Goldiam International Limited (GOLDIAM) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Koldiam International Ltd. Q1 FY27 Earnings Conference Call hosted by Monarch Net Worth Capital Ltd. Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance, and it may involve risk and uncertainties that are difficult to predict. 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 this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rahul Dhani from Monarch Network, Capital Limited. Thank you, and over to you, sir.

Yeah. Good afternoon, everyone. Thank you, Palak. On behalf of Monarch Minot Capital, we are delighted to host the Senior Management of Goldiam International. We have with us Mr. Ashish Bansali, Executive Chairman, and we have Mr. Anmol Bansali, Managing Director of the company. We will start the call with opening remarks from the management and then move to Q&A.

Thank you and over to you, sir.

Thank you, Rahul. Good afternoon, everyone, and welcome to Goldiam's earnings call for the quarter ended 30th June, 2026. I would like to thank Monarch team for hosting this call. Goldian continues. Its strong growth momentum in Q1 of FY27. Goldium reported total revenue of 3,637 million for Q1 FY27. Other income of Q1 FY27 included tariff refund received by the company. Goldium's EBITDA for Q1 FY27 grew by 120% to 1,039 million rupees. Steady state. EBITDA margin post-tariff refund calibration grew by 400 basis points to 24%. Profit after tax for Q1 FY 2027 more than doubled at Rs. 740 million. Lab-grown diamond jewelry exports contributed to 90.7% to the overall export sales mix during Q1 FY 27 compared to 87.8% in Q1 FY 26. Online revenue accounted for 19.3% of the revenue during Q1 FY27. About 64% of the inventory finished jewellery, as on June 30, 2026, is with customers as finished jewellery. Stock of jewellery to be sold in subsequent months to their customers. Goldium's order book position as on June 30, 2026 was about Rs. 2,250 million. Cash and cash equipment, including investments, were at Rs. 4,566.7 million as on 30 June. In July, the company allotted 3,76,39,281 equity shares of Rs. 2 each as fully paid-up bonus equity shares in the proportion of 1 is to 3, by utilizing an amount of Rs. 7,52,78,562. Now, let me share updates on Origin, our India-focused B2B Laperone Diamond Jewelry retail brand. As on date, Goldium has 26 operational stores under the brand name Origin. Across key cities, for Q1 FY27, Origin recorded a total revenue of Rs. 81.56 million. The Origin team is working on sales improvements strategies by introducing various sales enablements across the stores. In Q4 of FY2026, we introduced India's first digital 3D ring builder. During Q1 FY2027, we introduced light-grown diamond jewelry in 9-karat gold and introduced gold gold exchange scheme across all the stores. With this overview, I am happy to open the floor for questions. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Dixit Doshi from Whitestone PMS. Please proceed with your question.

Can you hear me?

Yes, sir.

Yeah, thanks for the opportunity and Congress for the excellent performance, especially into the B2B segment. So, if I see our end of June and our order book was 225 crore, and last year at the end of June quarter, it was 140 crore. So, it clearly shows that there is a good, you know, order book year-on-year, but if you can elaborate more into the demand for Q2 and also for Q3, considering Q3 is seasonally our best quarter, so how are you seeing demand at the ground level in U.S., and what led to specifically, you know, the 40% IOI growth in the Q1, if you can elaborate a bit more on that. And also, you have, you know, last quarter touched upon the launch of bracelet and necklace category in the US. So, have we done that, and how was the initial response you can mention?

Hi, Mr. Doshi. Anmol Bhansali here. I will take that question on and then open it up and request our chairman to add any comments. So, let me start with your follow-up questions. We have launched the category of bracelet and necklaces in the later half of the last financial year. That has played out very well with select customers. We've, in fact, been able to add some new customers in the wholesale segment in the U.S., particularly solely for the bracelet and necklace categories. We are still working on adding and increasing our share of this category and introducing it to our large retail customers. That will further add fuel and growth to our overall business profile in the B2B segment. Overall, this, along with deepening presence with our existing retail customers in the U.S., as well as deepening and introducing new customers in other geographies, particularly Middle East, Israel especially, have led to the... Enhanced growth seen in Q1 FY27 this year, we've been able to successfully add and deepen new customers in these geographies, which are non-U.S. geographies, as well as, of course, as per our ongoing strategy, deepen presence with our existing retail customers in America. With regards to Q2, Q3, we, again, are very... You know, confident moving forward into the coming quarters on our sales pipeline and building, as seen in the order book, and further deepening of presence, as seen in Q1-FY27. We are looking forward to a robust Q2-Q3 compared to an already record FY26, and we hope to continue the growth. It will be our endeavor to, you know, provide the... Further, stronger presence for Goldium for our key retail customers in U.S. and globally. I'll request our chairman to add any comments if missed on anything.

