RBZ Jewellers Limited

RBZ Jewellers experienced an 8% YoY decline in revenue from operations, reaching an estimated ₹75.58 crores, and an 8% YoY drop in EBITDA to ₹13 crores in Q1 FY26. This was primarily attributed to the pre-ponement of demand to Q4 FY25 and a temporary slowdown in occasion wear purchases due to high gold prices. Despite the revenue decline, EBITDA margins marginally improved by 9 basis points to 17.2%, with PAT standing at ₹7 crores and PAT margins at 9.39%. Retail revenue was ₹45 crores (slightly higher YoY), wholesale revenue declined 20% to ₹29 crores, and job work revenue grew 8%.

The company is pursuing a focused retail expansion strategy within Gujarat, planning to open two new large-format stores in Surat (Q4 FY26) and Rajkot (Q1 FY27), with two more locations under finalization. This strategy is based on strong demographic alignment and proven success in Ahmedabad, where retail revenue is targeted to reach ₹350-400 crores in FY26 from ₹323 crores currently. Management expects these new stores to significantly contribute to achieving the FY27 revenue target of ₹1,000 crores, with retail contributing 70-75% of total revenue.

RBZ Jewellers currently operates a 2,000 kg annual manufacturing facility, with FY25 utilization at approximately 66%. Management stated there is no immediate need for capex for the next 2-3 years, as existing capacity is sufficient, and additional volume can be sourced via job work arrangements with a marginal cost increase of 0.5-1.5%. The company emphasizes its manufacturing capabilities as a key differentiator, enabling better margins compared to peers and supporting its diversified business model.

While antique gold bridal jewellery remains the core specialty and primary revenue driver (65% of occasion wear demand), RBZ is actively working on diversifying its product portfolio. The company plans to introduce a 'good amount' of in-house produced daily wear jewellery by the end of FY26, aiming for unique differentiation. Simultaneously, the B2B segment (wholesale and job work) remains crucial, with management reporting strong advanced order bookings from the IIJS exhibition and maintaining strategic partnerships with major players like Titan.

Despite the Q1 FY26 softness, RBZ Jewellers reiterated its full-year guidance for FY26, targeting ₹700 crores in revenue and ₹45 crores in PAT. For FY27, the company projects ₹1,000 crores in revenue and ₹55 crores in PAT, driven by the upcoming retail store expansions. Management expressed high confidence in achieving these targets, citing a strong Q2 outlook, healthy order books, and the strategic benefits of its integrated manufacturing and retail model.