wait while we reconnect to the management. Ladies and gentlemen, thank you for patiently holding. We have the line for the management reconnected. Over to you, sir. We remain on track to open around 23 new stores in FY 2027, taking our total store count to approximately 103 by the year-end. Expansion will gather pace over the next two quarters, driven primarily by the franchisee-led model across both legacy and new formats. Our Ayodhya store is already operational, while the Prayagraj store is scheduled to open on 4th of November, 2026. Of the planned addition, 8 - 10 openings are targeted in Q3, while the remaining openings are planned for Q4 FY 2027, supported steady progress towards the expansion targets. We have also strengthened our risk management framework, raising the hedge coverage to approximately 80%, making our earnings more resilient to gold price swings. Backed by a 195-year-old legacy, a sharper brand portfolio, and a strong balance sheet, we remain confident of delivering sustainable, profitable growth throughout the year of FY 2027. With this, I will hand over the call to our Chief Financial Officer, Mr. Deepak Vijay. Thank you, Dr. Gadgil, and good evening, everyone. Let me take you through our financial performance for the quarter ended September 30, 2026. Consolidated revenue from operations grew 22% year-on-year to INR 2,660 crore, driven by strong retail performance. Retail revenue increased 31% year-on-year to INR 2,061 crore, supported by a healthy SSSG growth of 25.5%. Franchisee revenue also recorded a strong growth of 25% year-on-year, whereas e-com reduced 84% year-on-year, primarily due to strategic recalibrations of the product mix, as we deliberately reduced the share of low-margin coin sales and shifted focus towards higher-margin jewellery products to enhance the quality and profitability of the channel. Retail now contributes 77% of our total revenue, compared with 72% in the corresponding quarter last year, reinforcing its growing contribution to our business and margin expansion. Also, the share of retail revenue from Northern and Central regions increased to 2.7% in Q2 FY 2027 from 0.7% in Q2 FY 2026. Our gross profit grew 32% year-on-year to INR 339.8 crore, with gross margin expanding by 89 basis points to 12.7%. Our EBITDA increased 57% to INR 224.6 crore, with a margin expanding 186 basis points to 8.4%. Excluding an unhedged inventory gain of INR 5 crore, adjusted EBITDA grew 60% to INR 209.6 crore, with an adjusted EBITDA margin improving to 8.2% from 6.3% in year ago. This reflects the strength of our underlying operations and demonstrates that our margin expansion has been driven by operational improvements rather than gold price movements. Profit after tax grew 53% year-on-year to INR 121.1 crore, with a PAT margin at 4.5%, while adjusted PAT increased 57% to INR 117.4 crore, with the adjusted PAT margin improving to 4.4% from 3.3%. Basic earnings per share stood at INR 8.7 compared to INR 5.8 in quarter two FY 2026. Our premiumization strategy continues to deliver encouraging results. The retail studded ratio improved to 11.9% compared with 9% in quarter two FY 2026 and 10.96% in the previous quarter. Diamond jewellery recorded growth of 21% in value and 11% in volume, reflecting healthy demand in this category. The gold jewellery grew by 47% in value and 4% in volume. Gold bar and coins reduced by 24% in value and 48% in volume. Gold bar and coins now account for 15.8% of retail revenue, down from approximately 22% in the previous quarter. 68% of the gold bar and coins purchases are converted into jewellery purchases this quarter, compared with 53% in the previous quarter. Customer engagement remained strong, with footfalls exceeding INR 1.78 lakh, a conversion rate of 88.6%, and an average transaction value of INR 1.22 lakh. Together, these trends reflect our continued focus on improving product mix, driving jewelry-led sales, and enhancing the quality of our retail revenue. As we enter the seasonally stronger second half, capital allocation will remain focused on high-return store expansion, festive and wedding season inventory, the integration of Silvostyle, digital investments, and a steadily higher hedge coverage. With a net worth of INR 2,855 crore as of September 30th, we are well-capitalized to fund this growth. With that, we conclude our opening remarks and would now be happy to take your questions. Thank you. Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Yash Sonthaliya from Edelweiss Public Alternatives. Please go ahead. Hello. Hi, team. Thank you for taking my question, and congratulations on a good set of numbers. So, three questions. Number one, I wanted to understand, basically, we have Hello, I am audible, right? Yeah, you are audible. Please go ahead. Yeah. First question is basically, why do we have seen a good expansion on gross margin year-over-year and some decline quarter-over-quarter based on how mix has changed? Do you think there was any impact of the festive shift on our gross margin? Also, what is the impact of the festive shift? Hi. On the gross margins, you have picked up right that we have increased our gross margins on a year-on-year basis. There is some dip on a quarter-on-quarter basis, primarily driven by the franchisee share increase to 17% from 12% in the quarter-on-quarter number. That is the reason why the gross