Manoj vaibhav gems 'N' Jewellers Limited announced that its board of directors and audit committee have approved a franchise agreement with M/s. Gontla Trading LLP during meetings held on March 23, 2026. The agreement will enable the operation of new jewellery stores in Visakhapatnam under the company's brand name.

Franchise Agreement Details

The board approved the appointment of M/s. Gontla Trading LLP, a Limited Liability Partnership firm, as the franchisee for operating proposed new jewellery stores at two strategic locations in Visakhapatnam:

• Ramnagar, Visakhapatnam
• Gajuwaka, Visakhapatnam

The board has authorized the execution of a comprehensive franchise agreement, along with any necessary addendum, between the company and the franchisee. The company will announce the proposed opening dates of these new stores to stock exchanges as and when they are scheduled to open, in compliance with regulatory requirements.

Transaction Structure and Financial Terms

The franchise agreement encompasses significant business transactions for FY 2026-27:

Both transactions will be conducted in the ordinary course of business on an arm's length basis, with pricing inclusive of franchise fees. The material terms reflect that both entities operate in the same line of business, ensuring operational synergy.

Related Party Transaction Compliance

The transaction qualifies as a related party transaction under Section 188 of the Companies Act, 2013 and Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This classification arises because the designated partners of the franchisee have family relationships with key company executives:

• Mr. Udaya Kumar Gontla and Mrs. Gontla Shireesha are relatives of Mr. Rakhal Gontla, Joint Managing Director
• They are also relatives of Mrs. Sai Keerthana Grandhi, Whole-time Director and CFO

The company has confirmed that the transaction will be undertaken on an arm's length basis and in the ordinary course of business. Importantly, the transaction does not fall under the category of material related party transactions.

Board Meeting Proceedings

The board meeting was conducted on March 23, 2026, commencing at 05:30 P.M. and concluding at 06:10 P.M. The decisions were made pursuant to Regulation 30 and Regulation 23 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Both the audit committee and board of directors provided their approval for the franchise agreement execution.

Manoj vaibhav gems 'N' Jewellers Limited delivered robust financial performance in Q3FY26, demonstrating strong growth momentum in the jewellery retail segment. The company's Board of Directors approved the quarterly results for the period ended December 31, 2025, alongside a significant strategic investment in warehouse infrastructure.

Strong Financial Performance in Q3FY26

The company reported impressive growth across key financial metrics for the third quarter ended December 31, 2025. Net profit increased substantially by 36.63% year-on-year, while revenue from operations showed strong expansion of 37.63% compared to the corresponding quarter in the previous year.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the company maintained its growth trajectory with consistent performance improvements. Revenue from operations reached ₹1,989.56 crores compared to ₹1,678.92 crores in the corresponding nine-month period of the previous year, marking an 18.50% increase.

Strategic Warehouse Asset Acquisition

The Board of Directors approved a significant strategic investment in warehouse infrastructure. The company will purchase a fully constructed and occupied warehouse facility spanning 1,50,000 square feet, which operates as a fully leased process sequencing warehouse with a Kia partner company as the tenant.

Exceptional Items and Regulatory Impact

The company recorded exceptional items of ₹1.44 crores in Q3FY26, attributed to the one-time impact of New Labour Codes effective from November 21, 2025. This represents immediate recognition of past service cost as per Ind AS 19 requirements for changes in employee benefit plans due to legislative amendments. The government is currently in the process of notifying related rules, with future impacts to be assessed upon notification.

Operational Highlights

The company operates exclusively in the jewellery retail business segment, with no separate reportable segments as per Ind AS 108. The financial results demonstrate strong operational efficiency with total expenses of ₹641.17 crores in Q3FY26 compared to ₹472.40 crores in Q3FY25. The company maintains a debt-free status with no subsidiaries, associates, or joint ventures as of December 31, 2025.