RBZ Jewellers Limited — Q3 FY26 earnings call

Call held 18 Feb 2026

Management summary

RBZ Jewellers delivered a strong Q3 FY26, driven by robust retail performance and festive demand, despite a decline in wholesale and job work segments. The company revised its FY26 guidance downwards due to strategic delays in new store launches but provided optimistic FY27 targets. Management emphasized a focus on lightweight and 18-carat jewelry and strategic inventory management to support future growth.

Highlights

  • Q3 FY26 revenue from operations at INR 226 crores, up 17% YoY, driven by strong B2C momentum and festive demand.

  • EBITDA for Q3 FY26 grew 36% YoY to INR 30 crores, with EBITDA margin expanding 184 bps YoY to 13.04%.

  • Profit after tax for Q3 FY26 stood at INR 17 crores, reflecting a 33% growth YoY, with PAT margins improving to 7.69%.

  • Retail revenue for Q3 FY26 registered a strong growth of 39% YoY, reaching INR 155 crores.

  • For 9M FY26, revenue grew 14% YoY to INR 447 crores, and net profit increased 43% YoY to INR 43 crores.

Concerns

  • Wholesale revenue declined 12% YoY to INR 70 crores in Q3 FY26, and job work revenue fell 46% YoY to INR 2 crores, attributed to high gold prices and corporate hedging.

  • New store openings in Surat, Rajkot, and Eastern Ahmedabad are strategically delayed to Q2 FY27, impacting FY26 revenue guidance.

  • Management noted psychological pressure on B2B margins due to high gold prices, though no rate negotiations or cost cutting from their side.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹226 Cr
    YoY +17%
  • EBITDA
    ₹30 Cr
    YoY +36%
  • EBITDA Margin
    13%
  • PAT
    ₹17 Cr
    YoY +33%
  • PAT Margin
    7.7%

9M FY26

  • Revenue
    ₹447 Cr
    YoY +14%
  • EBITDA
    ₹71 Cr
    YoY +42%
  • EBITDA Margin
    15.8%
  • Net Profit
    ₹43 Cr
    YoY +43%
  • PAT Margin
    9.6%

What they filed

Q1 FY27: revenue up 59.8%, net profit up 27.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue117 194 137 76 145 +24%226 +17%189 +38%121 +60%
EBITDA14 22 15 13 28 +102%30 +36%21 +45%18 +38%
Net profit8 13 9 7 19 +130%17 +33%12 +36%9 +28%
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.

Segment breakdown

Share of Revenue
₹674 Cr Total
  • Retail (9M FY26) ₹287 Cr 42.6%
  • Retail (Q3 FY26) ₹155 Cr 23.0%
  • Wholesale (9M FY26) ₹154 Cr 22.8%
  • Wholesale (Q3 FY26) ₹70 Cr 10.4%
  • Job Work (9M FY26) ₹6 Cr 0.9%
  • Job Work (Q3 FY26) ₹2 Cr 0.3%

Capital allocation

medium confidence
  • Liquidity Undrawn ₹140 Cr Bank sanctions of INR 255 crores are in hand, with INR 110-115 crores currently utilized, leaving INR 140-145 crores undrawn.
    So right now, the utilization of bank is around INR110 crores, INR115 crores. INR255 crores sanction is in our hand.

Guidance & targets

Revenue

  • Annual Revenue Revenue · FY26 · High confidence INR 630-650 crores

    Previously INR 700 crores → INR 630-650 crores

    So after suspecting the new store sales, I think we should be able to achieve around INR650 crores or INR630 crores to INR650 crores of revenue, with the bottom line of at least, let's say, INR50 crores, INR55 crores.

    — Harit Zaveri

  • Annual Revenue Revenue · FY27 · High confidence INR 800-900 crores
    Should be probably doing around INR800 crores, INR900 crores with a PAT of around INR55 crores, INR60 crores.

    — Harit Zaveri

Profitability

  • PAT Profitability · FY26 · High confidence INR 50-55 crores
    So after suspecting the new store sales, I think we should be able to achieve around INR650 crores or INR630 crores to INR650 crores of revenue, with the bottom line of at least, let's say, INR50 crores, INR55 crores.

    — Harit Zaveri

  • PAT Profitability · FY27 · High confidence INR 55-60 crores
    Should be probably doing around INR800 crores, INR900 crores with a PAT of around INR55 crores, INR60 crores.

    — Harit Zaveri

Marketing Spend

  • Marketing Expense Marketing Spend · FY27 · High confidence INR 25 crores
    Marketing spend around INR25 crores is expected.

    — Harit Zaveri

  • Marketing Expense as % of Sales Marketing Spend · Current Year · High confidence 1%
    Current year marketing spend is not that much because of retail store being a mature store, we generally expect a 1% of the revenue to be mostly boiling down to advertising budget.