margin has reduced by 50 basis points on quarter-to-quarter. On the festive shift on gross margin, we are not very clear what exactly is your question, but concerning the sale part of the festive mix, the Navratri season has shifted into Q3 this year, which was in the last quarter two in the previous year. That is the shift which has happened on the sales, but I have not really understood your question on what you wanted to understand on the gross margin bit. Basically, on year-over-year base, while our gross margin has improved a lot, but if I adjust for other segments and how the mix has changed, also, basically, the unhedged profit has been very much similar. I wanted to understand, with the studded ratio increasing from 9% to where we are, I thought the gross margin could have improved more, and festive have somewhere impacted the margins. But festive will happen in next quarter. That is what I am— To an extent, the festive sales which would have happened last year in Q2 has this year pushed to Q3. So, from that perspective, it is right you are saying that festive margin, festive sales will be shown in the third quarter this year. But otherwise, the only mix, the only change has been the franchisee, where we have seen our franchisee grow to 21%, 17% from 12%. So, that explains the 50 basis points difference in gross margin. Got it. Basically other festive [Non-English content] quarter [Non-English content] [Non-English content], how would have our revenue growth would be adjusted for festive with some broad numbers? If you look at the entire season of the 10 days of Navratri, around INR 200 crore would have been the revenue from those 10 days. So, that revenue has been pushed to Q3. Got it. Sir, my second question is more on capital allocation, like what we are seeing. Basically, we are trying to grow more on the franchise model going ahead, and now we are also entering different brands and different segments of the jewellery business. So, how should we think about how our internal capital will go into all these businesses, where we will go more in a COCO format, and how the capital will flow into the business? See, like we had mentioned in our last investor call also, that the company had done the COCO stores primarily in Q4 of last year to establish presence in U.P., so Q3 and Q4. We had done four stores in U.P., Lucknow, Kanpur, Gorakhpur, and Banaras. We also had done a company store in Patna and also one in Indore. This was to really establish the brand there, to build confidence there. And then the plan was to further expand by the FOCO route. That is what we are following this year. So, this year it is going to be more FOCO-led in Q3 and Q4. But going ahead next year, from next year onward, we plan to do a 50/50 allocation between COCO and FOCO, and that too also in the legacy and the YOOU by PNG format, it will be 50/50. We are talking of adding around 30, 35 stores. Out of it, 17 -1 8 stores would be legacy, half the balance would be YOOU by PNG. And again, in this, it would be half COCO and half FOCO. We are trying to say from all this is that our internal accruals should be more than enough to fund the COCO expansion, and we would not be required to raise any further debt. And by 2030, we are expecting that this debt should come down by 20%, 25%. Got it. Very clear, sir. And sir, my last question is on our expansion towards U.P. and other states. So, basically, while you already mentioned the studded ratio is over 17% over there. Can you just help me understand how has been the asset turn or inventory turn in those parts of the region to all the stores which are the most mature over there, and what are the margins or broadly studded ratio in those stores? See, roughly the stores are around, average age would be around a year, 11 - 12 months. And on average, the stock turn there would be at 1.0x. So, like we had projected there that each store should be doing around INR 50 crore, INR 55 crore of revenue, and that is where we are. So, our planning as well is on track, and in fact, we are a little higher. We are at around 1.1x stock turn, so around INR 60 crore. But this is what we had expected there. Studded ratio, we had projected 15%. We are upwards of 17%. Margins are same like the margin in inventory started, gross of around 35%. Got it. Sir, just a follow-up. Basically, that region and all the economics is very different from what we do in Maharashtra. How you are internally benchmarking, what would be the numbers you are envisaging once the stores mature over there? What will be the turnover and the studded ratios you are expecting? See, the turn again should be the same. We are looking at 2.5x - 3x stock turn per store, and then after year four, we should be looking at reaching a 3.5 x- 4x stock turn. That would translate into around INR 200 crore when the store is fully mature. I think the studded ratio which we are projecting there should be in the range of around 20%-25%. This is where we are right now. We also have 17% already. That is clearly achievable. Also, on the stock turn wise, we are already at 1.1x stock turn. I think we are on track to be able to achieve the numbers which we are aiming for. Got it. Thank you for taking all my questions. Best of luck. Thank you. Thank you. Before we move to the next question, a reminder to the participants to ask a question, you may press