So, Mr. Doshi, also the reason, very important reason why we had 40% growth this quarter was also that a lot of goods that were with our retailers actually sold. They sold very well. Lab-grown demand all over America is picking up very strongly over natural diamonds, and Goldium is a clear beneficiary for the same. Thank you.

And you mentioned about Middle East and Israel, so can you give some number? How much would be our outside US B2B business?

So close to outside US, the B2B business still remains small because we started just last year, but the traction and order repeats are very strong, and the bracelet and necklaces that we've introduced in Middle East and in Israel is doing very well. So we hope to increase that number in a good way by the end of the year. So we'll be able to report to you that we'll have a double-digit growth in non-American areas as well. Okay.

And now, my second question is regarding, you know, margins. So, you did, you know, mention last quarter that FY27, we will see margin expansion. And, you know, so there was one doubt, let's say, when you report the numbers, you impure the entire other income and calculate the EBITDA margin. Generally, we, you know, exclude the other income and compare the EBITDA margin. So, if I exclude the other income, then the margins have not gone up. So, how to look at it and, you know, in this 37 crore other income, I think 15-16 crore would be tariff refund. So, for the remaining amount, was there any, you know, forex gain? That's why you impute it in the EBITDA margin, or it is more or less, you know, interest income on the treasury.

Sure. Thanks for the question, Mr. Doshi. So, we have been consistent even in our prior calls to state that our EBITDA margins we look at, including our other income, because always a substantial portion of other income at Goldium is stemmed from exchange and Forex changes. As I mean, until last year or a year and a half ago, we were 100% export company. And even till date, we are over 90-95% an export company other than Origin. So given the current standing and the build of our business model, the exchange income is a natural outcome of our business where we are investing in. In memo inventory and a sales pipeline in the U.S. while being domiciled in an SEZ in India. Having said that, even in the prior call and in the last fiscal year's call, I was happy to state that we will have a steady state margin expansion over the prior year. This is as per our definition, including OI. And yes, we are happy to showcase these results in Q1 FY27, where steady state margin, EBITDA margin has inched up to 24%, significantly higher than Q1 FY26 or FY26 as a whole. This is, again, walking the talk as to what we have shared on our prior commitment, and driven by the dual and hybrid casting method, where we are casting in the U.S., delivering U.S. product of origin as a key supply chain solution for our customers, whilst also not bearing the brunt of changing tariffs, regardless of what they are. So, because of this dual-casting method, we are able to inch margins upwards. FY27 will be most likely a full financial year where this dual-casting method will be employed throughout the year. Regarding Q1 itself, out of the other income described, 22 crores approximately has come from tariff refund, tariff duty refund. The balance has come split between... Forex gain as well as treasury gain. That, even if you keep consistent over the quarters, you will see that even removing the 22 crores, there is a very substantial growth over Q1, FY26, taking the same metrics into consideration and all other things being equal. So we're happy to inch upwards as committed and shared with our investors in the prior corn call, And we hope to maintain and continue this margin profile as FY27 will have a full financial year of the U.S. casting and dual hybrid casting model.

Thoughts on, you know, franchising model or a brand and this and this.

Sure. Thank you, Mr. Doshi. So, we have signed about another seven stores which will be active. These seven stores will come in between now and... is to get them open by pre-Diwali, pre-Dhantedas, and then post that we will review the business of Origem, and the whole and sole work is being put in place to increase sales per store through our program of sales enablers, as our chairman had rightly identified in the opening remarks. I'm happy to share more details on that later in the call as well, and the sort of work that's going on to further increase and make the business, ongoing monthly business of Audi Gem, on a per-store basis, even healthier. We will then, of course, calibrate basis on opportunities available from real estate, key mall partners, as well as if there's any successful regions which we want to expand faster than regular due course of affairs.

All right. Thank you, sir.

Thank you, sir. The next question is from the line of Agam Bansavi from Dalal and Broca, Stock Broking Private Limited. Please proceed with your question.

Yeah. Hi, sir. Thanks for the opportunity. First of all, congratulations on great set of numbers. So, I just have one accounting question. So, other income has increased this quarter, which includes a tariff-related refund. So, can you clarify whether this refund has already been received in cash or it's yet to be realized?

Yes, Mr. Ghansali, the refund has fully been received in cash by Goldium USA Incorporated and already within the company.

Okay, okay. And one more question. So, as more players enter the lab ground diamond jewelry space, so how do we see the competition evolving and how are we able to differentiate it?

