RBZ Jewellers Limited (RBZJEWEL) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Q4FI26 Mornings Conference Call of RBZ Dwellers Limited, hosted by Valoram Advisors. 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 touchstone phone. I now have the conference over to Ms. Hena Khatli from Valorum Advisors. Thank you, and over to you, ma'am.

Thank you. Good evening, everyone, and a very warm welcome to you all. My name is Hena Khatli from Valorum Advisors. We represent the investor relations of RVZ Dwellers Limited. On behalf of the company and Valorum Advisors, I would like to thank you all for participating in the company's earnings conference call for the fourth quarter. Full year and full year ended financial year 2026. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings conference call may be forward-looking in nature. Such forward-looking statements are subject to risk and uncertainty, which could cause actual results to differ from those anticipated. Such statements are based on management beliefs as well as assumptions made by and the information currently available to management. Audiences are cautioned not to place any undue reliance on this forward-looking statement in making any investment decisions. The purpose of today's earnings call is to make an investment decision. It's purely to educate and bring awareness about the company's fundamental business and the financial year under review. Let me now introduce you to the management participating with us in today's earnings call and hand it over to them for opening remarks. We have with us Mr. Harish Zaveri, Joint MD and CFO of the company, Mr. Harshit Gandhi, Internal Financial Controller, and Mr. Bhavesh Sabnani, Senior Manager, Accounts and Finance of the company. Without any further delay, I request Mr. Harit Zaveri to start with his opening remarks. Thank you and over to you, sir.

Thank you, Hina, and good evening, everyone. Welcome to our earnings conference call for discussing our performance for the fourth quarter financial year, 2026. Before I give you the financials and operational highlights of the period under review, let me first start by giving a brief overview of the company for some of those participants that may be new to our company. Arbizet is one of the leading organized manufacturers of gold jewelry transforming itself into a B2C segment. We are a unique jewelry company with diversified business model wherein we offer products to national retailers on a wholesale and job work basis as well as direct to consumers from our flagship retail store in Ahmedabad. We have a state-of-art manufacturing facility equipped with advanced casting, laser, 3D printing technologies, supported by 280-plus professionals and 200 skilled artisans. Because of our manufacturing setup and presence across both wholesale and retail segment, we are able to garner better margins than our peers. We offer a diverse range of jewelry collection comprising of different manufacturing techniques and varieties, but our specialty lies in antique gold bridal jewelry. Our flagship showroom Harid Zivari Jewelers in Ahmedabad offers bridal, occasional, and daily wear jewelry across diverse price ranges. The product portfolio features a diverse selection of gold, silver, studded, and other jewelry including bangles, chains, necklace, rings, earrings, etc. We are also planning to expand our retail presence in Rajkot, Surat, and Ahmedabad as well. Now, coming to the financial highlights for the period energy. The company recorded a healthy performance during the quarter with the revenue growth broadly in line with the guidance and expectations shared with investors in the previous quarter. The growth momentum was supported by festive demand, particularly during Akshay Dhritya season. For the quarter under review, revenue from operations stood at 190 crores, registering a strong growth of 38% Y-on-Y. EBITDA for the quarter came in 21 crores, reflecting a healthy growth of 46%, with EBITDA margins improving to 11.19%, up 63 basis points year-on-year. Profit after tax for the quarter increased by 36% year-on-year to 12 crores. Translating the PRAT margins of 6.17%.

For

the financial year 2026, revenue from operations stood at INR 637 crores, reflecting the growth of 20% year on year. EBITDA for the year increased significantly by 43% to 92 crores, with EBITDA margins improving to 14.44% and expansion of 233 basis points. Profit after tax for the yearly increased by 41% year-on-year to 55 crores with fat margins at 8.61% reflecting continued improvement in profitability and operating efficiency. In terms of segmental performance for the quarter, retail revenue stood at INR 121 crores, registering a healthy growth of 31% year-on-year. Wholesale revenue stood at 67 crores, reflecting a strong growth of 57% by-on-by, while job work revenue stood at approximately 1 crore. Now, coming to the operational highlights of the period under review, during the quarter, we actively participated in key exhibitions, including national level and state level across B2B and B2C segments, further strengthening the brand visibility, market presence, and customer outreach across market. We launched multiple digital campaigns to strengthen customer engagement and brand visibility across both occasion wear and daily wear categories. In occasion wear segment, campaigns such as Shwed, Kesudo for Holi, Akshay Trithya, and Red Breakers showcase company's gold polki and antique jewelry collections. Additionally, the company continued to strengthen the positioning of its lightweight and elegantly designed daily wear. We are set to combine certain products in-house in the daily wear segment from quarter 1 at 527 with dedicated infrastructure in place. On the retail front, encouraged by the strong performance of our Ahmedabad store, we are now planning to expand in other key Gujarat markets, including Surat Rajkot. Both the store rooms are targeted to commence operations by quarter 2 of FY27. Further, we are actively exploring strategic location in eastern Ahmedabad and nearby cities such as Gandhinagar for mid-size stores of around 5,000 square feet and aimed at strengthening the regional presence and driving incremental stores. Overall, we concluded the financial year 2026 on a strong note and remain focused on carrying this momentum into the current fiscal year. Supposed, supported by the preparation of upcoming wedding season and key regional festive across core markets, we continue to witness steady consumer demand in occasion wear segment ahead of the wedding season. While also optimizing our inventory mix with a greater focus on lightweight and budget-friendly product offering to cater to evolving consumer preference, with this, I now open the floor for questions and answer session. Thank you.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Uchit Shah from Vemana Capital. Please go ahead.

