Revenue (ex-bullion): Increased by 30% year-over-year (YoY) to ₹690 crores from ₹530 crores.
EBITDA: Increased by 22% YoY to ₹50 crores from ₹41 crores.
Profit After Tax (PAT): Increased sharply by 288% YoY to ₹25.6 crores from ₹6.6 crores.
Profit Before Exceptional Items: Grew by 40% YoY to ₹29.7 crores.
Owned Brand Revenue: Grew by 29% YoY to ₹89 crores from ₹69 crores.
Owned Brand EBITDA Margin: Improved to 11.5% from 10%.
Working Capital Days: Reduced significantly to 220 days from 253 days, an improvement of 33 days YoY.
Finance Cost: Remained broadly flat YoY.
Other Income: Was ₹8-9 crores, reported as being in the normal course of business.
Foreign Exchange Loss: Recorded a loss of approximately ₹13 crores for the quarter, attributed to currency appreciation.
Strategic and Operational Highlights
Business Restructuring: The company is strategically exiting certain customer-brand business verticals and lines that are below the cost of capital. This is expected to reduce annual revenue by ₹300-400 crores but is not anticipated to have a meaningful impact on the bottom line.
Working Capital & Cash Flow: A key priority for FY27 is working capital optimization, targeting a reduction of approximately ₹250 crores. This is expected to generate cash flow from operations of more than ₹300 crores during FY27, strengthening the balance sheet and improving capital efficiency.
Brand Portfolio Rationalization: The strategic focus is now on three core "power brands":
Jean Dousset (Owned, 65% stake): A luxury lab-grown diamond jewellery brand. The company operates 3 retail stores (Los Angeles, New York, San Francisco) and plans to add 4 more locations in FY27. Each store is projected to add ₹25-35 crores in sales. Store payback period is estimated at less than 1 year.
WithClarity (Owned): A digital-first fine jewellery brand with an annual run rate of ~₹220 crores, growing at ~20%. It has an average order value of $3,000 and gross margins of 60-65%.
Enchanted Disney Fine Jewelry (Licensed): The company has rationalized other licensed brands (NFL, Netflix, Harry Potter) to focus primarily on its Disney license for fine jewellery.
D2C Revenue Goal: The company remains committed to achieving ₹1,000 crores in direct-to-consumer (D2C) revenue by FY29 with an operating margin of at least 15% from this segment. The base for FY27 is approximately ₹500 crores (₹375 crores from owned brands + ₹125 crores from licensed D2C).
Guidance and Outlook
For FY27, revenue growth is expected to be muted due to the planned exit of low-margin businesses.
Bottom-line (PAT) growth is projected to exceed 30% for the full year.
The working capital reduction initiatives are expected to be fully realized by the end of FY27, leading to meaningfully lower net debt.
The company is open to evaluating new brand acquisitions, given the expected strong cash flow generation, but has nothing to report currently.
Other Details
Tariff Refunds: The company is in the process of applying for tariff refunds related to U.S. exports. The quantum is not yet determined, and some refunds may be shared with customers. More details are expected in coming quarters.
Inventory & Metal Prices: The company reported no inventory losses due to metal price fluctuations, as it is hedged against long-term commitments. The rise in gold and silver prices has minimized exit costs on inventory related to business exits.