    — Harit Zaveri

New Stores

  • Surat Flagship Store Opening New Stores · Q2 FY27 · High confidence Q2 FY27
    So Deepesh Bhai, the two flagship stores of 10,000 square feet in Surat and 12,000 square feet in Rajkot, we are planning to open in the quarter 2 of this year.

    — Harit Zaveri

  • Rajkot Flagship Store Opening New Stores · Q2 FY27 · High confidence Q2 FY27

    — Harit Zaveri

  • Eastern Ahmedabad Store Opening New Stores · Q2 FY27 · High confidence Q2 FY27
    Further, we also have identified strategic location in Eastern Ahmedabad for mid-sized stores of approximately 5,000 square feet, reinforcing our regional footprint and supporting incremental growth.

    — Harit Zaveri

Inventory

  • Additional Inventory for New Stores Inventory · Next Year · High confidence INR 250 crores
    It will be more than that. It will be more or less INR250 crores of additional inventory that will be pushed in via internal accruals and debt.

    — Harit Zaveri

  • Inventory Turnover (Mature Retail Store) Inventory · Ongoing · High confidence 2x
    A good mature store, you can consider 2x, 2.5x. 2x will be better.

    — Harit Zaveri

What to watch in Q4 FY26

New Store Openings (Surat & Rajkot)

Q2 FY27
Current Planned for Q2 FY27
Target Operational in Q2 FY27

Why it matters

These are flagship stores crucial for retail expansion and achieving FY27 revenue targets.

So Deepesh Bhai, the two flagship stores of 10,000 square feet in Surat and 12,000 square feet in Rajkot, we are planning to open in the quarter 2 of this year.

Risks & concerns

  • Gold Price Volatility and its Impact on Volumes

    medium

    Sharp increase in gold prices led to lower volumes in wholesale and job work segments, though value growth remained healthy. Management noted that high prices make volume comparisons difficult.

    Management acknowledged

  • New Store Launch Delays Impacting FY26 Guidance

    medium

    Strategic delay in opening new flagship stores until Q2 FY27 led to a revision of FY26 revenue guidance downwards, though management views this as beneficial for long-term ROI.

    Management acknowledged

  • Margin Pressure in B2B Segment

    low

    Analyst raised concerns about high gold prices leading to margin pressure in the B2B segment. Management acknowledged 'psychological pressure' but stated no actual rate negotiations or cost cutting from their side.

    Analyst acknowledged

Q&A highlights

8 direct
Discrepancy in Revenue Growth vs. Peers Direct
So Sahil, if you understand the model in which we are operating, that is wholesale, job work and retail. You will get the right idea about how other stores are doing and how we are doing. So if you understand that quarter 2, there was a phenomenal rise in the volumes in job work. Now again, the corporates who buys from us, this is critical to understand.

Management explained that gold price volatility and the company's diversified model (wholesale, job work, retail) led to different growth dynamics compared to peers, with wholesale volumes shifting to Q2 and high gold prices impacting Q3 volumes.

Asked by Sahil Patani

Inventory Gain Accounting Direct
So in retail, we generally follow the fixed price method in which whatever goods have come in, let's say, if you have bought a good today, it will get purchased at a fixed rate. And whenever we sell it, that rate will be locked in. And on wholesale, we follow the weighted average method on the working capital.

Clarified the company's inventory accounting methods (fixed price for retail, weighted average for wholesale) and explained why inventory gains were not as pronounced as some peers, partly due to holding older stock for future new stores.

Asked by Deepesh

Q4 FY26 Outlook and FY26 Guidance Revision Direct
So after suspecting the new store sales, I think we should be able to achieve around INR650 crores or INR630 crores to INR650 crores of revenue, with the bottom line of at least, let's say, INR50 crores, INR55 crores.

Management revised down the FY26 revenue guidance from INR 700 crores to INR 630-650 crores and provided a PAT guidance of INR 50-55 crores, citing new store launch delays as a primary reason.

Asked by Sahil Patani

Volume Achievement vs. Previous Year Direct
So certainly, volume achievement on the parallel level is something that we don't expect because, again, you can tell that this volumes next year can happen, yes, because of the four showroom openings and all, it can happen. But it is too early for me to say anything like that.

Management clarified that due to sharp increases in gold prices, comparing volumes directly year-on-year is misleading, and that value growth (net revenue) is a more appropriate metric, which shows healthy growth.

Asked by Libin

Lightweight Jewelry and Lab-Grown Diamonds (LGD) Direct
See, in my limited understanding, lab-grown is a -- there is a marketplace for lab-grown. Retailers are experimenting and wanting to have a few stores. Some of the leading retailers are doing -- experimenting in their own ways. What do you see the future? I think more of the research reports should be able to tell that. I'm just an industry person and honestly, not an industry expert.

