RBZ Jewellers Limited reported robust financial performance for FY26, with revenue from operations rising 20.06% to ₹6,364.80 crore from ₹5,301.15 crore in FY25. The company’s net profit after tax (PAT) surged approximately 41% to ₹547.81 crore, up from ₹388.59 crore in the prior year. This growth was supported by strong demand in both its retail and wholesale businesses, with retail revenue increasing to ₹4,084 crore and wholesale revenue growing to ₹2,213 crore.

The Ahmedabad-based jeweller also saw its earnings before interest, tax, depreciation, and amortization (EBITDA) expand significantly. EBITDA rose to ₹919 million, with margins improving to 14.44% from 12.11% in FY25. This margin expansion marks the strongest performance in the last four years, underscoring the effectiveness of the company’s integrated business model and disciplined execution.

Strategic Expansion and Capital Raising

RBZ Jewellers is accelerating its transition towards a consumer-led business model, focusing on scaling its retail footprint under the brand "Harit Zaveri Jewellers." The company plans to launch large-format stores in Surat and Rajkot during FY27, alongside evaluating opportunities in Gandhinagar and Eastern Ahmedabad. To support this expansion, the Board of Directors has proposed seeking shareholder approval to increase the borrowing limit to ₹750 crore. Currently, the company has secured working capital sanctions of ₹35 crore from IDFC First Bank and ₹50 crore from ICICI Bank, along with a ₹24 crore term loan from Kotak Bank.

What the Numbers Show

A key analytical observation from the financial data is the disproportionate growth in profitability compared to revenue. While revenue grew by roughly 20%, net profit increased by over 40%. This divergence suggests significant operating leverage, likely driven by the expansion in EBITDA margins from 12.11% to 14.44%. The ability to widen margins while scaling revenue indicates that fixed costs are being spread more efficiently over a larger sales base, enhancing overall capital efficiency.

Governance and AGM Details

The company will hold its 18th Annual General Meeting on September 10, 2026, via video conference. Key agenda items include the re-appointment of Chairman and Managing Director Rajendrakumar Kantilal Zaveri, who retires by rotation. Additionally, shareholders will vote on the re-appointment of Mr. Rajiv Nitin Mehta as an Independent Director for a second term of five years, commencing June 30, 2027. The Board has also proposed revisions to the remuneration structure for executive directors, including an increase in the commission ceiling from 1% to 1.15% of net profits.

The company maintained a clean audit report with no qualifications from statutory auditors Sorab S. Engineer & Co. RBZ Jewellers continues to emphasize trust and transparency, conducting 100% of transactions through formal banking channels without accepting cash payments.

RBZ Jewellers reported a robust 57.9% year-on-year increase in revenue from operations to ₹1,208 crore for the quarter ended June 30, 2026 (Q1FY27), driven by strong customer demand across its wholesale and job-work segments. Net profit after tax (PAT) rose 27.6% to ₹90.9 crore, while EBITDA expanded to ₹179 crore. The performance reflects sustained growth in gold sales volumes and the company’s expanding retail footprint, including planned flagship showrooms in Surat and Rajkot.

During the earnings conference call held on August 12, 2026, Joint Managing Director and CFO Harit Zaveri elaborated on the company’s strategic pivot towards a retail-led model. Management indicated that while the current B2B-to-B2C revenue mix stands at approximately 46-54, the target is to reach a 50-50 split within one to two years, eventually aiming for a 75-25 ratio favoring retail in the long term. This transformation is supported by aggressive brand-building initiatives and store expansions.

Financial Performance Highlights

Revenue from operations grew significantly to ₹1,208 crore in Q1FY27 from ₹766 crore in Q1FY26. Total expenses rose by 64.7% to ₹1,029 crore, primarily due to increased cost of materials consumed, which jumped to ₹56.6 crore from ₹21.7 crore year-on-year. Despite the expense surge, profit before tax grew by 26.7% to ₹122 crore. Tax expense stood at ₹31 crore, resulting in a PAT margin of 7.5%, down from 9.3% in the previous year quarter.

EBITDA expanded to ₹179 crore from ₹130 crore, but the EBITDA margin contracted to 14.8% from 17.2%. Management attributed this margin pressure to stagnant average gold rates resulting in negligible inventory gains, alongside higher employee expenses for new store ramp-ups and lease-related amortization of ₹76 lakh and lease liability interest of ₹115 lakh.

Operational and Segmental Insights

The company’s total gold sales volume reached 175.5 kg in Q1FY27, up from 162.3 kg in Q1FY26. Job-work services, which accounted for 52% of total gold volumes sold in FY26, contributed 95.3 kg in Q1FY27. Wholesale sales stood at 30.6 kg, while retail sales were 49.6 kg. RBZ Jewellers serves approximately 190 retail partners across 72 cities in 20 states, with marquee clients including Titan, Malabar Gold, and Senco Gold.

Management noted that corporate sales mix is shifting, with 18-karat gold expected to constitute 20% of B2B revenue by year-end, up from zero previously. The IIJS exhibition saw strong order backing, particularly from family jewellers, indicating resilient demand for lightweight jewellery with superior design aesthetics.

Strategic Expansion and Balance Sheet

RBZ Jewellers is deepening its presence in Gujarat with flagship showrooms planned for Surat (by Q2FY27) and Rajkot (by early Q3FY27), alongside mid-sized stores in Maninagar and Gandhinagar. The Surat store, with a capex of approximately ₹10 crore, is slated to open in late September, aiming for break-even within a year. Large format stores require inventory deployment of ₹125-150 crore, while smaller formats need around ₹50 crore.

The company operates a 23,966 sq. ft. manufacturing facility in Ahmedabad with an annual production capacity of over 2 tons. Current capacity utilization stands at 50%, with expectations to rise to 70-80% during peak festive seasons. As of March 2026, total assets stood at ₹4,860 crore, with inventories at ₹3,357 crore and total borrowings at ₹1,409 crore. Management disclosed that current inventory levels are approximately ₹400 crore, with a book-to-market value difference of around 18%.

What the Numbers Show

A significant strategic shift is evident in RBZ Jewellers’ capital allocation and risk management approach. The company plans to transition from traditional cash credit limits to Gold Metal Loans (GML) to hedge its entire inventory over three years. This move aims to reduce interest costs from roughly 9% on standard debt to 3-3.5% on GMLs, thereby improving scalability despite sacrificing potential upside from gold price appreciation. With a sanctioned debt limit of ₹300 crore yet to be fully utilized, management targets a debt-to-equity ratio of 0.8:1 by year-end, potentially gearing up to 1.5-2:1 as GML adoption increases. This suggests a deliberate trade-off between commodity volatility exposure and lower financing costs to fuel retail expansion.

The Board of Directors approved the unaudited standalone financial results on August 11, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors Sorab S. Engineer & Co., who issued an unmodified conclusion. Heli Akash Garala, Company Secretary & Compliance Officer, confirmed the submission of the investor presentation detailing the quarterly performance.