Thank you, sir, for taking us through the presentation. I just had a few questions. So, first is due to recent increase in customs duty and

the advanced authorization on import

of gold that was announced yesterday, do you see any impact on volumes or revenue or margins?

So, see, these are very... You know, very immediate events or it has just been a few days that these whole things are happening. And generally, we would take some time, let's say a week or two, in fact, a little bit more to understand how the market and the consumers are reacting. While I understand that there are news and all, but this type of appeals the government has also done in the past. We have seen in the previous government that, you know, things were announced. Now, what we are really waiting or what we are really wanting to see is the what is happening on the actual ground levels, right? Like, are the customers slowing down? Or is there exchange happening more? You know, so, as like you, when we are studying, what Certainly, I think, you know, these restrictions are not advantageous, but up to what level there is an impact is crucial. Now, when you talk about the industry, quarter one post-Akshay Dritya remains low in terms of sentiments and all in the buying. There is no buying season as such in late quarter one. So, even if there is an impact on a, you know, it can be quite low because, you know, this has not come in the period of Navaratri, Diwali, this type of announcements. So, this is also seen as a positive sign that, okay, what will happen in the quarter, upcoming quarters and in the year, you know, we have to just understand and see. But generally, you know, like you, we are also understanding what is happening on the ground. It doesn't look that discouraging. But certainly, on the wholesome perspective, we have witnessed things like this in the past. I don't have my comments on this, unless there is something really concrete to tell you. But we are on it.

Sure, sir.

And then the second question is slightly more related to the geopolitical scenario right now. So, has this changed any of our strategies around gold hedging, particularly around the gold metal loan? Like we've been doing it in the past, but are we anticipating to increase that in future or do we plan to keep it at the same level?

So, we will be exploring GML in this financial year, perhaps for... Buying the new buying of coal that will happen for the upcoming stores. And how we generally play a safeguard is, we have our weighted inventory at about 20-25% lower than the current market price. So whatever we buy, we try to maintain it in the range of, let's say, whatever the new buying or new absorption of coal has happened. It should still, the weighted average still has to remain at least 15% lower to current market price. Now, I know, so if there is a correction and all, we can straight away hedge it on the forward markets. So to answer your question, yes, we are looking for GML. The practices are quite good. We are not a company who is looking forward to realize all our profits once the gold prices have gone up and jump in to sell all the gold in the market, etc. We maintain certain percentage of cushion that is required. You know, even if there is an absorption of coal, to what extent can it absorb? And then, obviously, once the pricing are coming to parity, we are sure to hedge it.

With the next question from the line of Raj Shah from RK Family Office, please go ahead. Am I audible? Yes, Raj.

Yeah, so, hi. This year, there was a volume degrowth in our job work business, and in the last quarter, you had told that job work services are in demand, and due to the price rise, job work services are in demand. So, what is the outlook for FY27? How many kgs is it to be target, and what is the order book?

So, generally, if you see the value of merchandise, In job work, last year and this year, you will find that there is a significant increase. Now, when you say about the quantity, if the gold price has doubled and let's say the revenue, you know, has not doubled, that means there is certainly going to be a dip in terms of quantity. You know, what I had told in the last quarter was that there is a preference. That corporate jewelers are having because of steep increase in price that they are going for job work instead of wholesale business. And thus, there is a, you know, a change in how the demand is getting to us. And we as a company would always prefer job work because we get gold a little bit in advance. Hence, you know, it's a better thing for us. Given that in quarter four, we are seeing some difference. In quarter four, the wholesale sales actually increased, you know, to 56%. And, you know, some of the people who were doing job work tilted their demand into wholesale. The better way of looking at this is combining the B2B segment of both streams. Job Work A.G. Plus Hold A.G. And then multiply it by the average value. So just to give you a perspective, the total amount of value of merchandise this year that we have sold is 1251 crores. The retail segment has done 408 crores and the B2B segment has done 843 crores. So this will be a better picture to look at. And you know, thus both the things will get combined. So, in looking forward, we don't know whether the demand is going to come from job work much, or the demand is going to come from the wholesale, but in whichever way the B2B demand is coming, we are just equipped, we are equipped in ourselves to serve it. If you ask my preference, I would really go for job work, despite it not should be done.

Thank you. The reason I ask this question, because I think in the current year, like, significant portion of our profit

is because of our job work services.

And if in next year, the job work services are lower, then it will take a good hit on our profits. So that is the reason why I'm asking about this.

So, you know, if you check the value of merchandise, now if it is coming from job work or wholesale, the value of merchandise should actually increase. What is the value of merchandise? This year it is 1251 crores. Now, say next year, if job work remains, for an example, just a case, if job work remains consistent at 621 crores and wholesale increases to let's gain couple of hundred crores, still the bottom line will be secured. If you're talking about margins, that, you know, the margins will improve or improve depending on the sales mix because job work is contributing highly in terms of, you know, the bottom margins, etc., then your point is valid. But if you're talking about the absolute number change, then we should look at the value of merchandise.

Currently, there is 336 crore kg of gold on our balance sheet, and the gold price has risen, and there is reduction in volumes in all our three segments because the price has increased. So, do we still need 200 crore more gold for Rajkot and Surat, or it has reduced and some of our current gold can transfer, can get transferred?