Yes, so, you know, great question. I think this is the, you know, ongoing situation with Slapdome Retail in India. We believe at Origem, we have two to three key differentiators, which will be very visible over the long term standpoint. One, of course, is the design strength that comes from what we see globally, global bestsellers, and the backing of a publicly listed entity like Goldium, which is a vendor of choice for a lot of retailers in the U.S. We are leveraging that design experience in order to bring the right and high quality of design and manufacturing into origin. A quick example is that especially in the ring segment, which is Goldiam's specialty in the U.S. market, almost every ring at Orijam has been sold at least 200 to 250 times globally before we even introduce it at Orijam. This is an ongoing exercise that we do every month and every quarter. Secondly, on the aspect of team, right? So, Goldium has a specialty in... We are manufacturing, sourcing of diamonds, manufacturing of jewelry, design expertise, and we are marrying this with a very strong, well-performing team on the retail side that has come in from some great retail background companies. We believe this is already shown as an example in the sort of distribution that Origin has cracked just within about a year and a half of launch. As a young brand, we are perhaps one of the only ones present at some of the key malls of our country, few of which are like Phoenix Palladium Mumbai, R-City Mumbai, Elante Chandigarh, South City Calcutta, Nexus Kormangla, soon to be in Phoenix, Bangalore as well, and so on and so forth. Phoenix Chennai as well. So again, the distribution strength. and mall-based companies will further help define the longer-term trajectory for our company. And see, I think, given, again, Goldium's trend, we have a financial muscle that's available to us, partly, yes, as the QIP funds are within the company, and partly also through the ongoing sort of backing of Goldium to things like gold, metal, loam, which helps extend and sort of We sort of minimize the outlay of immediate inventory when we open a new store such that we can sort of help have our sales from the first four to six months of a store itself subsidized partially the gold that's being invested in each new store opening. Again, this is due to having a parentage in the form of Goldium that is an established jeweler and jewelry manufacturer in the country, which otherwise would not be available. This, along with, this is unique things which are unique to Goldia, which no startup can really compete with, where I think, again, the benefit of which will play out in the longer term. In the more short and medium term, we believe distribution will be a key edge, and we are hoping to continue to build the right quality and high quality of distribution, which currently no other young competitor can compete with. Number two, further working on Clinton England, as our chairman has mentioned, that effectively through multiple different ways and efforts that are going on, effectively the end goal is to increase revenue per store. That itself will help create and increase revenue per store and increase the ongoing customer base of origin such that year-on-year, same-store sales growth is extremely strong. And I think these are the initiatives which will differentiate us in the more short to medium term. We will, you know, hopefully announce new tech-driven leadership sort of opportunities as we have with the RingBuilder in the coming quarters too, along with policy changes which will differentiate Origam further to help that sales enabler standpoint become even stronger. And then tied to that is the fact that I don't think VC funding will be as prevalent for your number 5, 6, 7, 8 player as it has been in the earlier days, which was effectively till date for the lab-grown diamond industry, jewelry retail industry in India. So we are confident that as the next two years come through and store maturity increases for region, store depth and breadth also increases, we will stand out amongst competition due to the short and long-term factors mentioned earlier.

Okay, sorry, okay.

Thank you, sir. The next question is from the line of Anubhav Mukherjee from Prescient Capital. Please proceed with your question.

Hello, am I audible?

Yes, sir.

Yeah, so my first question is in the B2B report business, can you say what is driving the sharp, increasing realization of life? From the last year's last financial year to this year.

Thank you, Mr. Mukherjee. It's a little easy, but I believe your question is on the realization on per piece of jewelry on the B2B business. Perfect, perfect. So that is defined by, we only sell finished jewelry again, complete diamond-studded jewelry. We don't do any plain gold, nor do we do any loose diamonds. So on a finished jewelry standpoint, there are two factors that, of course, drive our ASP. I think there's, of course, our quarter-on-quarter changes, but on an overall standpoint, the movement into LabGron has been very positive for our ASP as a company as a whole. Now, these two factors are, one, gold, which has, of course, gone up on a year-on-year basis, and the other is diamond value. Particularly in lapro, what that means for us is that the value of diamonds utilized per piece of jewelry has also gone up, driven by the fact that we use a much higher number of cadets. In last round jewellery than we do in natural diamond jewellery, and it's this consistent movement towards more characters per piece of jewellery in terms of diamonds, as well as the baseline effect of gold and gold prices. Together, that helps drive our ASP. So, this is the main research.

Great, Jack. And, sir, like, how are you seeing the trend of, like, both wholesale and retail prices of Latgum, Diamond, and, like, your team in markets?

