RAMBHAJO Q4 FY26 earnings call

Advit Jewels Limited achieved a landmark FY26, with total income growing by 33.68% to ₹167.03 crores and net profit increasing by 35.56% to ₹34.39 crores. The company maintained a healthy EBITDA margin of 29.48% for the full year. However, Q4 FY26 saw a comparatively softer performance, with total income at ₹43.23 crores and net profit at ₹8.74 crores, partly attributed to external factors like war escalation impacting the luxury segment.

For FY27, the company's strategic priorities include expanding its customer network, introducing innovative jewellery collections, enhancing manufacturing capabilities, and strengthening its international presence. Management aims to achieve these goals through a disciplined approach, building on the success of FY26. The active customer base significantly grew from 96 to 274, demonstrating strong market acceptance.

Advit Jewels specializes in premium handcrafted Kundan Polki, diamond-studded, and antique bridal jewellery, emphasizing design-centric pieces. The company clarified that a reduction in product count from 21 to 10 was due to grouping related items (e.g., bridal sets) for better organization. They are expanding their offerings to include men's jewellery (e.g., buckles with 70-80% gold content) and Gen Z-focused lighter-weight pieces (with ~30% gold content), while maintaining fixed margins across product types.

The company plans to open 30 new stores over the next three years through a franchise partnership with Francorp. For FY27, at least three new stores are planned, with the first retail store in Jaipur expected to commence operations by November/December 2026. This cautious, phased expansion aims to gain experience from initial store rollouts before accelerating further, focusing on strategic locations and partner capabilities.

Advit Jewels is committed to its artisans, making them regular employees to ensure consistent income and attract younger generations to the craft. The company's four-generation legacy provides deep knowledge in Jadau making, enabling them to manage complex manufacturing processes and ensure high-quality, design-centric output. This integrated business model and skilled artisan base are key competitive advantages.

While exports contributed less than 1% to FY26 revenue, primarily from an opportunistic Instagram sale, the company is actively exploring international markets. They see potential in the UK, following new free trade agreements, and the Middle East, with plans for shows and partnerships. Management emphasized their product quality and readiness for international certifications, positioning them as a 'reliable jeweler' globally.

Advit Jewels differentiates itself as a 100% Polki jewellery specialist, unlike larger competitors who have a smaller percentage of Polki in their offerings. Management estimates the bridal Polki market at ₹20,000 crores annually, indicating significant growth potential for their niche. The company's shift towards a direct-to-consumer (B2C) model is driven by better customer appreciation and higher margins compared to their traditional B2B approach.