So, there is a 336 crores of inventory, which is lying. I don't think it is kg. And that is fine. So, but the intention of your question is quite clear that how much do we need in Surat and Rajkot. So, these are large format stores, like how we have in Ahmedabad. A typical large format store will need an inventory of somewhere around 125 to 150 crores. So, there will be an inventory shift, there will be an additional debt, which will be required, and hence, all the showrooms will be funded. We see Surat and Rajkot both as a very potential market. Ahmedabad ranks number 7, Surat ranks number 9, and Rajkot ranks in the top 20 economies of India. Hence, the large stores are, there has to be a large store and it is in the right prominent location where the gold market is basically situated. And thus the amount of inventory that we are forecasting is required doing all the competitor analysis, the consumers, etc. We have previously done exhibitions also in this area to, you know, and we have got sufficient marketing budget to.

So, sir, the reason I'm asking is that gold price has risen and volumes have reduced. And because of that, do you think that the earlier estimate of our 150-125 crore of gold in our new showrooms is required? Because due to rise in gold prices, volumes have decreased. That's why I'm asking that 120-150 crore had it reduced and because volumes is not coming in our current business, some of our current gold can get transferred for Rajkot and Surat.

Correct, correct. So again, I think I had answered this. So there will be a transfer of stock in terms of kgs. But your fundamental question was that if we are allocating some rupees, then will it get reduced? The answer is no. Why? Because people generally when the gold prices are rising, still their, you know, their value does not, the budget does not change. For an example. Okay, now, how much is it? It's different. 100 gram or 100 gram, that is different. But generally, people, the behavior of consumers is to buy from a budget perspective.

So, the peak debt will be increased, right? What will be our peak debt after we take this loan? Because currently, 120 crores are in short-term debt.

We want to keep the debt levels at 1 is to 1 ratio, ideally, or 1 is to 1 point, maybe leverage to 1.4, 1.5. But generally, right now, I think for this 4 showrooms, it will be around 1 is to 1.2. At peak, at least for this scale here that I am understanding.

Thank you. We take the next question from the line of Shikhar Mundra from WeWalk Commercial Limited. Please go ahead.

Hi, Arichik. Congrats on a good set of numbers. What was the approximate inventory gains this year because of the increase in gold prices?

So, it's a nice question. So, currently, I do not have a, you know, a number on it, but in future, let me, let me take this up into, you know, number categories and et cetera stuff. But, I think, assuming that around, around. 10 to 12 crores or 10 to 11 crores, 12 crores should be inventory gain number. That is what we are anticipating on the, you can, I mean, if gold prices were not to increase, I think somewhere around 40, 45 crores should be, should be the pack. I am still, see, this is just a very, very, don't take me on numbers, because if we are having it, I would have said it. Right now, we don't have that inventory gain number. As such, what we really have is the cushion that we have from the current market price to the inventory, and that is around 20-25%.

Okay.

But, like, assuming no inventory games, then what would have been a profit growth, like, compared to last year, FY25, I'm just trying to get that. So, if you say 40-45 crore, then that's not a big profit.

Yeah, so, supposedly, if, so, generally, when we calculate, you know, gold, if we were to do a GML, like how other players do, then the interest cost should have been half. We would be saying somewhere around 8 crore rupees in our interest cost, and subtract the inventory gain, maybe, and that would be the match. But exactly if I could have the number, I would have given it to you. Right now, we don't, but I hope that in the future, this number transparency will be better. I just hope there is no commitment.

Second question is, our trade receivables have jumped like from 17 to 56. What's the reason for the same?

So this must be 24th of March, there was an admission in Bangalore, IIJS Dritya. And because of the admissions, there was a spike in sales. That's it. Akshay Dritya this year came in a little early, if you understand, from 30th of April 2025 to 19th April 2026. Hence, that last 10 days of March, there was a little bit of spike in sales, and the data, now it has come down again to a normal level.

We take the next question from the line of Yash from TandEquity. Please go ahead.

Hi. So, just wanted to understand, I think you shared a number, kind of missed it. What would be the inventory required for the next upcoming two stores?

Inventory, generally, both the stores are large format stores. We anticipate about 125 to 150 crores of inventory for each store.

Are we anticipating any sort of dilution to fund this?

No, I think raise of debt plus inventory transfer plus the profit gain would actually suffice it.

As far as the next three years are concerned, because I think you're very focused on Gujarat as a state, right? Just wanted to understand, why the focus on Gujarat? Is it because you're a local player there? Because I mean, you anyways, do a lot of wholesale, right? So I'm assuming you have supply chain networks. Throughout, why not Mumbai, right? Why not any other city? Just curious, not questioning anything. Yeah, so that is fine.

It's a good question, in fact, you know. So, if you look at Gujarat and pinpoint the pan-India players that are present in Gujarat, there are four to five players who are having approximately a nil level presence in Gujarat. They are having maybe some six, seven stores. Just take out the data from any stats and maybe all the Pan-India players can take it out. Apart from one player, there is no other player who has penetrated the Gujarat market or been successful. And in Gujarat, there is particularly no chain brand. So that's a clear white space that we are having. But why is that? Why is that? If the market is great, there are southern Pan-India jewelers who have not been able to cater to this market well. And hence, we have an opportunity over here. I mean, we should realize this as fast as possible. We should become a good jeweler, you know, a chain store in Gujarat, and because there's a clean white space. Now, just take out the number, you know, I cannot, but if you take out a number of, let's say, an eastern player or a southern player having X number of stores in a particular state in which it was their home ground, I think those many numbers of stores we should be having in our home ground. If the GDP data and population data matches and which matches, right, Gujarat is a prosperous state and that's a clear white space available and hence this thought, you know, after a lot of, you know, debates and things have come out to be very clear that yes, yes, we should go.

Just pick the original question. Do you think... In the next three years or four years or five years, when you're looking at growing your retail business, which you obviously are, do you think it's wise to be concentrated in just one state? I got your POV in terms of the lack of retail chain presence in organized wealthy in Gujarat, but what would you think, like, five years ahead or three years ahead? Do you think it's wise for...