So, you know, as mentioned, even in our FY26 calls, we are... We have been consistently saying that lab-grown diamond prices have reached a base. In fact, in this quarter, we have even seen prices move upwards for certain sizes, especially the smaller sizes of lab-grown diamonds. This is driven by, of course, labor increases as well as the pricing of fructs. But it continues to come back to the point that we see wholesale prices hitting a base, and we don't see large scope for erosion of prices from where they currently stand. In that sense, we believe it's a great time to invest in inventory to sell both B2B as well as in B2C market in India. On retail, I'm sorry, Mr. Mukherjee, but we won't be able to provide great clarity there as we don't control or really review the retail prices of our customers. However, at least on the wholesale side, we can share that there is a strong base established and prices have been fairly consistent, if not even increasing on some of the smaller sizes.

Yes, thanks for that perspective. I'm sorry, like I was reading that there is some media wrong, but like I read one article that said that there is some increased competition from like Chinese CBD manufactured lab-grown diamonds. And this more increased acceptance of like at least in the smaller characters. So are you seeing any any impact of that? Like some perspective?

Sure, sure, Mr. Mukherjee. So, it's a great point of clarification also. At Goldiam, as we don't do cutting or manufacturing of diamonds, at least not on scale, other than our own grown production from eco-friendly diamonds LLP. Any of such articles that talk about the prevalence of Chinese CBD diamonds or Chinese HPHC diamonds or local-grown enhancement of capacity of CBD, etc., in fact, don't really impact us because that forms the supply side to Goldiam and our Goldiams activity. As a largely pure-plate jewellery manufacturer and distributor, any increase or change in quantum of diamond supply available will, of course, any large change will only serve to in the long-term benefit codium and add to our supply chain strength by enhancing the number of vendors that we work with. Again, to clarify, we don't do any loose diamond sales, no loose diamond trading, and other than our homegrown rough, grown through eco-friendly, no loose diamond manufacturing either. Everything is purchased as per jewelry demands and jewelry requirements when orders are pre-sold to customers. So I hope that explains where we stand with articles regarding diamond supply.

I get that. But just a small follow-up, the increased supply does it not put any pressure on the like wholesale pricing of jewelry as well or like we are insulated from that?

So, again, this is on loose diamonds, not on finished jewelry. On loose diamonds, wholesale prices have been fairly consistent. Any increase in supply is coming in with demand growth itself. Prices, again, on the wholesale side are very, very nominal compared to the cost of production itself. So there has to be a sea change in technology to further drive costs down from where they are today. Again, we are not in a position to comment if that is happening, who is working on it, where that's happening. To the best of our knowledge, given the current method of production, prices on the wholesale side are fairly... At a strong base, without major scope for erosion from here.

Yes. And for my last question, from the final demand side, over a two-to-three year period, can you share your perspective on how do you see on the demand side, what are the trends here?

Sure, absolutely. So, just dividing that question into B2B and B2C, I think the B2B business is firming up even better than we had expected. Our ability to increase non-U.S. customers, to deepen presence with U.S. customers, both are resulting in fruit that is visible to our shareholders. We believe, again, there is scope for further penetration and depth within our B2B business, as well as product expansion and new customer addition. So across the board, I think, you know, there is scope for Goldium to drive jewelry sales on the B2B side upwards. We exited FY26 about at 1,000 crore revenue, which was a record year for us. Over the medium term of Three to four years, we hope to strongly increase on that base and deliver, you know, have a larger company and presence, especially amongst our U.S. key customers, and management is working on this trajectory primarily, along with deepening a new presence with global wholesalers and retailers also. So, on the B2C side, Origin is shaping up well with further... Depth available, even with our existing stall, becoming a full-stack jeweler, having a lot more presence on sales per store per month, deepening that position that we have. As previously mentioned by the prior participant, given the competition in the industry, as it consolidates... Over the longer two-to-three-year period, we believe we will be in a great position to reach close to that 100-store figure that we are aiming and targeting towards with a much stronger sales per month per store metric that, again, we have targeted interplay. Overall, we believe the organization has significant runway for growth. Faster growth in B2C, but also, as shown in Q1, very healthy and steady growth left to do in B2B as well. We hope to continue on this path, and over the next two to three years, drive a business which is truly amongst the largest jewelry exporters from the country. I think this is a good time to also open the floor to our chairman and request any further comments. Hello.

Yes, sir.

Yes, just requesting our chairman to add, if any, further comments on the longer-term growth trajectory.

Longer-term growth trajectory, I believe that we are in a great position to improve our businesses, both in B2C and B2B, and I think Anmol has clarified in depth regarding both of them, so I think we can proceed.

