RBZ Jewellers Lt

RBZ Jewellers reported robust financial results for Q4 FY26, with revenue from operations growing 38% YoY to INR 190 crores. EBITDA for the quarter increased 46% YoY to INR 21 crores, and PAT rose 36% YoY to INR 12 crores, with the EBITDA margin expanding by 63 bps to 11.19%. For the full fiscal year 2026, revenue reached INR 637 crores, reflecting a 20% YoY growth. EBITDA for FY26 increased significantly by 43% to INR 92 crores, with the EBITDA margin improving by 233 bps to 14.44%, and PAT grew 41% YoY to INR 55 crores.

In Q4 FY26, retail revenue stood at INR 121 crores, registering a healthy growth of 31% year-on-year. Wholesale revenues showed strong growth of 57% YoY, reaching INR 67 crores, while job work revenue was approximately INR 1 crore. For the full year FY26, the total value of merchandise sold was INR 1,251 crores, with the retail segment contributing INR 408 crores and the B2B segment (wholesale and job work) contributing INR 843 crores. Management noted a shift in Q4, with wholesale sales increasing to 56%, as some job work demand tilted towards wholesale.

The company is embarking on a significant retail expansion, planning to open 4 new stores in this calendar year, comprising 2 large format stores and 2 mid-sized stores. Large format stores are targeted for Surat and Rajkot, expected to commence operations by Q2 FY27. Additionally, mid-sized stores are being explored in Eastern Ahmedabad and Gandhinagar. This concentrated focus on Gujarat is driven by the identified 'white space' in the market, where few pan-India players have a strong presence and there is no dominant chain brand.

RBZ Jewellers currently holds INR 336 crores in inventory. For each new large format store, an inventory of INR 125-150 crores is anticipated. The company manages gold price volatility by maintaining its weighted inventory 15-20% lower than the current market price, allowing for hedging. Despite the significant increase in gold prices, management estimates an inventory gain of INR 10-12 crores for FY26. Current manufacturing capacity utilization is approximately 50-55%, and no immediate capex is planned for manufacturing facilities.

Management is closely observing the market reaction to recent increases in customs duty and advanced authorization on gold imports, acknowledging that it's too early to gauge the full impact, but such restrictions are not advantageous. Regarding the Prime Minister's call to avoid gold purchases for a year, the company believes that India's traditional and wedding-linked demand for occasion wear will remain resilient, especially as the announcement came during a low season. Concerns about black market gold affecting corporate jewellers are also being monitored.

RBZ Jewellers is actively exploring the daily wear segment, currently conducting pilot testing for B2B customers. The company plans to launch new varieties in this segment at IIJS. Currently, daily wear accounts for approximately 35% of retail consumption, with occasion wear making up 65%. Management expects to have a clearer understanding of the market reception and learnings from the pilot by August, which will inform their future strategy for this segment.

The company aims to maintain a healthy debt-equity ratio, ideally at 1:1, with flexibility to leverage up to 1.4:1 or 1.5:1. For the planned 4 new showrooms, the peak debt-equity ratio is anticipated to be around 1:1.2 for FY27. The funding for the inventory required for these new stores will be a combination of additional debt, transfer of existing inventory, and profit generation. Management emphasized their comfortable financial position to support the planned expansion.