There will be, there is no, yeah, so there is a vision, and, you know, aspirations 100% are there. You know, in future to expand. We are certainly, right now, we are a single flagship store. We are going to have, let's say, four stores in this calendar year. But, you know, and we are talking about becoming a good player in the state of Gujarat. But we are not restricted to Gujarat itself. Let us first, you know, play out this four, five stores, etc. well, and, you know, let the pulse come. I think we are 100% aggressive in terms of scaling. If you look at post IPO things. You will understand that, you know, when we came to LPO, our turnover was around 300 crores. Now, we have reached, let's say, 600 crores. The profit margin was X. The pad level was 22. We have reached, let's say, 50-55. We will be scaling, and the company has what aspirations to become big. We are not restricted to any of our, you know, states or anything like that. Let the opportunity come. Let the capital come.

Yes, I would request you to please join back the queue for follow-up questions. Yeah, I'll do that. Thank you. Ladies and gentlemen, in the interest of time and fairness to others, we request you to respect two questions per part of spin. We take the next question from the line of Rajinder Farsi from NP Analyst. Please go ahead.

Hello, am I audible?

Yes, you are audible.

Yeah. So, hi, Harit. So, my first question is, initially we planned that we are going to open the two stores, like one in early Q2 and the other one maybe in late Q2. So, is the timeline still correct? And about the showroom third and showroom fourth, Do we have any estimated timelines now, previously, because you didn't provide any estimated timelines for the third and fourth store, which you are talking about?

So, yeah, so I think the timelines for Surat and Rajkot remain same, and the timelines for the third and the fourth store, still it is a little early to give, but we should be opening in the season time.

But within this year?

Yeah, within this calendar year.

Okay. And the other question would be regarding a sharp increase in the fixed process as well as a sharp increase in the current work in progress. So, is it related to these two showrooms which are going to be open in Q2?

Correct.

Okay. And as you mentioned that... As Akshay Trikya came in early this year, right, on 19th of April, and you had a big sale in the Bengaluru side in the late of March, and that increased our receivables to specific CR this year. So what is the current status of receivables as of today?

The current status, you know, it has gone to a normal level, basically, cannot actually disclose the number, but you will certainly get it in the quarter one of the results. But yes, there was a spike and it has now, it has now reduced. Generally, the data is in wholesaler approximately 30 days. So the realization has happened.

Okay, and how this quarter has been for us up until so far? Since because now there has been a speech and

No, no, no. Very honestly, I'll tell you, see, post Modi, we are also gauging, right? And you are also gauging. And whatever the anticipation is, I think ground level reality will matter the most.

You know, the assumptions, etc.

You know, we will not be working on that. We will be working on what the customers and the real time demand is. Now, how has been April? April has been very good.

Thank you. We take the next question from the line of Om Gole from Adid Wealth Advisory. Please go ahead.

Hi, am I audible?

Hello.

Yes, please go ahead. Hello, thank you, yes. Sir, my question is recently that, like our Prime Minister told, that everyone should not purchase gold for one year, right? And also, we are planning to open new stores in Q2 and Q3, right? So, how we are going to face the situation? Like, what will be our strategy to pull the demand and all? So, this is my first question.

So, see, the Prime Minister has requested, you all know what the announcement is, and Let us see what the impact of that world, you know, are and how will it remain. India is a much rooted in a traditional, you know, country. So certainly if there is weddings and the prime minister has said, etc. stuff, will that really, you know, stop the, you know, buying of cool jewelry and you need to have social status? There is a lot of traditions. That are going on. I don't think so. Things are going to really, you know, let's see. Again, what you're telling me about, what you're asking me is about strategy. And what we are seeing is that there is a huge market. There is a new market that we are exploring. And, you know, we are in this game for a very long term. And hence, this kind of things will come. And because of our marketing spend, if you were expecting X, it will be X minus some percentage, but in the overall kitty, it has to really grow. Currently, I really don't have, you know, that level of, you know, I really don't have, you know, exact strategy saying, but exchange of gold is one thing that everyone is looking forward. Likewise, we will also look forward. Is that going to make everything just perfectly okay? We don't know. The best part about our company is we are in occasion jweller more. Hence, all the demand is linked through weddings. So, daily wear purchases here and there can really take a pause, but I don't think so daily wear, occasion wear will actually take a pause, you know. And perhaps, let us go all in for the occasion, you know, the upcoming market, like, you know, the season time. I think, rest, you know, see, we as an organization, we go all in for the season times. We will not... I understand the sentiments and etc., but the announcement has come on a very favorable time. It's a low season time. Come on the Daksha Tritya day and etc. It would be very different, but not that condition as of now.

Let us see.

Next question from the line of Saurabh Jole from Fires Asset Management. Please go ahead.

Yeah, good evening. I have two questions. First is, when you say the stores that you plan to have in, let's say, a city like Gambina, I'm curious to know why would you start with a small store? Is it, you know, for capital constraints or you're not as positive about this particular market versus, let's say, your current end of our market? So that is question one. And the second one is, can we talk about the two stores, Surat Rajko, what is the, you know, how much time will it take for these stores to kind of come to Ahmedabad level sales? You did about 400 acres in F526 from Ahmedabad. I mean, roughly on a volume equivalent basis, when do you think it will, I mean, Surat Rajko, when will they catch these levels?