Just a small follow-up, like, will it be possible to share, like, what share of our D2B export business is to U.S. and what is non-U.S.?

Sure, of course. As on FY26, So, over 90%, 90% to 95%, I'll be able to provide the exact number on email. But in that range, that was our U.S. share versus non-U.S. coming from the balance. Certainly, FY27 will have some positive movement towards non-U.S. on a smaller scale, as mentioned by Arch and Han. However, we would be happy to share those detailed and exact numbers on email.

Thank you.

Thank you, sir. The next question is from the line of Bharat Gyanani from Money Control Research. Please proceed with your question.

Yes, sir. Congratulations for a great set of numbers in quarter one. So two questions from my side. One is, just wanted to check that, you know, we have been reading that the LGD segment has been getting a lot of traction in the U.S. market, and hopefully it catches traction in Indian market as well. But on the US side, I just wanted to check what would be the share of LGD in the overall jewelry space, and what is the industry growth that the LGD is witnessing in the US market? That is my first question.

Thank you, Mr. Bharat. We don't have industry reports, but from last, speaking to consultants within the industry, especially on the major retailer side with whom we work at Goldium, we believe LGD share is between the 40% to 60% range, depending on type of retailer, retailer, segment, etc., within the major and the larger corporate customer space that we can address.

Okay, and what is the growth rate that the LGD industry is seeing on a year-on-year business? I'm talking on the industry front, because we are increasing market share.

Yes, yes. So, in the finished jewelry segment, lab-grown diamond jewelry in the U.S. is looking at healthy double-digit growth. Of course, we believe that this growth will continue for the medium-term ahead, medium to longer-term ahead, as most large corporate U.S. retailers transition to a majority and predominant lab-grown diamond showcase over the coming few years. So it's in healthy double digits. On a finished jewelry sample.

Okay. And second, what would be our market share in the U.S. market as far as the overall LGD jewellery is concerned?

Yes, Mr. Bharat, still very, very small. You know, just to give an idea, our largest customer in the U.S. does about $6 billion of retail sales. They would have about... 2 to 2.5, about 2 billion of, 2 to 2.5 billion of wholesale purchase value, which is our additional segment with them, and we currently form about $35 to $40 million of annual sales to them. So, less than 2%. There is scope to... Certainly triple, if not quadruple those numbers, and that is just our share with the largest retail customer that we currently have. There are major retailers whom we don't currently work with who we would love to add on to our customer profile over the coming years, as well as, as mentioned, further deeper presence with existing customers as highlighted through this example of our largest current customer.

Okay, okay. So just one clarification, this LDD 40-60% penetration you said, that would not be of the overall jewelry market, that would be some particular segment that you are talking of for the US market?

Yes, Mr. Bharat, that's with the major retailers, corporate and major retailers. Effectively, those are retailers that address the same more or less addressable price point and segment that Goliam sells to, which is upper, middle, and premium income jewelry, not luxury or super luxury. That is not being manufactured in India at the moment.

Okay, okay. Okay, sir. Great. Thanks, and all the best to you. Thank you. Thank you, Mr. Bharat.

Thank you, sir. The next question is on the line of Ankush Agarwal from Search Capital. Please proceed with your question.

Yeah, an audible? Yes, sir. Yeah, can you share the profit or loss for origin for the quarter?

Hi, Mr. Agarwal. We'll be able to get back to you on that. We have the segregated detail, but I'll have to separate out all of them, particularly in terms of the P&L. There will be a box, just to give a ballpark sticker, it will be in the range between 5 to 6 crores of operating loss for the water.

Okay. Secondly, I think one of the comments that has been consistent over time has been the fact that our share with some of the largest retailers in the US is low single digits. And even for them, I think the fashion LVD segment has been going at more than 30-40% kind of rates. So just wanting to understand, given the time that they are growing so fast in LVD and our share with them is low single defense, you clearly mentioned that there is easily room for us to triple or quad-tiple that number, then that will sort of mean that there is a fairly large and strong growth runway for the B2s over the coming year. But otherwise, the commentary for the B2B has been good, but it isn't as strong as what some of the qualitative comments that you sort of just said. So just trying to understand, is the other part of B2B, some part of B2B business, not growing, like maybe the wholesaler path or smaller retail path, or what is it in my opinion?

