Shanti Gold slashes FY27 guidance on volume, margins, and Jaipur plant timeline
Volume growth target cut in half. EBITDA margin forecast dropped to ~4% from 7-8%. The Jaipur plant won't open until late 2026.
— 4 earlier stories on Shanti Gold International Ltd. →What's new
- Volume growth guidance cut to 30-40% from a prior 60-70% target.
- Sustainable EBITDA margin expectation lowered to ~4% from 7-8%.
- Jaipur plant commissioning delayed to September-October 2026.
Why this matters
Shanti Gold has halved its growth outlook and squeezed its profitability forecast in a single call. The combination of slower volumes and thinner margins points to a tougher operating year than investors were led to expect.
What we're watching
- Whether the Jaipur plant commissioning slips further past October.
- The actual FY27 revenue outcome against the ₹3,000-3,500 cr range.
- How the 3.5-4% normalized PAT margin holds up without inventory gains.
The full read
Shanti Gold told analysts on its May 22 earnings call that the year ahead will look very different from what it previously promised. Volume growth is now guided at 30-40%, roughly half the 60-70% it had flagged earlier. The sustainable EBITDA margin target has been cut to ~4% from 7-8%. Separately, the Jaipur manufacturing facility won't be commissioned until September-October 2026, a delay from the earlier timeline. Revenue for FY27 is pegged at ₹3,000-3,500 crore, with a normalized PAT margin of 3.5-4% excluding inventory gains. This is a sharp downward reset in a single quarter. The volume cut suggests the company sees less demand or more competition than it did three months ago. The margin compression leaves little room for error.
Questions answered
- How much did Shanti Gold cut its volume growth guidance?
- Management reduced the FY27 volume growth forecast to 30-40%, down from a previous target of 60-70%. That is a cut of roughly half at the midpoint of both ranges.
- What happened to the margin guidance?
- Shanti Gold lowered its sustainable EBITDA margin expectation to around 4%, from an earlier 7-8% target. It separately guided for a normalized PAT margin of 3.5-4% excluding inventory gains.
- Why was the Jaipur facility delayed?
- The filing states the commissioning timeline has shifted to September-October 2026, but gives no reason for the delay. The original target date is not specified.
- What is the revenue outlook for FY27?
- Shanti Gold expects FY27 revenue of ₹3,000-3,500 crore. The prior-year base is not provided in the filing, so the growth implication is unclear.
- How different is the new guidance from what was previously communicated?
- Both volume and margin targets have been roughly halved. The 30-40% volume growth is a steep drop from the 60-70% aspiration, and the 4% EBITDA margin is below the midpoint of the old 7-8% range.
Shanti Gold International Ltd.
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