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.