Q1 FY27 Financial Performance

  • Revenue increased by 45% year-on-year to ₹586.36 crores versus ₹403.84 crores in Q1 FY26.
  • EBITDA increased by 89% year-on-year to ₹39.98 crores versus ₹21.15 crores.
  • EBITDA margins improved by 158 basis points to 6.82%.
  • Profit after tax increased by 84% year-on-year to ₹27.83 crores versus ₹15.15 crores.
  • PAT margins improved by 99 basis points to 4.75%.
  • EPS increased by 82.35% year-on-year to ₹11.16.

Three-Year Growth Since Listing

The company completed 3 years since its BSE SME listing in August 2023:

  • Revenue grew 5x from ₹481 crores in FY23 to ₹2,049 crores in FY26
  • PAT grew 10x from ₹8 crores to ₹89 crores

Growth Outlook and Targets

  • Targeting revenue of ₹5,000 crores by 2030
  • Targeting annual revenue growth of approximately 25% to 30%
  • B2C business targeted to contribute approximately 40% of overall revenue by FY2030
  • Planning to launch 8-10 stores over next 3-4 years across geographies

Main Board Migration Status

  • Shareholders approved migration from BSE SME platform to main board of both BSE and NSE
  • Application and documentation submission process underway
  • Migration expected to be completed in approximately 2 months
  • Subject to necessary regulatory approvals and fulfillment of all applicable requirements

Business Segment Updates

B2B Business:

  • Provides scale, stability and consistency
  • Working capital cycle: 40-45 days
  • Approximately 1,000 clients with no single client contributing more than 5-6% of total revenue
  • Focus on strengthening geographical reach and expanding client base

B2C Business:

  • Key growth driver going forward
  • Working capital cycle: 100-120 days
  • New flagship showroom monthly run rate: ₹30-35 crores
  • Targeting ₹500 crores revenue from flagship showroom
  • Old gold exchange contributes 15-20% of retail sales

Operational Metrics

  • Inventory level: Approximately ₹460 crores
  • Inventory turnover: Increased from 63 days in Q4 FY26 to 73 days in Q1 FY27
  • Total bank limit: ₹100 crores (working capital only)
  • Marketing spend: 5-7% of total earnings

Product and Strategy

  • Focus on higher-value categories including natural diamond jewellery
  • Exploring opportunities in silver jewellery category
  • Developing e-commerce platform for lightweight minimal jewellery
  • Gold savings kit app already operational
  • Design differentiation helping maintain making charges
  • 60% of retail sales estimated to come from bridal and wedding jewellery

Management Commentary

Management expressed confidence in achieving growth targets through:

  • Strengthening B2B business
  • Expanding B2C presence
  • Enhancing product and brand portfolio
  • Implementing disciplined execution and responsible growth

Q&A Session Highlights

Analysts and investors asked about:

  • Volume growth (approximately 15% in quantum)
  • Working capital management and cash flow expectations
  • Impact of gold price movements on business
  • Expansion funding plans (primarily through internal earnings)
  • Store formats and capex requirements
  • Competitive positioning and differentiation strategies

Conference Participants

Management:

  • Mr. Rajesh Mehta – Chairman and Joint Managing Director
  • Mr. Vikas Mehta – Chief Financial Officer

Moderator:

  • Mr. Parth Acharya – Kirin Advisors