UH Zaveri Limited, a company listed on the Bombay Stock Exchange (BSE: 541338), has released its unaudited financial results for the second quarter and first half of the fiscal year 2026, ending September 30, 2025. The results show a mixed performance with revenue growth but a decline in profitability compared to the same period last year.

Financial Highlights

Key Observations

Revenue Growth

UH Zaveri Limited reported a significant increase in revenue from operations, with Q2 FY2026 revenue up by 60.6% year-over-year to Rs. 1,078.27 lakhs. For the first half of FY2026, revenue grew by 34% to Rs. 1,638.13 lakhs compared to the same period last year.

Profitability Decline

Despite the revenue growth, the company experienced a decline in profitability. Net profit for Q2 FY2026 decreased by 53.3% to Rs. 2.01 lakhs, compared to Rs. 4.30 lakhs in Q2 FY2025. For H1 FY2026, net profit fell by 80.8% to Rs. 3.58 lakhs from Rs. 18.62 lakhs in H1 FY2025.

Expense Management

Total expenses increased proportionally with revenue growth. In Q2 FY2026, expenses rose to Rs. 1,075.76 lakhs from Rs. 663.26 lakhs in Q2 FY2025, an increase of 62.2%.

Balance Sheet Position

As of September 30, 2025, the company's total assets stood at Rs. 2,903.45 lakhs, a decrease from Rs. 3,270.13 lakhs as of March 31, 2025. The company's inventory levels decreased to Rs. 2,346.15 lakhs from Rs. 2,573.33 lakhs over the same period.

Borrowings

Long-term borrowings decreased to Rs. 849.35 lakhs as of September 30, 2025, from Rs. 1,244.81 lakhs at the end of the previous fiscal year, indicating a reduction in the company's debt burden.

Management Commentary

The Board of Directors, led by Managing Director Hitesh Mahendrakumar Shah, approved these unaudited financial results in a meeting held on November 4, 2025. The company's Audit Committee reviewed and recommended the financial results before the board's approval.

Market Implications

Following the announcement of these results, the trading window for designated persons and their immediate relatives, which had been closed since October 1, 2025, will reopen 48 hours after the public disclosure of the financial results.

UH Zaveri Limited operates within a single primary business segment. The company's performance reflects the challenges and opportunities in the Indian retail jewelry sector, with strong revenue growth potentially offset by increased operational costs and market pressures affecting profitability.

UH Zaveri Limited has unveiled the terms of its upcoming rights issue, aiming to raise up to ₹20.39 crore through the offering of new equity shares. The company's board of directors approved the issuance details in a meeting held on September 22, 2025, following the in-principle approval received from BSE Limited on July 31, 2025.

Rights Issue Details

The rights issue offers existing shareholders the opportunity to purchase additional shares in the company at a predetermined price. Key details of the issue include:

• Issue Size: Up to 2,03,88,000 fully paid-up equity shares
• Issue Price: ₹10 per share
• Rights Entitlement Ratio: 2:1 (Two new shares for every one share held)
• Record Date: October 3, 2025
• Issue Opening Date: October 30, 2025
• Issue Closing Date: November 10, 2025

Financial Impact

The rights issue is set to have a significant impact on UH Zaveri's share structure:

*Assuming full subscription

Issue Schedule and Process

The company has outlined the following schedule for the rights issue:

• Last Date for Credit of Rights Entitlements: October 27, 2025
• Last Date for On-Market Renunciation: November 4, 2025

Shareholders will be able to trade their rights entitlements on the stock exchange during this period. The International Securities Identification Number (ISIN) for the dematerialized Rights Entitlement is INE556Z20010.

Management Statement

Hitesh Mahendrakumar Shah, Managing Director of UH Zaveri Limited, signed off on the official communication to the BSE, detailing the outcome of the board meeting and the terms of the rights issue.

Investor Considerations

This rights issue presents an opportunity for existing shareholders to increase their stake in the company at a predetermined price. However, investors should carefully review the Letter of Offer, which contains detailed terms and conditions of the issue, before making any investment decisions.

The success of this rights issue could significantly bolster UH Zaveri's financial position, potentially providing the company with additional capital for future growth initiatives or debt reduction, depending on the stated use of proceeds in the offer document.

As always, investors are advised to conduct their own research and consult with financial advisors before participating in any securities offering.