star and one. Next question is from the line of Prince Choudhary from PINC Wealth. Please go ahead. Hello? Hello? Am I audible? Yes, please go ahead. You are audible. Yeah. Congratulations, sir, for the great sets of number. My question is on the YOOU brand. Just wanted to understand that currently we have an inventory turnover of 0.8 x. So, what will be the peak inventory turnover we can expect from the YOOU brand? I think YOOU, like we know, is more diamond-focused. It has got around 70% diamond and 30% gold. And the composition of the entire inventory should be maturing at, I think, around 1.8 to 2 stock turns. Okay. And sir, for our legacy, we have seen that our inventory turnover has come to 3.7x. Can you specify the reason that why the inventory turnover has dipped if we see the following quarters? See, we are always given this that the inventory stock turn primarily as we expand would somewhere actualize at these levels. The average industry stock turn is around 2.0x - 2.5x. We are well above that. And I think our focus also is to go more on jewelry, to go less on the bars and coins. And that also is ensuring that our jewelry, the product mix is focusing more towards jewelry. And I think at a store level, company level, 3.7 x- 4x is a very good stock turn, which I think in the industry should be one of the best. Got it, sir. But sir, just wanted to know that, are these inventory turnovers sustainable or going forward since we are in an expansion mode, we will see reduction in inventory turnover also? So, what can be sustainable in the long run? See, this is sustainable because as we have seen the stores also maturing, the store which we expanded two years ago will head toward maturity, and new stores are coming up. So, when we had said during the early IPO days that the 5.66x stock turn will somewhere mature at 3.5x - 4x, and that is where we are seeing. So, this stock turn is sustainable as we go ahead. Okay, sir. And sir, how we are seeing the demand in the festive season? Like Navratri, you have mentioned about, but what is your expect towards Diwali and the wedding season? See, Navratri has been good, and so the season looks positive as we speak. Prices have remained soft, and that has been also tempting people to enter the market. So, we are positive that Diwali should be a Diwali season, the entire 1st November, first 15 days should be good. The indications are there are a lot of bookings, a lot of interest from people to make the purchases. So, I think we are all confident that Diwali and the wedding season look to be good. Sir, we will see more of volume growth now when we see the SSSG growth in the coming time. Because the prices have softened also. See, we always maintain that when prices come down, you see more volume. When prices go up, you will see more value. So by that logic, yes. Sir, the last question that we have raised the fund recently, we have done the QIP. Like how we are going to deploy that fund, and can you just share the timeline for that expansion? Yeah, I will just take that. What we have done on the QIP, we have deployed some funds into the working capital, which is to take the care of the festive inventory-led demand on cash. The balance from the accruals, which we will do over the next couple of years, are 170-odd stores, which we have given a guidance earlier by FY 2029, which is completely led by the accruals which will generate from the profits. So we are well pretty much into the shape, and to achieve that, we do not see any deviations on that right now. Currently, the money is parked in the bank FD. In bank FD. Around INR 600 crore is in bank FDs right now, as we speak. Also, if you will see our quarter-on-quarter, my FDs, the balance in my FDs last quarter, it was INR 554 crore. This is roundabout INR 1,191 crore in FY, in quarter two end. We have increased our FDs also by INR 637 crore in between two quarters now. Okay, sir. Got it. Thank you, sir, for answering the questions. Thank you. Next question is from the line of Piyush from SmartSync Services. Please go ahead. Good afternoon, sir. Am I audible? Yes. Yes. My question is regarding the geographic expansion. Nearly 90% of company store are still concentrated in Maharashtra and Goa, while expansion into Northern and Central India is becoming the key growth driver. How do sales productivity, operating margin, and inventory requirement in this newer market compare with the mature Maharashtra stores? Also, you are moving towards the franchisee-led expansion, and how much the improvement in capital efficiency and store-level returns can we expect? From the inventory point of view, we do not foresee any major changes in terms of the investment. The only difference will be because these, the newer markets are primarily led on the studded side, so the investment will be a little lesser in terms of the gold kind of volume which will be put into these new stores. That will be a little lower, let us say 10% of what we do in the Maharashtra stores. That is the impact on the investment side, on the inventory person. On the impact of the newer geographies into our business, as we have said, right now, Maharashtra contributes round about 91% of our total sales. That will change to round about, the newer geographies will be around about 30% - 35% by FY 2030. That is the interim projection we have had. The studded ratio, which