So, first question was Gandhinagar location. Gandhinagar comes into the northern side of Ahmedabad. From center, Ahmedabad, you know, is a 10 kilometer or 12 kilometer radius kind of circle city. And Gandhinagar just comes at around 15 kilometers or so. It's a very good location to have, you know, basically we are having a presence in the north of Ahmedabad. It is going to act as a feeder store and also certain kind of, it's the right catchment area because it is any catchment which is spread 7 kilometers far is considered to be a good area to open a retail store. It is itself a nice city. It is one of the prominent cities in Gujarat. A lot of advantages is what we are able to see. There is a market over there. And also the brand itself, the brand presence, if people are seeing multiple modes of that same brand again and again here and there in the city, the brand is going to increase. The visibility is going to increase, basically. So, yeah, Gandhinagar seems to be a very promising and strategic location. Second store will be on the eastern side of Ahmedabad. Again, it will really have a good impact on the brand. In and around the world. The second question about See, whenever the store is happening, it is happening for a very long period of time. So, you know, we, this is too much a nascent kind of a stage wherein we would comment anything and... Ultimately, what it will land to, but let us look. Let the time pass. Let a month pass. We will understand how the market is reacting, right? There might be another news coming up suddenly. We don't know, right? The market will change sentiments. And I think you people are much better in understanding how quickly market changes the sentiments. So maybe, you know, we will just wait and watch. We are good at our domain at what we do, and we will continue to do that. Be it expansion, be it generating better profitability, be it growing organization, being fundamentally investing in the company's infrastructure.

This is all things that we will continuously do. Right, right. Now, I think the first question, the main thing was that why would you start with a smaller store? Is it just because you wanted to be a feeder store? No, it's a strategy.

It's a strategy. Large format, mid format, and small format are three formats of stores that just company will generally have. We have got two large format stores in Surat and Rajkot, and two mid format stores to start with Handi Nagar and Mani Nagar, which are considered to be a strategic location. So, any market which has a lesser population will have mid-format stores. Let's say if a market has a 50 lakh population, like Ahmedabad has 70-80 lakh population, there will be a large format store is good over there. If a Rajkot market has a population of, let's say, 20 lakhs, 30 lakhs, it will be a large format. If a market is having a population of, let's say, 10 lakhs people or 8 lakhs people or 6 lakhs people, then there will be a mid-format store. It depends on the size of the market. And then the decision will be made. It has got nothing to do with it.

Thank you. We take the next question from the line of Sahil Patani from Shrook's Capital. Please go ahead.

Hi, thanks for the opportunity. So, I wanted to understand what is the capacity utilization for FY26?

The capacity utilization is approximately 50% or 55%.

Okay. I know in one of your slides you mentioned that you were targeting maximum peak capacity utilization by 26. So is this, can we say like 50-55% is your peak, or do you think we have more room to grow before like going into like further capex and taking on more expansion?

Thank you. When I did an IPO, it was in 2023 December, let's say 54 fiscal year, the price was 60,000 rupees. Okay, my single artisan was able to do, let's say, 800 grams to 1,000 grams per month. And hence, I calculated the capacity to be, let's say, 2 tons. We have 200 carriers. Now, the gold prices has increased from 60,000 to 1.5 lakh. Now, the same artisan is still doing 1000 grams, okay. His potential is to do 1000 grams. So, in rupee wise, my capacity has increased to, let's say, 3000 crores from, let's say, 1200 crores before, right, when I did the IPO. So, because of the value of commodity, price gets getting increased. You know, it is right now, we are in a comfortable state still, despite doubling our revenue. You know, and I think right now, we are not looking for any kind of apex in manufacturing setup. We are at a comfortable scenario.

Got it. Got it. Thanks for that. And my second question is, Harit, with these four new stores coming up this year, by how much are you expecting to grow your top line and bottom line for 27?

You know, I think in the scenarios like this, we would really not give out the guidance for this year. Not that we are not optimistic for it or anything, but, you know, let us reserve this guidance. Let us talk about the month of April or mid-May. It has been good. April has been very good. You know, May, we are yet to have 15 days more, so we cannot even comment about the month May. But I think we, to talk about future or coming season or etc., we are optimistic. I can just say that we are investing, but Good morning, everyone. We don't know exactly, you know, what is, what is, what is going to be, you know, how the scenarios are going to turn up, etc, etc, etc. The market is huge, market is big. You know, it is not that India is a concrete consumer market. So nothing. We are looking for the market very aggressively. There might be a haircut here and there, but we don't know even if that is going to happen or not. Let us wait and watch. There is no guidance for this year, frankly saying.

Okay. Yeah, that is fine. Basically, because previously, you know, whenever you've guided, you've more or less met it, right? So it's fine that you're taking a pragmatic approach. But we expect in the coming quarters, when you see kind of the picture getting clear, you kind of give some sort of estimate in the future.

I would be very, I would be very honest, you know, in that, in that case, you would be getting guidance or etc. stuff. Once, see, it is too early. The government has just announced it in a very recent time. We, the market has reacted in a different way. We are waiting how the consumers are reacting. And, you know, it is too less a time for me to judge, generalize, or, you know, understand anything and tell you.

Yeah, no, makes sense. Thank you, Arita, and all the best.

Thank you. Thank you. We take the next question from the line of Dipesh J.A. Sancedi from Mania Finance. Please go ahead. Please unmute your line and proceed with your question.

Can you hear me? Can you hear me? Hi. Hi. Sorry, I've been late. I just landed there, sir. I just wanted to understand, I have only two questions. One of the strings are coming into wedding jewelry. How much of, you know, a competition would you face? Have you, especially into the B2B?

Not really. I mean, seeing their, I think they are coming into a plain gold segment of wedding jewellery. We are into an antique segment of wedding jewellery. So, as such, there is no competition. On the other side, the Ahmedabad antique jewellery is very different from, you know, another regional antique jewellery. And generally, when a company comes, it takes You know, time to mature itself in terms of any goods, whatever the product category they offer, you know, right now, we are not seeing any impact of Shringar as such.