Um, so, so, so, yes, I think, you know, we are also a baggage jewelry first manufacturer at Goldium. So, engagement rings, wedding bands form the significant majority of what we sell to the U.S. Again, this is structural and basis on choice in order to drive a higher ASP and subsequently a better margin profile than our competition. Fashion jewelry is factually at a much lower average selling price and price point and also has a much shorter life cycle in terms of being in stores, selling, and reorders coming in in subsequent years. As a result, you know, the management decision has always been to focus on bridal jewellery. Particularly, as you've rightly seen, lap-grown diamond jewellery is growing well in the fashion segment now that it is already a large part of bridal. I think in fashion also there is significant movement in porting of the choice of diamond that retailers and subsequently U.S. kathmas are buying from natural to lap-grown. And as that happens, our decision is to play it through the category of tennis bracelets, tennis necklaces, and higher total weight or higher value fashion. This does two things for us at Goldium. One, it, of course, utilizes our bench strength of... Higher quality tarigas and setters, polishers, filers, etc., which are generally catered towards bridal jewelry to refocus their energy. Not refocus, but also add on categories which require higher quality finishing. And secondly, it is... is to maintain, if not even further grow our ASP, because high-value tennis bracelets, tennis necklaces will only further help to maintain and grow our ASP, thereby also protecting factory operating margins and manufacturing margins. So that's how we look at it. We will be investing, as I mentioned at the start of the call also, we've seen great pickup of this category from particular wholesalers. It's not yet, you know, we've done a couple of introductory meetings with our retail customers, but it's not really present or there in large value or numbers. We hope over Tuesday. Certainly over Q3, that we will be able to introduce this category, test it, and do a testing cycle of that, you know, one year or so, and further become a dominant presence in this category outside of gradual jewelry as well. I think it will give us great legs to further grow and maintain the sort of B2B growth we have been seeing in the past.

All right. So I think one of the comments a few quarters back was that bridal is about 85% for us in the US and 15% is fashion. So as that number goes, the fashion part is from 15% and like over the medium term, can this number sort of increase significantly or it would be like a gradual scale up for fashion in terms of resilience for us?

It will always, so the modeling that we have within our industry, we have to do a testing cycle, invest in inventory, which is on consignment with US retailers. They test it, see the percentage of returns that come in, see if there's a percentage of product related, and really have that longer testing cycle of about a year. So that is always even the reason for our higher inventory and having investments in inventory at Goldiams, which is, as we declare in every quarter, kept with end retail customers in the U.S. It's always new product that is on test. So that cycle takes a year, as a result of which there will always be a gradual increase of movement If we strategically choose to add-on inventory in a certain segment like high-value fashion.

So I would like to add on here, Mr. Rankush, to whatever Anmol has explained to you, that for the wholesalers, already high-value fashion has been introduced, and that will grow very strongly in America. And retailers, again, it's an investment into their consignment dollars. That's one thing. And second thing, I also want to make it a point, you know, the growth of GoldieM. Last year, if you see this quarter, it was 235 crores. That was the time Mr. Donald Trump, the president, introduced duties and tariffs at that time. So the company endeavoured into, you know, taking all the sales that were supposed to happen in the next quarter and tried to ship it earlier to help save tariffs last year. So when you compare, right, that even on something that we did last year to 235, and we still grew on that number by 50%, is truly an achievement on the type of business that Goldium did with wholesalers as well as retailers in fashion as well as bridal.

Yeah, not complaining about the growth. The growth has been very healthy. I think one of the commentary for the most part has been that B2B is like a 20-25% sort of growth suggested, isn't it? But given the execution that we have seen, the opportunity that we have seen, and you know, how the LDB part is growing, the thought was that why not the growth should be faster is what I was trying to understand, but I get your point. That will work.

Thank you. Yeah, so we don't want to put any forward-looking numbers straight away, but we are positive for the growth of GoldieM into these segments very strongly. Got it. Got it. Thank you.

Thank you, sir. The next question is on the line of Kumar Saurabh from Scientific Investing. Please proceed with your question.

Hi, thanks Anmul for a great set of results continuing and surprising us. My question is first on the B2B side. The new segment which we are trying in the fashion jewelry side, are we going to penetrate the same end clients with this new segment or we will have to find a new set of clients to scale this business?

Hi, Mr. Saurabh.

Yes, so we have already new wholesale clients that are, in fact, unique to this segment for us. On the retail side, which is by far a much larger opportunity, it will be the same existing set of clients. However, of course, they're fashion buyers or fashion departments, etc. So same brand or corporate, just a different set of buyers that are in charge of fashion as opposed to bridal jewelry.

Got it. Other question I have is I think bulk of our export B2B side is coming from US, but Europe, like UK, Germany, they also look like big market. So do we have any plans of expanding into those markets for B2B?

