Stories
Augmont Profit Dips 15% Despite 30% Revenue Surge; International Sales Blamed
- •Augmont Enterprises reported a 15.3% year-on-year decline in net profit to ₹58 crore in Q1 FY27, even as revenue from operations jumped 30.2% to ₹18,946 crore.
- •EBITDA fell 47.2% YoY to ₹53 crore, with EBITDA margin shrinking to 0.3% from 0.7% in the previous year's corresponding quarter.
- •The profit decline is attributed to unusually concentrated international sales in Q1 of the prior year and geopolitical disruptions in the Middle East impacting export volumes.
- •Core platform businesses performed well, with SPOT revenue up 55%, Digital Gold revenue up 120%, and Gold Loans AUM expanding 134% YoY.
- •Augmont accelerated domestic scrap-gold sourcing, which increased acquisition costs and compressed margins in the near term, but strengthened its sourcing ecosystem.
Key Questions Answered
Augmont Enterprises reported a 15.3% year-on-year decline in net profit to ₹58 crore for Q1 FY27. The drop was largely attributed to international sales being unusually concentrated in the first quarter of the previous year, alongside geopolitical disruptions in the Middle East that weighed on export volumes.
Augmont's core platform businesses performed well, with SPOT revenue growing 55% YoY and Digital Gold revenue surging by 120%. Additionally, Gold Loans AUM expanded 134% YoY to ₹1,270 crore, while Coins & Bars and EMI Jewellery each grew by approximately 65% YoY.
The initial public offering of Augmont Enterprises Ltd was subscribed 105.78 times on the final day of bidding. The Qualified Institutional Buyers portion received a 226.96 times subscription, while non-institutional and retail investors subscribed 121.47 times and 30.98 times respectively.