Okay. Great, that's very happy to come. And the second thing is now with the current, I mean, the gold price is increasing, the government focus on, you know, reducing gold imports, more of, especially with this duty and sales increasing, a lot of gold from the black market would come in. How much do you see that the corporate business will be affected because of this? Because there will be a difference in the prices which the corporate will offer and what the normal jewelers can offer.

So, see, you are partially, you know, correct that the prices of, you know, the unorganized or the local jewelers would be different from the corporate jewelers, or their cost would be different, let's say. But consumer market will run on the brands, and, you know, the trust that they have, etc. So, let me, let this again, too soon for, To gauge anything because the news are very recent. You know, let the time pass. I think a couple of months or one month at least to observe will be a very nice thing. In fact, a quarter will be a very right thing. I think by August 12 when we come up, you should be able to say something more better and concrete. And how the IIJS turns up. You know, I know you have been visiting IIJS and etc. I think market segment, and I've always loved to talk. So, I think, let us look at the market, and I think, still, from the company's point of view, we are optimistic, but at the same time, we are conservative. We are conservative in the sense that we are not, from the current market level, the inventory is 20-25%, you know, conservatively. And I think those are the good signals that we are having. Otherwise, we are optimistic in terms of a long-term expansion plan.

Right. And if I can squeeze in one more question, you know, how confident are you, especially with the new store openings? You think that, you know, even in this kind of scenario, you will be having all the openings on the prescribed date only, or you want to, you know, go slow?

How you as an entrepreneur are looking into this?

So we want to enter the market in a season time. Market is big. Opportunity is there. There is a clear transformation from the unorganized market to the unorganized market. We really think there is an opportunity. Doing all the studies about the Pan-India players and etc. in Gujarat, their presence, etc. is really motivating us to go ahead as fast as possible and covering the market of Gujarat. I think we should... From the company's point of view, we should not waste more time and scale as much as possible. Short-term hiccups and all are okay. We are here for the business and for long-term. So, there is no question about consumption and there is no question about the transformation. Both are happening. The short-term things can, yeah. I mean, ultimately, if you see, Modi has told that one year purchase nahi kariye. It is not going to be long enough, likewise, also, this is on a lighter note, but the statement will, you know, let us see in a 1.2 what is actually happening. Otherwise, we are in for store expansions.

Okay. Always a pleasure to talk to you, Harith, and all the very best, and all the very best for the store openings, and we are looking forward to be in the store openings also.

Sure, sure, sure, Dipeshwar. Thank you. We take the next question from the line of Moksha Ranka from Auram Capital. Please go ahead.

Hello, sir. I want to understand we made around 92 crore EBITDA in FY26.

So can you provide me a breakup how much of it was in B2C and from B2B? Like a ballpark number to understand?

I think I don't have the numbers very much handy as of now. You are talking about the margins and etc. But what I can really tell you is, you know, I think from the revenue contribution side, sales of merchandise, if you look at it, we have 1251 crores, which is the total value of merchandise. Now, if you divide it into B2C and B2B, around 850 crores or 840 crores is into B2B and 408 crores are into retail. Now, breaking that up, I think it's a 3366 ratio, and generally we get a lesser margins in wholesale and in a B2B segment than in a B2C segment. I think there is a 3% or so margin difference. So, I think that will be sufficient for me to derive every numbers, beta, beta, OPM, etc.

Okay, and also, like, we are into antique jewelry, and antique jewelry is, like, the highest margin segment, in terms of mark-ups or whatever.

In terms of gold jewelry, yes. In terms of gold jewelry, yes. Otherwise, diamond would be the highest margin segment, but in gold jewelry, antique will be the highest margin segment.

Okay, so generally, like, what's the difference between gross margins

in B2B and B2C would be just 3%?

So, when you talk about B2B and B2C, the gross margins, I was talking about the OPM, but even if you say the gross margin, it depends on the national retailer or the regional retailer or the local jeweler whom you sell.

Yeah. But generally, would you like provide me a range at which like, for example, I think retail

would be around 10% to 15% gross margin you might have.

Yes, retail would be around 12% or 14% GP. Wholesale will be around 7% to 8% GP. B2B will be around 6% to 7% and 8% GP.

Thank you. We take the next question from the line of Raj Shah from RK Family Office. Please go ahead.

Am I audible?

Yes, Raj.

Yeah, so after considering Rajput and Sulath, what will be the peak date and are we comfortable at that number?

See, business is fundamentally right. Leveraging debt, we are right now under leveraged. I think we are very much comfortable given the position we are in. You know, to even have this year, we are having equity of 300 crores. By the time we open showroom half year, you know, we are almost in the quarter two of the next year. So I think we are in a very comfortable situation with respect to debt equity ratios, etc. Don't see any challenge over there.

So, 1 is to 1 we are targeting like 300 crores of equity and 300 crores of debt overall?

1 is to 1, 1.2 is to 1, 1.5 is to 1 is what we are targeting. It should be good. I mean, that's the right. We particularly believe even if you see in the peers competition, etc. People work at a high debt level. And meet any of the larger companies, etc. And I think those debts are reasonable enough. 1 is to 1 is, in fact, a right thing, but we can leverage it to 1 is to 1.5 also.

Thank you.

Thank you. We take the next question from the line of Rishi Kotari from Capital Breach Advisors. Please go ahead.

Hello. Thank you so much for taking my question.

Sorry to interrupt you, but your audio is not clear. Could you please use your hand, sir?