Management expressed caution regarding Lab-Grown Diamonds, viewing them as synthetic with potential for price crashes, and stated they are not entering this segment. Instead, they are focusing on lightweight jewelry with better look-to-weight ratios.

Asked by Khushi Jain

Pressure on B2B Margins due to High Gold Prices Direct
So see, when you say pressure, I mean, there is a psychological pressure. But when you say about the rates being corrected, the answer is no.

Management acknowledged 'psychological pressure' on B2B margins due to high gold prices but stated that there have been no rate negotiations or cost-cutting from their side, indicating resilience in their pricing strategy.

Asked by Deepesh

Delay in New Store Openings Direct
So Kaushal bhai, the season that in jewelry industry starts from the month of July and August, see the stores are large and one of the largest in the respective cities. So such kind of stores would need a very high bang well opening. To make that creating the buzz of marketing and etcetera, to happen, we would need the right kind of season.

Management explained that the delay in opening new flagship stores until Q2 FY27 is a strategic decision to align with the peak festive season (July-August) for maximum marketing impact and better return on investment, rather than opening in a slow period.

Asked by Kaushal Kumar

Funding for New Store Inventory Direct
It will be more than that. It will be more or less INR250 crores of additional inventory that will be pushed in via internal accruals and debt.

Management detailed the funding strategy for the INR 250 crores of additional inventory needed for new stores, combining internal accruals (INR 55 crores this year, INR 100 crores next year) with existing bank sanctions (INR 255 crores).

Asked by Lala

3 min read 6 chapters

Detailed narrative

Strong Q3 and 9M FY26 Financial Performance

RBZ Jewellers reported a robust Q3 FY26 with revenue from operations reaching INR 226 crores, marking a 17% year-on-year growth. EBITDA for the quarter increased by 36% YoY to INR 30 crores, with the EBITDA margin expanding 184 basis points to 13.04%. Profit after tax stood at INR 17 crores, growing 33% YoY, and PAT margins improved to 7.69%. For the nine months ended December 31, 2025, revenue grew 14% YoY to INR 447 crores, EBITDA increased 42% YoY to INR 71 crores, and net profit rose 43% YoY to INR 43 crores.

Segmental Performance and Gold Price Impact

The retail segment demonstrated strong performance in Q3 FY26, with revenue growing 39% YoY to INR 155 crores, driven by festive and wedding season demand. In contrast, wholesale revenue declined 12% YoY to INR 70 crores, and job work revenue decreased 46% YoY to INR 2 crores. Management attributed the wholesale decline to high gold prices, which led to lower volumes and a shift in corporate buying patterns towards job work and hedging in previous quarters. For 9M FY26, retail revenue grew 24% to INR 287 crores, while wholesale marginally declined to INR 154 crores.

Revised FY26 and Optimistic FY27 Guidance

The company revised its FY26 revenue guidance to INR 630-650 crores and PAT to INR 50-55 crores, a slight adjustment from earlier targets due to strategic delays in new store openings. Looking ahead to FY27, RBZ Jewellers projects revenue in the range of INR 800-900 crores and PAT between INR 55-60 crores. Marketing spend for FY27 is estimated at INR 25 crores, with current year marketing spend maintained at approximately 1% of revenue.

Strategic Delay in New Store Launches

RBZ Jewellers plans to open two new flagship stores in Surat (10,000 sq ft) and Rajkot (12,000 sq ft), along with two mid-sized stores in Eastern Ahmedabad (5,000 sq ft), all scheduled for Q2 FY27. These launches were deliberately postponed from Q4 FY26/Q1 FY27. Management explained this strategic delay aims to align store openings with the peak festive season (July-August) to maximize marketing impact and ensure a higher return on investment, rather than launching in a slower market period.

Focus on Lightweight and 18-Carat Jewelry

The company is actively developing and promoting lightweight jewelry with improved look-to-weight ratios for both B2B and B2C segments. They are also pilot testing 18-carat jewelry in occasion wear, which has received positive responses. This strategic focus aims to cater to budget-conscious consumers and expand product offerings, positioning the company for future demand in these segments. Management noted they are not entering the lab-grown diamond segment due to concerns about price volatility and synthetic nature.

Inventory Management and Funding for Expansion

RBZ Jewellers maintains a healthy inventory cushion, with current gold prices providing a 20-22% buffer. The company plans to invest approximately INR 250 crores in additional inventory to stock the new stores. This funding will be sourced through a combination of internal accruals (INR 55 crores this year, INR 100 crores next year) and existing bank sanctions, with INR 110-115 crores currently utilized out of INR 255 crores sanctioned.

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