RBZ Jewellers outlines retail push, GML strategy in Q1FY27 call
RBZ Jewellers delivered strong Q1FY27 results with revenue up 58% to ₹1,208 crore and PAT rising 27.6% to ₹90.9 crore. Management outlined a clear roadmap for retail expansion in Gujarat, targeting a 75-25 B2C-B2B revenue mix long-term. A key strategic shift involves adopting Gold Metal Loans to hedge inventory and reduce interest costs, supporting a planned increase in leverage to fund store openings.
*this image is generated using AI for illustrative purposes only.
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.
| Particulars: | Q1FY27 (₹ Cr) | Q1FY26 (₹ Cr) | YoY Change |
|---|---|---|---|
| Revenue from Operations | 1,208 | 766 | +57.9% |
| Total Expenses | 1,029 | 626 | +64.7% |
| EBITDA | 179 | 130 | +37.7% |
| Profit Before Tax | 122 | 96 | +26.7% |
| Net Profit (PAT) | 90.9 | 71.2 | +27.6% |
| EPS (Basic & Diluted) | ₹2.27 | ₹1.78 | +27.5% |
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.
| Sales Volume (Kg): | Retail | Wholesale | Jobwork | Total |
|---|---|---|---|---|
| Q1FY27 | 49.6 | 30.6 | 95.3 | 175.5 |
| Q4FY26 | 77.0 | 45.1 | 99.0 | 221.1 |
| Q1FY26 | 45.5 | 29.1 | 87.7 | 162.3 |
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.
Historical Stock Returns for RBZ Jewellers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.51% | -9.12% | +14.40% | +44.15% | +25.60% | 0.0% |
How will the transition to Gold Metal Loans (GMLs) impact RBZ Jewellers' net interest margins and overall profitability if gold prices experience significant volatility in the coming quarters?
What specific operational challenges might arise from accelerating the retail revenue mix from 54% to 75% within the long-term horizon, particularly regarding supply chain management and brand consistency?
Given the current 50% capacity utilization, how prepared is the Ahmedabad manufacturing facility to handle the projected 70-80% peak demand during festive seasons without compromising quality or delivery timelines?
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