Is it order than half column? Thank you so much for taking my question. On the retail front, which more or less company focuses on going forward, as you said, we have two sets of retail store formats. One is flagship and another is mid-term market segment kind of a format, right? So, if you categorize those, because we go with population thing, that all this particular thing, we have our retail format channel property, but are there factors that influence the sort of retail format we go with our population?

So basically, the demographic study that we'll be asking for, what is the... You know, grammage of gold consumption per capita is what, you know, we will be understanding. We will be studying the competitive markets. We will be studying the, you know, the space that we really have inside that area, etc. We would be wanting to study, you know, in the catchment area of, let's say, around seven, six kilometers. Do we have another opportunity? You know, there's a lot of, you know, research that goes into it. But, you know, ultimately, ultimately, if there's a marketplace. And if it's a growing market space, we would certainly want to go in. We have an understanding about merchandise quite deeply as we are attracting into the same market of Gujarat, right? So Ahmedabad, we have got a very good success despite having zero legacy. You know, the store is new, fresh, the brand is new, fresh, and we have proved that in a few years in retail, even in the jewelry segment, things can roll up very easily. You know, and it gives us a real motivation to actually go forward and, you know, dive in other marketplaces.

Okay, understood. Makes sense. Now, following up with this question, I mean, of course, you already have to open new stores in the year one for you, but do we have any sort of future plans? I know it's a bit early to ask for it, but the year three or two strategy, I don't think this is a small set of, you know, I think most of the market that you're looking at is pretty much unorganized nature. I think that's where the real market capital could be for us. So, do we have that sort of future focus for the company?

See, if you're talking about placing the brand into tier 3 or tier 4 cities, if there is a consumption, I mean, why won't the brand go? Let us map out which are the low-hanging fruits. And basis on that, the strategy will be prepared where to really place ourselves or not. Currently, if you look at it, in Gujarat, Ahmedabad, Surat, Rajkot, Baroda are four prominent cities. We should be targeting at opening this kind of cities and making the brand more stronger by opening most within the same city.

So, if there is a good opportunity,

you know, for a tier 3 or tier 4 city, we see that, we will go forward and we will, you know, do it. But as of now, in this calendar year, 4 store is what is coming up, 2 large and 2 mid. The company is open for any kind of, you know, any kind of... So, retail stores for the coming year, you know, in the coming years, if the opportunity is there.

Okay, understood. Thank you so much for answering the questions.

Thank you. We take the next question from the line of Iyash from Dande Equity. Please go ahead.

Yeah, so... I just wanted to understand, I kind of understood what you just explained about how your wholesale manufacturing capacity is at 3-60%. With our retail growth endeavours for the next 2-3 years, when do you think our capacity will hit higher 80-85 digit numbers in terms of capacity utilization?

See, even if the retail stores are coming, the retail model is also getting the work done. You know, we are also getting the job work done from other vendor players. So, first is that using the in-house capacity versus doing the combination of getting the product sourced plus doing in-house. And in the combination really works well. And at least for a couple of years, let us understand where the gold price is heading, you know, what is actually happening, and then take a call. See, to increase the capacity is not a, you know, it is not going to be that much of a problem. The supply basically is not a problem. So, the issue would be that, you know, if the gold price jumps from here to, let's say, 2x, I don't know whether it's going to happen or not. In 60,000, we thought the prices are high. So, you know, if it is, then there will be almost no need of increasing capacity from here on. But let us study, let us understand the market better. Right now, we are at 50-55%. That is the truth. Right.

My second question is regarding this whole started jewelry segment, which seems to be the highest margin, highest growth business. You're looking at Bluestone, Carrot Lane, a couple of New Age players coming in, especially, I don't know about West India, but at least as far as South India is concerned, started jewelry is doing very well in terms of margins, EBITDA growth, revenue growth, top-line growth. I do get the focus on antique jewelry, but I want to understand from you that from lab-grown diamonds to studded jewelry, you know, everyday jewelry. What's your view on these elements? And as you know, when are we going to do something in this sort of market?

So, right now, we are not doing lab-grown diamonds. Right now, we are into the daily wear jewelry and the occasion jewelry, be it antique or diamonds. How much aggressively we are looking for traded jewelry, that is a diamond jewelry, if you are asking that type of a question, company will have a, you know, company as a whole has a view of still, you know, being into the segment of antique jewelry and realizing its potential. So you have seen that, okay, diamond jewelry does well in terms of margin, but in gold category, being the safest category, antique has a very good margin. So, and it's a very safe thing to play. Now with gold, you can really take the, you know, you can really take the risk of expansion, and there is no cash flow stoppage in this, because gold itself is liquid. So it's a good place to be in. If you strategically look at it, you can explore, experiment, you know, and if it, you know, fails even, let's say, 5%, 10%, then you can remelt it and reuse it. With diamond, it becomes tough. You need a very different kind of an ecosystem, etc. We as a company will be developing that. And the strength is antique jewelry. We will be utilizing the strength for the expansion. So, we are keen on taking aggressive steps in all the categories, or taking forward the steps in all the categories, but aggressively looking at antique right now.

Right. No, but do you see potential in the categories that I just mentioned to you?

Yeah, yeah, yeah. I see potential in diamond jewelry, studded jewelry. Why not? There is a market.

Right, because obviously, I mean, just on the diamond jewelry, I did read a post, you know, by Economic Desk saying that diamond, natural diamond jewelry is hit a decade in low or two decades in low in terms of their pricing, right? Natural diamond jewelry. So that is one thing. And the second thing is that at least as far as the next generation is concerned, right? The Gen Z or the generation above that. As far as they are concerned, I think they are more into everyday jewellery, nothing too flashy, you know, and solitaire and lab-grown diamonds and studded jewellery in a very basic sense. So I really hope you kind of look at that segment a little more seriously. The anti-jewelry is a great segment, but I also believe that the studied jewelry is a low capital intensive business compared to, you know, pure gold business.