is in the 11.9% at a company level right now, will increase to 17% - 18% at a company level, and at the Northern India and the Central regions, it will enter in the 25% is what we have forecasted. That is how we see. So the margin expansion will happen from the studded and into the newer geography. Right now, the share of the Northern and Central region, as I have already said in my commentary, is around about 2.7% of retail. Now, this 2.7% of retail does not move too much into the numbers at a total level right now, but once this Northern region is in the range of 30% - 35%, this will show in the margin expansion and the EBITDA expansion. Okay, sir. Thank you. My second question is regarding the INR 700 crore QIP. So you have raised the INR 700 crore through QIP, and consolidated borrowing have increased by approximately INR 385 crore since March. While quarterly finance costs have also risen significantly, you explain how the QIP proceeds and increment borrowing are being deployed? I will first explain to you on the March versus quarter two, what comparison you are doing on a INR 385 crore of the gross borrowing, which is increasing. That is the right number. That has primarily increased because of the GML loans which we have increased, which is in line with our hedging strategy. We are increasing our GML loans. That is the reason on the gross number. But if you will see our FDs, the FDs and the collateral which we have given to the banks has also increased by INR 552 crore. So net-net, my net borrowing has reduced by INR 167 crore, including the QIP funds. Okay. The company borrowing levels and interest cost and debt reduction strategy over the next two years? The borrowing, as Saurabh has already mentioned earlier, that we plan to reduce the borrowing by FY 2029, FY 2030 in the range of 20%-25% and upwards of that. That's the goal which we have set up for ourselves. Okay, sir. Thank you so much. Yeah. Thank you. Thank you. Next question is from the line of Raj Shah from Fident AMC. Please go ahead. Yeah. Hi, thank you for the opportunity and congrats on a good set of numbers. Just wanted to understand the quarter-on-quarter decline in employee cost that we are seeing. Also, going forward, there was a very high base of marketing cost last year. How do you see the other expenses from here on? On the employee expense, there is a small drop of around INR 6 crore. That is majorly because of the variables which were there, the difference of the variables across the two quarters and quarter one last year, quarter two last year and this year. So, that is the difference on the variable payouts. Can you repeat your second question, please? Yeah, second question. This quarter other expenses were like, your operation expenses were like INR 85 crore-INR 86 crore. Yeah. last year, because we had done a lot of advertising in U.P., et c. So, last year's base for H2 for other expenses looks quite high, close to INR 190 crore for the third quarter. We see a decline in Q3 because of that in other expenses. In the quarter one call also, we have mentioned that we have recalibrated all our operating expenses majorly in the other expenses category, which comprises of promotion, discounts, which comprises of the advertisement. If you compare quarter-on-quarter, last quarter it was INR 85 crore, and this quarter it is INR 86 crore. We are pretty much in line with what we have committed in the quarter one call. You have pointed that H1 versus H1 last year versus this year, we have also improved, and that's primarily because of the advertisement and the campaign discounts which we have said we will kind of rationalize. H2 also similar moderation we will continue to see, right? Yes. We foresee that the similar moderation should happen in H2. Understood. Lastly, sir, any indication of what kind of growth you are looking at in H2 of this year, vis-a-vis last year in this festive season and the entire H2 as a whole? At a company level, we are targeting the revenues to be in the range of INR 13,000+ crore. That's the guidance we have already given in the market, and we see that this guidance is achievable as of now from the numbers which we have seen. Okay. Thank you. A PAT margin of 4%-4.2% is what we have given the guidance earlier. Okay. Thank you. Thank you. Next question is from the line of Prolin Nandu from Edelweiss Public Alternatives. Please go ahead. Yeah. Hi, Saurabh and Deepak. Thank you for taking my question. My question is on the U.P. expansion that you have done, right? Now we have four stores in U.P., and you mentioned that they are already ahead on the turnover side, right, in terms of inventory turns. So, just wanted to understand, Saurabh, what have you done right in that market, right? Because for a Maharashtra-based jewelry player to move to U.P., it is not a very easy and a similar kind of a market. So, what is it that is going right? And even this 1.1 x turn that you have achieved, how does it compare to some of the other peers in the same catchment area? And one of our forte or one of the strengths that we have in Maharashtra is that we have a very large share of made-to-order, right, which helps us increase our turns as well. What is the situation in U.P.? Are we also seeing similar kind of a trend in U.P. as well? So, some more qualitative color on what is working for us in U.P. will help. Thank you. Yeah, a