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    Khazanchi Jewell Q1 FY27 earnings call

    543953
    Consumer Durables·25 Aug 2026
    Management Summary

    Khazanchi Jewellers reported a strong Q1 FY27, with significant year-on-year growth across all key financial metrics, including revenue, EBITDA, PAT, and EPS. The company highlighted progress in its B2B and B2C segments, driven by the launch of its flagship showroom and ERP system implementation. Management reiterated its ambitious FY2030 targets, including achieving INR5,000 crores in revenue with a 40% contribution from B2C, and provided updates on its main board migration process.

    Highlights

    5

    • Strong revenue growth of 45% year-on-year to INR586.36 crores, driven by healthy momentum in both B2B and B2C operations.

    • EBITDA increased by 89% year-on-year to INR39.98 crores, with margins improving by 158 basis points to 6.82%, reflecting improved business mix and operating leverage.

    • Profit after tax (PAT) grew by 84% year-on-year to INR27.83 crores, and PAT margins improved by 99 basis points to 4.75%.

    • EPS increased significantly by 82.35% year-on-year to INR11.16.

    • Successful completion of 3 years since BSE SME listing and progression towards main board migration, expected in the next two months.

    Key financials

    Single quarter

    06 metrics
    1. 01Revenue₹586.36 Cr+45%YoY
    2. 02EBITDA₹39.98 Cr+89%YoY
    3. 03EBITDA Margin6.8%
    4. 04PAT₹27.83 Cr+84%YoY
    5. 05PAT Margin4.8%

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Internal earnings for expansion, with potential debt or other means as required

    Debt

    Gross ₹100 crores

    Liquidity

    Liquidity disclosed

    Company expects to have good cash flow this year, with correct fund plans to fulfill stock requirements for upcoming stores.

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    Total Revenue
    ₹5,000 crores
    		High
    Revenue
    Annual Revenue Growth
    25% to 30%
    		High
    Retail Expansion
    New Stores Launch
    8 to 10 stores
    		High
    Retail Contribution
    B2C Revenue Contribution
    40%
    		High
    Corporate Action
    Main Board Migration
    Completed
    		Medium
    Retail Performance
    Flagship Showroom Revenue
    ₹500 crores
    		Medium
    Marketing Spend
    Marketing and Advertising Budget
    5% to 7%
    		High

    What to watch in Q2 FY27

    4

    Main Board Migration Completion

    next quarter
    CurrentSubmission process underway, expected in 2 months
    TargetMigration completed and listing on BSE/NSE

    Why it matters

    Successful migration could improve liquidity, valuation, and access to capital markets.

    Surely, we would be -- the migration process will be completed in another 2 months, we believe. (Page 5)

    Risks & concerns

    2
    RiskSeverity

    Gold Price Volatility

    Recent surge in gold prices causes a temporary slowdown for 1-2 weeks, but prices are quickly digested, and demand recovers due to upcoming seasons. — Analyst downplayed

    low

    Intensifying Competition

    Competition is increasing from large organized chains and regional jewellers, but Khazanchi leverages its legacy, design focus, customer-centric approach, lightweight jewellery, and direct manufacturing for competitive pricing. — Analyst acknowledged

    medium

    Q&A highlights

    8

    “Yes, we are into the submission process of the application and all the documentation part, and we are going to submit the documentation very shortly. Surely, we would be -- the migration process will be completed in another 2 months, we believe.”

    Provides a clear timeline for a significant corporate action that could enhance liquidity and investor interest.

    asked by Rajshree Mehra

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Financial Performance Highlights

    Khazanchi Jewellers reported a robust Q1 FY27, with revenue increasing by 45% year-on-year to INR586.36 crores. EBITDA saw an 89% year-on-year growth to INR39.98 crores, leading to a 158 basis points improvement in margins to 6.82%. Profit after tax (PAT) grew by 84% to INR27.83 crores, with PAT margins expanding by 99 basis points to 4.75%. Earnings Per Share (EPS) also saw a significant rise of 82.35% to INR11.16, reflecting strong operational leverage and an improving business mix.

    02

    Strategic Growth Vision and FY2030 Targets

    The company is targeting a revenue mark of INR5,000 crores by 2030, supported by an annual revenue growth rate of 25% to 30%. This growth will be fueled by a strong B2B foundation, expanding B2C presence, and a growing digital ecosystem. Management aims for the B2C segment to contribute approximately 40% of overall revenue by FY 2030, up from current levels, indicating a strategic pivot towards consumer-facing growth.

    03

    B2B and B2C Business Outlook

    The B2B business continues to provide scale and stability, with a focus on strengthening geographical reach and deepening client engagement. For the B2C segment, the company plans an aggressive expansion, launching 8 to 10 new stores over the next 3 to 4 years, initially in Tamil Nadu. These stores will include a mix of flagship, premium boutique, and minimal jewellery formats, aiming to accelerate B2C growth and increase its revenue contribution.

    04

    Main Board Migration and Capital Market Journey

    Khazanchi Jewellers is progressing with its migration from the BSE SME platform to the main board of both BSE and NSE. Shareholders approved this resolution at the recent AGM, and management expects the migration process to be completed within the next two months. This move follows significant expansion in scale and profitability since its August 2023 BSE SME listing, positioning the company for broader investor appeal and access to capital.

    05

    Operational Efficiencies and Digital Initiatives

    The company has successfully implemented dedicated ERP systems, particularly in its new flagship showroom, which helps in understanding fast-moving products, customer demand, and optimizing reordering levels. This system is designed to be replicated across upcoming showrooms. Khazanchi is also developing an e-commerce platform to sell lightweight minimal jewellery, rose gold, and silver jewellery, which is expected to launch shortly, further enhancing its digital presence.

    06

    Capital Structure and Working Capital Management

    The company currently operates with a total bank limit of INR100 crores, primarily utilized for working capital. There is no long-term debt. Management indicated that internal earnings would primarily fund the planned retail development, with potential for debt if required. Working capital cycles are approximately 40-45 days for wholesale and 100-120 days for retail. The inventory turnover ratio increased slightly to 73 days from 63 days in Q4 FY26 due to new retail store inventory build-up, but the company expects positive cash flow this year.

    This is an AI-generated summary of a publicly available earnings call transcript.