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Khazanchi Jewellers Limited — Q1 FY27 earnings call

Call held 25 Aug 2026

Company page: Khazanchi Jewellers share price, financials & guidance record

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

  • 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

  1. Revenue ₹586.36 Cr +45%YoY
  2. EBITDA ₹39.98 Cr +89%YoY
  3. EBITDA Margin 6.8%
  4. PAT ₹27.83 Cr +84%YoY
  5. PAT Margin 4.8%
  6. EPS ₹11.16 +82.3%YoY

What they filed

Q1 FY27: revenue up 45.0%, net profit up 86.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue375 394 622 404 549 +46%589 +49%508 −18%586 +45%
EBITDA15 16 19 21 32 +113%35 +119%37 +95%39 +86%
Net profit11 12 13 15 24 +118%25 +108%26 +100%28 +87%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex Capex disclosed Internal earnings for expansion, with potential debt or other means as required
    • Additional inventory for new retail store
    We are planning a retail development of 40% to reach there, we have our internal earnings, we will be utilizing it for expansion. And certain cases, as and when required by the required, the management will be deciding as and when it may be raised by debt or some other means. (Page 9); Obviously, we have an expansion plan, we had added up additional inventory, stock inventory for the new retail store. (Page 8)
  • Debt Gross ₹100 Cr
    So the company is having a total bank limit of INR100 crores till date. (Page 9); No, no, no. So that is the working capital we are using from the bank. (Page 9)
  • Liquidity Liquidity disclosed Company expects to have good cash flow this year, with correct fund plans to fulfill stock requirements for upcoming stores.
    Yes, definitely, this year, we will be having a good cash -- positive cash flow because we have what they say, correct fund plans with regards to how we are going to operate with for the -- fulfill the stock requirement of the upcoming stores. (Page 9)

Guidance & targets

Revenue

  • Total Revenue Revenue · by 2030 · High confidence ₹5,000 crores
    Your company is poised to achieve a revenue mark of INR5,000 crores by 2030. (Page 4); So what will drive us to that scale? And by when do you expect to achieve it? (Page 5)

    — Mr. Rajesh Mehta, Chairman and Joint Managing Director

  • Annual Revenue Growth Revenue · Annual · High confidence 25% to 30%
    We are targeting annual revenue growth of approximately 25% to 30%, supported by our strong B2B foundation, expanding B2C and digital ecosystem and value creation across every segment of the business. (Page 4)

    — Mr. Rajesh Mehta, Chairman and Joint Managing Director

Retail Expansion

  • New Stores Launch Retail Expansion · next 3 to 4 years · High confidence 8 to 10 stores
    B2C business will be the key growth driver going forward, and we have a very aggressive plan to launch 8 to 10 stores over the next 3 to 4 years across geographies. (Page 4)

    — Mr. Rajesh Mehta, Chairman and Joint Managing Director

Retail Contribution

  • B2C Revenue Contribution Retail Contribution · by FY 2030 · High confidence 40%
    Our retail expansion is aimed to accelerating our B2C growth and increasing the B2C contribution to approximately 40% of overall revenue by FY 2030. (Page 4); We are going to reach the 40% share by 2030, that's what. (Page 8)

    — Mr. Rajesh Mehta, Chairman and Joint Managing Director

Corporate Action

  • Main Board Migration Corporate Action · another 2 months · Medium confidence Completed
    Surely, we would be -- the migration process will be completed in another 2 months, we believe. (Page 5)

    — Mr. Rajesh Mehta, Chairman and Joint Managing Director

Retail Performance

  • Flagship Showroom Revenue Retail Performance · Peak · Medium confidence ₹500 crores
    Your current store, this flagship store will do somewhere around INR500 crores peak revenue. (Page 7); We have already defined that the showroom is going to fetch us in a revenue of around INR500 crores and somewhere around 80% to 85% of that we have been working, and we are achieving that. (Page 5)

    — Mr. Rajesh Mehta, Chairman and Joint Managing Director

Marketing Spend

  • Marketing and Advertising Budget Marketing Spend · Q1 · High confidence 5% to 7%
    Overall budget, we have, say, 5% to 7% of the total earnings for our marketing. (Page 12)

    — Mr. Rajesh Mehta, Chairman and Joint Managing Director

What to watch in Q2 FY27

Main Board Migration Completion

next quarter
Current Submission process underway, expected in 2 months
Target Migration 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

  • Intensifying Competition

    medium

    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

  • Gold Price Volatility

    low

    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

Q&A highlights

7 direct
Main Board Migration Timeline Direct
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

Drivers for INR5,000 Crore Revenue Target Direct
As you know that we were able to achieve INR2,000-plus crores this financial year. And we have been into the expansion part of both our legs B2B and B2C. We have been seeing a constant growth of 25% to 30% on both these segments. And on the expansion plan, we have already defined that we are coming up with a few more showrooms by FY 2030. So all these expansion plans and all these growth strategies will help us to achieve our top line of INR5,000 crores.

Clarifies the strategic pillars (B2B/B2C growth, store expansion) supporting the long-term revenue target.

Asked by Rajshree Mehra

Underlying Jewellery Volume Growth Direct
So the growth in the quantum was around 15%.

Provides insight into the volume component of revenue growth, distinguishing it from price realization.

Asked by Keval Mehta

Flagship Showroom Revenue and EBITDA Generation Direct
That's what we are in what they say, match with the target. We have already defined that the showroom is going to fetch us in a revenue of around INR500 crores and somewhere around 80% to 85% of that we have been working, and we are achieving that.

Confirms the flagship store is performing as per expectations, validating the B2C expansion strategy.

Asked by Keval Mehta

Retail Expansion Geography Direct
Sir, initially, we have plans of opening up stores in Tamil Nadu. And since we have defined a period of, say, 3 to 4 years period. And based on that, initially, we are planning to open up in Tamil Nadu alone. And later on, as per the management decision and as per the expansion plans, we can even have stores in some other states also. So that is our base plan.

Outlines the phased geographical approach for retail expansion, starting with the home state.

Asked by Rohit

ERP Implementation Experience Direct
We have been having a great experience with regards to the ERP implementation in our new showroom. Here, we are able to understand which product is moving fast, what is the average customers' demand. Based on that demand, we are modifying our product requirements, reordering levels and everything. We are making a concrete ERP system so that it can be replaced on a replica basis for the upcoming showrooms.

Highlights the operational benefits and scalability potential of the new ERP system for future store rollouts.

Asked by Rohit

Asset-Light Business Model Direct
We said no, we are going to operate with an asset-light model so that we will have and leased the property for that and use it for our development.

Clarifies the capital-efficient strategy for future store expansions, contrasting with the owned flagship showroom.

Asked by Miten Shah

Impact of Gold Price Surge on Demand Partial
And every time when there is a steep rise in the prices, yes, there is a certain slowdown of, say, for a fortnight or 2 weeks. Then that price get digested. And once again, the upcoming seasons are coming up, marriage seasons are there, festival seasons are there. So we are seeing a very good demand in the very upcoming near future. So this price rise will be easily digested.

Addresses a potential demand headwind, with management indicating temporary impact and quick digestion by the market.

Asked by Miten Shah

2 min read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

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