long question. See, you are asking a lot of business secrets which I cannot say on this, what we have done right there. If you go back, we had said that this is your strategy. I mean, everybody had a question on why U.P.? At that point also, we had said the Peshwa strategy, our market research there, looking at the brand positioning there, looking at the customer connect which we already enjoyed there. The right campaign we used there to introduce the brand, to use legacy as the focus to enter those markets, which has really resulted well. We have also been able to get the right merchandise at the stores. I think it is a combination of these things. We had also said that we will keep on tracking it, and it has been now four quarters, and the result which we had projected, we have been able to surpass those. I think that is what has really worked in our favor. This was a very planned move. This was a strategic move. We had purposely not gone into markets where we felt there was not a position for us. Our organized family jeweler tag has worked well there. We further continue to expand in U.P. I think by the end of FY 2027, we should be around 8 - 10 stores in U.P. We will be adding some more stores in Lucknow. We are opening Prayagraj next month, in November. I think the journey is going strong there. The brand is well accepted there. We are getting a lot of newer customers. Studded ratio has gone well there. Conversions also are on track. I think as a company, the stride into U.P. and Central India has been a success. As regards to our made-to-order business, we are also able to service the made-to-order business from our existing network of karigar suppliers in Maharashtra here. Though we have set up also a regional office in U.P. to cater to faster processing of orders. But the order ratio, the made-to-order business stands around 22%-25% in U.P., as compared to around 30%-32% in Maharashtra here. Sure, Saurabh. That is very encouraging. Thank you so much for that detailed answer. Now, as you mentioned, you plan to double the store count by end of the year, right? U.P. is a fairly large market, right? A lot more can be done in that state, and initial signs are encouraging. So, within U.P. and within the stores that we have opened, are there any differences in terms of, are some of the stores in Tier one, Tier two down doing better than, let us say, Gorakhpur or some of the other stores? Again, what is the kind of clientele that we are attracting, right? Is there a certain kind of clientele which is coming to us because of whatever kind of activity on the ads, on our legacy and all that we have done? Currently, we are all in the bigger towns of U.P. So, like we speak of Maharashtra, when you look at Mumbai, Pune, Nashik, Nagpur, Sambhaji Nagar, we are right now in all the major towns of U.P. Like you rightly said, U.P. is a big state, and we can still go in district places and taluka places as we move ahead. That is the plan of expansion, that U.P. can add a lot of more stores. When you look at our customer profile, what we have been looking at is that we have been seen as a legacy player there, almost 200 years of legacy, and a mix of organized and a family setup. The customer profile is almost similar to a Titan profile, a Tanishq profile, and what customers are coming at us, people who are looking at quality or looking at organized setup and looking at great design and great store experience. That is where our focus has been. We are not a discounted brand here. We are focusing more on service, on design, and a great customer experience. Great, Saurabh. That is it from my side. Thank you so much and all the very best. Thank you. Thank you. Next question is from the line of Madhav Jhawar from SKP Securities. Please go ahead. Hi, thanks for the opportunity. Sir, if you can share if you have any guidance for FY 2029, any revenue target if you have in your mind? See, we had done a three-year plan, which is more of an aspirational plan, but it will be difficult to right now pin a number to it. On a broad level, we should be at around INR 17,000+ crore. I think our CAGR for FY 2027 to 2029 should be around 25% year-over-year. Okay. Sir, if you can share, when you make these estimates, so let's say, when we are sitting today, so for your mature stores, say stores which are two years, three years older, so for those stores, what are your estimates on a same-store sales growth basis, assuming that, let's say, the gold prices, there is no increase in gold prices, let's say, when we are sitting today? So, on a same-store basis for a mature store, what are your internal estimates, broadly, if you can share? So, see, when a store matures, the SSSG there would be in the single digits, 7%, 8%. But the other store, the newer store, the SSSG would be quite higher. Like we have mentioned in year one, if we do a one-stock turn, year two, we are looking at 1.8 x- 2x stock turns. So, that's almost like double, 80% growth in SSSG for the new store in year two. Year three, from 1.8x, we look at reaching 2.5x. So, that's how we are doing the entire calculation. Just to answer your question, based on this calculation, by FY 2029, we should be around INR 21,000 crore, is what we are projecting by this estimate. And I think our estimates are basically based on our store openings, what we are looking at in terms of areas, the