Khazanchi Jewellers Limited delivered robust top-line and bottom-line growth in the first quarter of FY27, signaling strong operational leverage. The company posted a 45% year-on-year revenue increase to ₹586.36 crore, while net profit after tax (PAT) surged 84% to ₹27.83 crore.

The results reflect improved business mix and scale benefits following the launch of its flagship showroom. Earnings per share (EPS) rose 82.35% to ₹11.16. Management highlighted that EBITDA grew faster than revenue, indicating effective cost management and higher-margin product realization.

Financial Performance

Revenue for Q1FY27 stood at ₹586.36 crore, compared to ₹403.84 crore in the same period last year. Operating profitability expanded significantly, with EBITDA rising 89% YoY to ₹39.98 crore. This growth outpaced revenue expansion, driving an improvement in EBITDA margins by 158 basis points to 6.82%.

Profit after tax reached ₹27.83 crore, up from ₹15.15 crore in Q1FY26. PAT margins improved by 99 basis points to 4.75%. The disproportionate growth in profits relative to sales underscores the impact of operational efficiencies and a favorable product mix.

What the Numbers Show

The divergence between volume growth and revenue growth reveals significant price realization or mix shifts. Management disclosed that jewellery quantum (volume) grew by approximately 15%, while revenue expanded by 45%. This gap suggests that roughly two-thirds of the revenue growth was driven by higher average selling prices or a shift toward higher-value categories, rather than pure volume expansion.

Strategic Outlook and Expansion

Chairman Rajesh Mehta outlined an aggressive growth trajectory, targeting annual revenue growth of 25% to 30% and a total revenue mark of ₹5,000 crore by 2030. The company plans to increase the contribution of its B2C segment to approximately 40% of overall revenue by FY2030, up from current levels.

Key strategic initiatives include:

• Launching 8 to 10 new stores over the next three to four years, primarily in Tamil Nadu initially.
• Migrating from the BSE SME platform to the main boards of both BSE and NSE, with documentation submission underway.
• Expanding digital presence through an upcoming e-commerce platform for lightweight and minimal jewellery.

Operational Updates

The newly launched flagship showroom is performing in line with targets, generating a monthly revenue run rate of approximately ₹30 crore to ₹35 crore. Management aims for the showroom to eventually fetch around ₹500 crore in peak revenue.

On working capital, the average cycle for wholesale operations remains at 40 to 45 days, while retail inventory turnover stands at 73 days, up from 63 days in Q4FY26 due to increased stock for the new store. The company currently utilizes a bank limit of ₹100 crore for working capital requirements, with no long-term debt disclosed. Inventory levels are approximately ₹460 crore as of June 30.

Management noted that gold price fluctuations cause temporary slowdowns of about two weeks, but demand normalizes quickly ahead of festive and wedding seasons. The company continues to diversify its client base, with no single B2B client contributing more than 5% to 6% of total revenue.

Khazanchi Jewellers Limited ( Khazanchi Jewellers ) has made the audio recording of its first-quarter fiscal year 2027 (Q1FY27) earnings call available to investors. The conference call was held on Tuesday, August 25, 2026.

The company disclosed the availability of the recording pursuant to Regulation 30 and Regulation 46(2)(oa) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was submitted to BSE Limited on August 25, 2026.

Call Details

The earnings call provided an overview of the financial performance for the quarter ended June 30, 2026. Key management members who attended the meeting included:

• Rajesh Mehta, Chairman & Joint Managing Director
• Vikas Mehta, Chief Financial Officer

The event was hosted by Kirin Advisors. The audio recording is accessible via the company’s official website.

Regulatory Disclosure

Sakshi Jain, Compliance Officer & Company Secretary of Khazanchi Jewellers Limited, certified the disclosure. The company confirmed that no unpublished price-sensitive information was shared or discussed during the call.

The announcement referenced the earlier intimation issued on August 19, 2026, regarding the schedule for the investor conference call. Investors were previously advised that certain statements made during the call may constitute forward-looking statements subject to risks and uncertainties.

Contact Information

For further details regarding the earnings call or the recording, investors may contact Kirin Advisors at +91 22 4100 2455 or via email at research@kirinadvisors.com .