Yes, Mr. Sorob, so we do, you know, we do want to expand into Europe. It's a more medium-term goal we have. But again, strategically, you know, as management in the company, what is sort of... SAC was sent to us as having a healthy margin profile, not necessarily as strong as it is in Q1 this year. Of course, that is very important for the U.S. business. But other regions, it's very hard to pull out to this sort of margin profile. And just to explain why on a product level, most of Europe, other than the very high-end or very luxury jewelers, which are the France jewelry houses, most of Europe doesn't have an upper middle and premium income segment and consumption class for fine jewelry. It then drops all the way to the very, very low end, which ends up being silver or, you know, very little amount of diamonds studded in fine jewelry, dainty pieces of jewelry, low number of carats, low number of diamonds, and low quantum and value of diamonds. As a result, while there is a certain amount of jewelry that is, of course, sold, it is hard to deliver a strong margin and growth coming from servicing these regions, and this is further compounded by the fact that there are no... Large retailers that work continent-wise. There is, of course, a large national retailer in Germany, large national retailer in France. All of them cap out at around the 150 to 200 store range, making even the number of pieces that you can sell limited. So, both in terms of distribution, distribution scale-up and opportunity is limited, and product profile is not very beneficial from the margin and production standpoint. So, yes, while it does help because there is a faster turn of inventory, there is a lower investment cost in inventory, and, of course, geographic distribution is something as management we should also keep in mind and consider. And with that in mind, over the medium term, we would love to add on, you know, certain revenue coming from these geographies. The most profitable region in terms of a sales distribution plan will and always will continue to be the U.S. And also the deepest in terms of revenue potential, size of revenue, and large corporate retailers that have 200 to 800 stores per event. And so, you know, that's the sort of... Give or take that we have to consider while looking at other regions. We are going to, in this fiscal year, further see, and hopefully see, provided meetings go well, deepening of presence in Australia, which has a similar consumption pattern to the U.S., Canada, which has, again, similar consumption pattern to the U.S., and, of course, Israel and Middle East, where we have seen good penetration through working with some large wholesale In that particular region. So that's the more immediate FY27 sort of visibility we have for geographic distribution without changing the inherent product that we do so much.

Great. Thanks for the detailed response. And two questions on origin. So, first question, origin is in the market. Basically, there are three business models. One is pure physical model, and then some are going for pure digital. And some started with digital online model, and they have gone for a, you know, omni-channel kind of model where digital pushes the footfall. So, from business model perspective, I know these are early days, but are we going to be only physical? And I'm not talking about just about having a best website because, you know, digital is a big investment, workforce and all. So, how is going to be our business model for Odijem? Do you see the digital side being very, very strong where we put some serious, you know, marketing budget, some serious talent, or are we going to be more physical?

Sure, Mr. Saurabh. So, I'll just add some context. I think it's a little early for us to take that decision. And I'll tell you why, from our standpoint at Oredem, everything that we sell is fine jewelry, which is lap-grown diamonds studded in gold. Now, this is 14 and 18K largely, but also now we've introduced some 9KT gold. What's happening as a result of the gold price increasing itself for, globally speaking, is that in origin of the average ASP, the average sales price has gone up. And after a certain level, it's very hard to convert customers online. Therefore, the focus of the company at the current stand will be physical, largely. However, we do activate customers and do top-of-funnel marketing digitally, Activate them digitally, walk customers through even investing in a WhatsApp AI bot, which hopefully will be launched soon. Activate them via WhatsApp and Instagram, which are primary meta platforms, and then get those leads converted in store. because our ASP is north of 70,000 at current moment. Again, that's why I'm sharing this context is to explain why it's largely physical, even though we may activate and spend money digitally to generate hot leads for our stores. Over time, I do believe there is definitely a market that we can serve at Origem through introducing certain product categories in silver, through deepening penetration and presence in product categories like 9KT. These products itself, inherently due to the costing and raw material price points, allow for enough inventory below 20,000 rupees, which is where you really see online jewelry sale be a significant portion. So, at current moment, it's not part of the agenda. However, I'm pretty certain over the coming fiscal year, as we introduce some of these lines in whether silver or 9KT, we will... So slowly increase our digital spend, restoring the sales come through from that digital spend as well.

Got it, got it. And my last question is on ORIM, our oldest.

Sir, may we request that you return to the question queue for follow-up?

Sure. Thank you.

Thank you, sir. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference call, please limit your question to one per participant. The next question is from the line of Vivek Gautam from GS Investment. Please proceed with your question.

Yeah, am I audible? Yeah. Yes, sir. Kudos on the date number, sir. One query we have is how come the margins have, gross margins are lower at 30% this quarter, lowest in last 10 quarters, sir. And any new customer addition in US like Costco and Indian origin quarterly exit rate. Thank you.