I mean, let us look at the market. See, the size of market for antique jewelry itself is very, very big. So, when you're talking about other market, like, are we having diamonds? Yes, we are having diamonds as a category. Are we looking forward for that thing? Yes, we are looking forward for that thing. Now, lab grown and all, we are really not looking forward. And as far as the consumer behavior goes, the Gen Z and all, the first shopping that any girl does by herself is her wedding jewelry. Right? So, you can really take an example of your own families, you know, that when a girl genuinely selects a jewelry for her own, that is the first occasion, is always the bridal occasion. And post then, when she enters the stage of 30s, she basically enters into the daily wear segments of jewelries, celebrating her anniversaries and joyous occasions, etc. So, when they are selecting the paddle jewellery, we are right on it. We are sitting on the antique jewellery segment. So, who is catering to the first customer who is going to be a Gen Z customer looking forward for a gold jewellery? It will be our brand. In the positioning way, I mean the occasion wear. What you're talking about daily wear? Yes, Gen Z will wear daily wear. But when? Are they going to wear daily wear jewellery like gold and all in college times? No. Post the college time when they are getting married, they are getting married in the occasion wear and then they will be buying the daily wear jewellery on their any verses, etc. what I mentioned. Hence, this is how the consumer behavior is working for us.

Thank you. We take the next question from the line of Rajan Dharpasi from NP Analyst. Please go ahead.

I'm already.

Yeah.

So I wanted to ask, like, as the gold prices have risen so much, right? So across industry, we are seeing a trend that there will be, you know, exchange of gold will happen more as compared to the new gold buying by the customers. So what kind of trends are we seeing right now? And what do you anticipate on this part?

See, the sense of, you know, it is too early to comment on what is the trend that we are seeing. Like you, we are also observing, are there walk-ins in the store? Yes, there are walk-ins in the store. Is the business happening? The business is happening. Now, if you are telling me to show a trend, basically, we will be motivating people to exchange gold. Do they really want to exchange? Depends on them. Do they want to listen, not listen, behave in whatever ways we are here to analyze and then react. Okay, our intention is to sell jewelry in whichever mediums it is possible, be it exchange or be it a fresh buy. Now, you know, I think more or less it is, you know, the gold prices have risen, etc. This has happened in the past, in historic ways, gold has always risen. And we see that generally 40-50% of the jewellery is exchanged and 40-50% or 50-60% is a new buy. Will this trend change? I don't know. Let me gauge it for at least a month or two or a quarter.

So, as of now, you are saying that it is already at 50%?

Yes, it is showing the same momentum, a little bit exchange has increased, but this is too soon a data. I mean, what I will tell you in 3, 5, 10 days.

Yeah, that is fine. And my second question is, like, from, and if I have heard it correctly, you mentioned that from the starting of FY27, we have started on the daily year segment as well.

So, what kind of, yeah.

What kind of growth are we expecting, or do we have any internal numbers from the retail side, or what kind of orders are we expecting, or have we had any discussions from our wholesale side, whether it is from the job work or B2B side?

So, we are in daily wear segment. We are already doing good daily wares in terms of our retail store. The consumption is approximately 35% of daily wear and 65% of occasion wear. Now, when it comes to me-to-me segment, we are doing a pilot testing. In IIJS, we will be launching a few varieties of daily wear. Let us sense how this comes across. And the course that I think, course the learnings and the learning curve will be developed and then we will be telling you how are we really launching it or, you know, this is just a pilot testing that we are doing for B2B side.

And in carat terms, like, what all have you launched like now, like from 10 carats or maybe 18 carats, 20 carats?

Yeah, so antique jewelry, 18 carats is what we have really sold in the quarter three. There is a good interest of corporates looking for 18 carat antique jewelry. The company has also made some color stone collection which was needed again by a corporate, and it has turned out to be a positive response. But these are collections. Let us see the longevity of it. You know, let us then understand, you know, what kind of market. Generally, the sense is that low-caratage antique jewelry is... You know, it's still an experiment. This season or this coming year, we'll actually be able to translate that what, you know, how much kg will be produced in that category. But yes, we are producing 18-carat jewellery as well as a little bit of colour-stone jewellery also that we have got on us and we have dispatched.

And what about from the daily wear side, on the carriage side?

So, daily well side, we are, I told you, right, pilot testing has been done, and in August, we will understand what is the, you know, how did it work, did we get orders, you know, do we need to improve our products much better, you know, what is to be done. That segment will, you know, we will understand it better once, you know, we get the reviews from the market in a very stronger way, and that is the right platform for that would be an exhibition.

Got it. But as you already mentioned that we are already doing

35% in our retail forum, right?

So can you provide like the details on that part, like what kind of carrot are customers generally, you know, picking up?

Gating carrot is generally picked up more in terms of growth. Gating carrot is gaining more growth than 22 carrot. But 22 carrot still remains as a preferred category.

Thank you. Ladies and Chairman, due to time constraint, that was the last question, and we conclude the question-answer session. I now have the conference over to the management for their closing comments.

Thank you all for participating in the earnings conference call. If you have any further questions or would like to know more about the company, please reach out to our Investor Relationship Manager at Valoram Advisors. Thank you.

Thank you. On behalf of Valorum Advisors, that concludes this conference call. Thank you for joining us. You may now disconnect your lines.