legacy store and new format stores. It's a detailed working on that. Right. So, this 7%, 8% that you have mentioned, so this is like, this is you are mentioning without any surge in gold price or within this estimate, like you pencil in, say, a 5% surge in Sorry, you were— So, this is single digit without any gold price surge. So, if the gold price surge happens, then the volume comes down. So, we have kept it flat for now. Okay, got it. Got it. Thank you. Thank you. Next question is from the line of Smith Gala from RSPN Ventures. Please go ahead. Yeah, thank you for the opportunity and congratulations on a good set of numbers. My only question will be, as we mentioned early on the call, the gross margins sequentially got hit by 50 basis points because increase in franchisee mix. As we are going to grow faster on the FOCO side, especially in this year and 50% in FY 2028, how do you see the gross margins and in turn the EBITDA margins shaping up for FY 2027 or H2 of FY 2027 and FY 2028? What happens, we have explained it earlier also, when at a gross margin level, the increase of franchisee dilutes the margin at a gross margin level. But at an EBITDA level, we are pretty much there. That is the reason also, even though the gross margin have shifted a bit on the quarter-on-quarter basis, my other expenses has come down because I do not have a cost to operate those stores into my P&L. That is the cost being taken at the franchisee P&L and not in the PNG P&L. That is how it plays out, and that is how we have also calculated our kind of forecasted numbers, what Saurabh just gave it. Is it fair to understand that while the gross margins might reduce because of the increase in franchisee sale, the increase in franchisee mix will be helping the EBITDA margins to improve? Yes, because the other expenses, rentals, and all will come down on that channel. Okay, that was very helpful. Thank you. The ROCE will have a jump because there is no capital being put there. There are hardly any capital which we employ for the franchisees too. So, the ROCE should improve on a yearly basis when the franchisee becomes meaningful. Okay. Thank you, sir. That was very helpful. All the best for the future. Thank you. Thank you. Ladies and gentlemen, to ask a question, you may press star and one. Hello? Next question is from the line of Madhav Jhawar from SKP Securities. Please go ahead. Thanks for the follow-up opportunity. Sir, I wanted to have an understanding from you. So, let's say, if you open a franchisee store, right? What I can sense is, if you open a franchisee store today, so firstly, you will be, let's say, the franchisee store has, let's say, a Right? So firstly, you will be outright selling that inventory to the franchisee to open the showroom. And then for that, whatever will be the regular sales happening, that will be happening. So, while in the year of opening of the franchisee store, there would be the revenue jump from that also. Is my understanding correct? Yes, that's the right understanding. We will do one sale on day zero when the store gets open, and then the replenishment happens. That's a practice that everybody follows. It's an industry practice. Right. For you, for an average store, how much is the gold inventory? Around INR 50 crore -INR 55 crore. Okay. In volume, if you can share. Okay. Hello? Yeah, go ahead. You had a follow-up question? I was asking in volume terms, like in kgs, how much of the inventory is required for a PNG showroom today? It depend upon the karatage. Ballpark would be around 30-32 kilos, but it all depend upon the karatage you are looking at, 18, 14, 22. There is no hard and fast rule, but ballpark would be around 30-32 kilos. Okay, got it. Thank you. Thank you. Next question is from the line of Vikrant Kashyap from Asian Markets Securities. Please go ahead. Good afternoon. Congratulations on a strong set of numbers. Hello? Am I audible? Hello? Hello? Am I audible? Yes, go ahead, please. Okay. Congratulations, sir, on a very strong set of numbers. My question pertains to your expansion into North Maharashtra again. We have started seeing some better contributions coming from— Your voice is very feeble and not very much audible, Vikrant. Now, am I audible, sir? Yeah, better now. Yeah, better now. I was just asking a question on non-Maharashtra market contributions. Since we have seen started traction of better traction in [inaudible], can you please highlight how would be our store mix going ahead in those markets, so that we can benefit the most from this expansion? Vikrant, sorry, we cannot hear you. Your voice is not clear. Request you to please use your handphone. [Non-English content] The line from the current participant has been disconnected. Ladies and gentlemen, due to time constraint, we will take that as the last question for the day. I now hand the conference over to the management for the closing comments. Thank you, everyone, for joining today's conference call and for your continued interest in P N Gadgil Jewellers. We appreciate your insightful questions and continued support. Should you require any additional information, please feel free to reach to our investor relations partner, X-B4 Advisory. Thank you all, and have a wonderful day ahead. Thank you very much, sir. On behalf of Nuvama Institutional Equities, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.