Thank you, Mr. Gautam. So, I will have to review. To the best of my knowledge, our gross margins are, in fact, higher. But we will just double-check on those numbers and get back to you. We believe it's significantly higher than previous quarters, but let me again double-check and get back on the console numbers. And then on your second question regarding new customer addition, it's been primarily happening in, we've added new customers, as mentioned, a couple of wholesalers in the U.S. that focus on fashion, as well as new retailers and wholesalers in Middle East and Israel.

Also, I'd like to add that Costco doesn't do lab-grown diamonds as on base.

Yes, so as our chairman has mentioned, you know, we are interacting with the buyers, and as soon as the corporate decision is taken there, we are certain to be a part of that development. However, currently, they don't have a plan to introduce lab one time and two days.

And the quarterly sales rate of the origin, sir?

So, in the quarter, we did about 8.1, 8.2 crores in Q1 at 5.27.

Thank you, sir. The next question is from the line of Dixit Doshi from Whitestone PMS. Please proceed with your question.

Yeah, thanks for the opportunity again. So, my question is regarding this Middle East, Israel and Australia model. So, is it wholesaler and retailer both? And in case of retailer, is it similar to US model where we start on a consignment basis, then one year trial phase, and then it moves to the order book model?

Sure, thank you. So, it's a mix of wholesaler and retailer. On the retailer side, again, these are smaller retailers, not to the same scale as US. So, again, it's a mix. Largely, it is, you know, similar to India, where jewelry is just purchased outright. There are, however, particularly in Australia, a few large, one large retail group, which requires consignment testing and then, you know, has that evolution into being, styles being purchased directly and outright, post it being proven successful. So Australia, I would say, is more similar to the U.S., especially with the largest retail group there. Middle East and Israel is more similar to India in that sense with wholesale and retail. Purchasing product.

Thank you, sir. The next question is from the line of Bharat Gyanani from Money Control Research. Please proceed with your question.

Yes, sir. Thanks for the follow-up. Just wanted to check this. What is the mix between the wholesaler and retailer sales currently for the U.S. market? And for retailers, we serve them and in the online sales, online sales will be primarily to wholesalers or retailers. So that was just one certification we needed.

Sure, Mr. Bharat. So about, it varies quarter on quarter, but between 85% to 90% of our U.S. sales is, close to 85% is straight to retail. Balance is two wholesalers in the U.S. And for our .com, which is part of this, 100% of .com is two large retailers where we are impaneled and set up as end-to-end integrated operators for some of their websites.

Okay, so 85-90% of the sale is to the retailers directly, right? Yes, two of the U.S. sales. Okay, fine. Okay, thanks a lot, sir. Thank you and all the best. Thank you. Thank you, sir.

Thank you, sir. The next question is from the line of Saurabh Kumar from Scientific Investing. Please proceed with your question.

Yeah, I have one more pending question. I think one and a half years back, you had told that in a mature state, the stores can do maybe 10CR, 11CR kind of number. And I was looking at data of one of the recently listed players. They have taken a Lucknow market, a group of six stores, and that looks like in fourth or fifth year, it is reaching that number. My question is for us, if we take our oldest set of stores, which we started in the beginning, maybe four, five, six stores, what is the parent monthly run rate and how do you see them shaping up?

Sure, Mr. Saurabh.

So, great question. We have, so, I think most of our earlier stores that were started were set up in Mumbai. There are, of course, challenges that we see in Mumbai, both with rental and general demand in terms of porting of customers to the retail environment as opposed to some be purchasing wholesale. It's mixed in terms that it's been about a year plus, a little bit over a year, and the earlier stores, we have some stores that are doing very well, which have crossed that 25 to 35 lakh in that ballpark sales per store per month, and some that are not at that metric yet. Again, in the long term, I think as we develop this strategy, become a full-stack jeweler, add on things like, of course, old-gold exchange, advanced purchase plan teams, which until either this quarter or next quarter are not active, you know, as we invest in these initiatives, we will see further strengthening of mature stores coming in.

One of our best stores always crosses 40-45 lakhs per month. And the rest are all going to get there in time when new initiatives are introduced. Hopefully, in a quarter or two, we will see much better traction.

Okay. Got it, sir. Got it. Wish you all the best. That's all I have. Thank you. Thank you.

Thank you, sir. Ladies and gentlemen, in the interest of time, that was the last question for today. I would now like to hand the conference over to management for closing comments.

I want to thank all the participants for joining us today. If you have any further queries, questions, or any other additional information, please feel free to contact Deserio Consulting or Investor Relations team. I would like to thank everyone for joining in today. Good evening to you all. Thank you.

Thank you, sir. On behalf… On behalf of Monarch Net Worth Capital Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines. Thank you.